• Joint venture will provide full component management support for Airbus A320 in North and Central America
• Program furthers AAR strategy of providing integrated solutions for customer MRO needs and Air France Industries' strategy of providing its full range of proximity services in North and Central America

WOOD DALE, ILLINOIS (December 17, 2001) - AAR and Air France Industries (AFI) announced today that the two companies have formed a joint venture, Spairwise, L.L.C., to provide full component management support to operators of Airbus A320 family of aircraft in North and Central America.

Spairwise will provide full spares provisioning and supply, component repair, logistics management, pool access and flexible financing options. The joint operation, which is expected to be based in Atlanta, Georgia, will utilize the component maintenance capabilities of both partners.

"AFI and AAR have been interested in pursuing A320 component maintenance opportunities in the North and Central American market for some time. Spairwise will enable AFI and AAR to become a single source for component supply and overhaul to Airbus A320 operators throughout the Western Hemisphere," AAR President and CEO David P. Storch and AFI CEO Alain Bassil said. "This partnership further strengthens AAR's and AFI's ability to provide a range of solutions that can be integrated to meet customers' needs."

AFI headquartered in Paris, France is the Maintenance business unit of Air France airline, which was the launch customer of all Airbus family of aircraft and still remains the worldwide A320 fleet leader in terms of operations. AFI has gained a second to none experience in A320 family comprehensive maintenance, supporting more than 130 A320 aircraft and serving more then 100 airlines worldwide.

AAR is the preeminent provider of products and value-added services to the worldwide aerospace/aviation industry. Products and services include proprietary inventory management and logistic support services, encompassing supply, repair and manufacture of spare parts and systems. Headquartered in Wood Dale, Illinois, AAR serves commercial and government aircraft fleet operators and independent service customers throughout the world.

Further information can be found at www.aarcorp.com. and www.airfranceindustries.com

This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, depending on a variety of factors, including: implementation of information technology systems, integration of acquisitions, marketplace competition, economic and aviation/aerospace market stability and Company profitability. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described.