WOOD DALE, ILLINOIS (December 10, 2003) - AAR (NYSE: AIR) announced today that its order backlog has increased $45 million, or 44 percent, since the beginning of its fiscal year in June. The increase is driven primarily by orders for the Company's rapid deployment solutions, manufactured cargo systems and airframe maintenance services.

"We continue to make significant progress in our key markets. Demand for our Mobility Systems' products remains strong and we expect this trend to continue as the U.S. Military seeks a more rapidly deployable force," said AAR President and CEO, David P. Storch. "The backlog at our airframe maintenance facility in Oklahoma has doubled since the beginning of the year, reflecting our selection by customers like Alaska Airlines and Mesa Air Group to provide a variety of light-to-heavy maintenance on aircraft in their fleets. We've also won several new orders for cargo systems, designed and manufactured for the conversion of wide-body aircraft."

In other news, the Company will release financial results for its second quarter of Fiscal 2004 ended November 30, 2003 before the market opens on Thursday, December 18. Following the earnings release, the Company will hold a conference call at 10:30 a.m. CST to discuss the results. The conference call can be accessed via dial-in (1-719-457-2665; conference code 776553). A replay of the call will be available (1-719-457-0820; conference code 776553) from approximately 1:30 p.m. CST on December 18 until 12 a.m. CST on Wednesday, December 24, 2003.