WOOD DALE, ILLINOIS - November 1, 2001 - AAR and KLM uk Engineering Limited announced that they have signed a three-year agreement under which AAR Aircraft Component Services - Amsterdam will provide component management and repair for KLM uk's fifteen Fokker 100's.

"We are pleased that KLM uk Engineering has selected AAR to provide aircraft component support for their Fokker 100 aircraft", AAR Aircraft Component Services' Vice President and General Manager Frank Spring in't Veld said. "This agreement further expands our relationship with KLM uk Engineering as we already successfully support their BAe146 fleet. It is another major step towards increasing our presence in the regional airline business."

KLM uk Engineering Limited is a wholly owned subsidiary of KLM uk Holdings Limited. KLM uk currently flies from 12 UK airports into Amsterdam and connects to the network of KLM and its partners offering over 400 destinations in almost 80 countries on 6 continents.

AAR Aircraft Component Services - Amsterdam, a division of AAR Corp., services rotable components with AOG service-24 hours a day, 365 days a year at its state-of-the-art facility equipped to repair, overhaul, and maintain more than 22,000 parts. Inventory includes components for large commercial aircraft such as Boeing/McDonnell Douglas and Airbus, as well as regional aircraft such as BAe, Fokker, ATR, Embraer, Bombardier and Saab. The facility is also an authorized warranty repair station for manufacturers such as Allied Signal, Aerospatiale Canada, AMETEK, Kollsman and many others.

AAR CORP. (NYSE: AIR) 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.klmukengineering.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.