OKLAHOMA CITY, OKLAHOMA (June 18, 2003) - AAR and Aviation Partners Boeing have signed an Installation Center agreement under which AAR Aircraft Services-Oklahoma will provide installation support for Aviation Partners Boeing's Blended Winglets for the 737-300SP, 737-700 and 737-800 series aircraft. The one-year agreement with five one-year options was launched with installation of Blended Winglets in the first aircraft, a 737-300 SP.

Aviation Partners Boeing is a joint venture between Aviation Partners, Inc. and the Boeing Company producing performance enhancements for a wide range of Boeing aircraft models using Blended Winglet Technology.

To date, over 200 Next Generation Boeing 737-700/800s and BBJ's have had installations with Blended Winglets. In 2003, Blended Winglets were certified for the Classic Series 737-300SP, and will be followed this year by the 737-400. Blended Winglet technology, pioneered by Aviation Partners, Inc. ten years ago for the Gulfstream II business jet, dramatically reduces aircraft drag and improves both fuel economy and performance. In Next Generation 737-700/800 and BBJ applications, operators have reported truly dramatic results-four to five percent reductions in fuel burn, a reduced noise footprint and reduced engine emissions. The environmentally friendly benefits of Blended Winglets have captured the attention of Boeing operators and regulators worldwide. Aviation Partners Boeing looks forward to improving the productivity of the entire airline industry over the next 15 years with its revolutionary Advanced Blended Winglet Technology.

"We are pleased that Aviation Partners Boeing has selected AAR to provide installation services for their 737 Blended Winglet products," said Rick Townsend, Vice President Sales, Marketing and Customer Support for AAR Aircraft Services-Oklahoma. "Our ability to provide these major structural modifications was a significant factor in their decision. We look forward to working with Aviation Partners Boeing."

AAR Aircraft Services-Oklahoma, an operating division of AAR Corp. (NYSE: AIR), provides services and support for major and regional airlines, cargo carriers and domestic and international OEM's with inspection and repair, major airframe modification, avionics service and installations, exterior painting, interior refurbishment and complete FBO services including major airline ground support and refueling. Their FAA repair station #JR2R936K maintains Airframe Class 1, 3 and 4; Powerplant Class 1; Radio Class 1,2, and 3; Propeller Class 1 and 2 ratings along with Limited Ratings for Airframe Specialized Services, Accessories and Instrument. AAR is accepted by the Joint Aviation Authorities as an acceptable source of maintenance for JAA Member Authority Controlled Aircraft/Aircraft Components in accordance with JAR 145.10 (d)/(f), is ISO 9002 certified, and implements FAA Anti-Drug and Alcohol Testing plans.

AAR is the leading provider of aftermarket support to the worldwide aviation/aerospace industry. Products and services include customized inventory management and logistics programs, encompassing supply, repair and manufacturing 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

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.