WOOD DALE, ILLINOIS (May 30, 2002) - AAR and Lufthansa CityLine announced that they have signed a three-year agreement under which AAR Aircraft Component Services - Amsterdam will provide component management and repair for Cityline´s 18 Avro RJ85s.

"We are very pleased and proud that Lufthansa CityLine has again selected AAR to provide aircraft component support for part of their fleet," AAR Aircraft Component Services' Vice President Sales & Marketing Jürgen Büttgenbach said. "Partnering with this fine airline, which was awarded best regional airline of the world in 2001, is a challenge to all of us. This new Flight Hour Agreement is another major step towards increasing our presence in the regional airline business."

As Europe's leading regional airline, Lufthansa CityLine carried more than 6 million passengers last year, an all-time high. It operates with a modern fleet of 69 aircraft, including 43 Canadair Jet CRJ 100/200s (50-seater) and 18 Avro RJ85s (80-seater). Lufthansa CityLine, the Lufthansa regional carrier plays an important role in developing new routes and opening up new markets. CityLine provides feeder services to the Lufthansa and Star Alliance hubs, in particular Frankfurt and Munich, thus making a contribution towards improving the quality of the network and integrating European regions into the global network.

AAR Aircraft Component Services - Amsterdam, an operating division of AAR Corp. (NYSE: AIR), 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 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.lufthansacityline.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.