WOOD DALE, ILLINOIS (June 16, 2003) - AAR (NYSE: AIR) is proud to announce a joint partnership with IBERIA Maintenance offering comprehensive component support of the Bombardier CRJ aircraft on the "One Stop Shop" concept, effective June 16, 2003. This alliance will assist airlines in reducing operational costs, inventory levels and streamlining suppliers.

This partnership is based on both AAR's and IBERIA Maintenance's CRJ component expertise in the field of repairs and logistics in their respective Amsterdam and Madrid facilities as well as supporting their overall presence of regional aircraft MRO in Europe, Middle East and Africa. In addition, it gives IBERIA Maintenance and AAR customers the benefit of a wide component repair capability, access to a large and complete stock of components, and the option to choose among different profitable pooling arrangements.

"We are pleased with this new alliance with IBERIA Maintenance as part of our strategy to reinforce and expand our regional aircraft MRO presence in Europe," said Jean-Philippe Schumacher, Vice President Marketing and Business Development for Europe, Middle East & Africa. "Throughout this partnership, which closely combines our industrial capabilities, resources and individual expertise, we are able to offer CRJ operators nose-to-tail support to cover all aspects of maintenance such as inventory management, engines, wheels & brakes, landing gears and components maintenance services, and allow for price competitiveness and efficient logistics."

IBERIA Maintenance is a full maintenance service provider supporting any operator from line maintenance up to airframe, engine and components overhaul. IBERIA Maintenance, located at Madrid Airport, Spain, provides repair and overhaul of the A-320 family, A-340, MD-80's and B-757 airframes, a full range of components, and CFM56-5A/B/C, JT8D-200's, RB211 535 E4, JTD7Q/59A/70A and licensed for CF34 engines. More detailed information can be found at http://maintenance.iberia.com.

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.