WOOD DALE, ILLINOIS, May 9, 2001 - AAR (NYSE: AIR) announced today that the Company's cargo systems manufacturing division, AAR Cargo Systems, was awarded a contract with UPS to design and manufacture the main deck cargo loading systems for their MD-11 freighters. Under the contract, the cargo loading systems will be provided as buyer furnished equipment in support of the UPS MD-11 freighter conversion program with Boeing Airplane Services. The contract is for 13 cargo loading systems with an option for an additional 22 systems.

"AAR has developed a customized MD-11 cargo loading system for UPS that provides innovative features to accelerate the loading and unloading process," said AAR Cargo Systems President and General Manager, Ron Kelner. "We are committed to adding value to our customers' cargo operations and we are pleased that UPS has given us the opportunity to add value to their new MD-11 operation."

AAR Cargo Systems, an operating unit of AAR (NYSE: AIR), is based in Livonia, MI and specializes in the design and manufacture of in-aircraft cargo loading systems.

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