WOOD DALE, ILLINOIS (September 13, 2005) - AAR (NYSE: AIR) announced today that its Mobility Systems division received an order for air cargo pallets from the U.S. Air Force valued at $30 million over the next year.

AAR provides standard pallets used by the U.S. Air Force to transport concentrated cargo. These pallets are designed to be used with the dual-rail cargo systems found on C-17, C-130, C-5 and C-141 military transport aircraft. AAR has been the primary supplier of pallets to the USAF since 1963.

"We are committed to providing the U.S. Air Force, and all our defense customers, with a variety of products and services that improve operational efficiency and mission readiness," said David P. Storch, President and Chief Executive Officer of AAR. "This new pallet order demonstrates how AAR's structures and systems have become an integral part of USAF operations. We look forward to continuing to provide equipment that meets the highest standards of quality and reliability."

Experience gained through the development of AAR's standard pallets has led to the design and manufacture of enhanced pallets and platforms, such as pallets for transport of ISO containers, custom pallets for unique cargo and quick-change palletized seat/galley/lavatory systems for a wide range of military and commercial aircraft.

AAR Mobility Systems, an operating division of AAR, manufactures containers, shelters and pallets for military customers and prime contractors. AAR is a diverse provider of products and value-added services to the worldwide aviation/aerospace industry. Headquartered in Wood Dale, Illinois, with locations around the world, AAR services commercial and government aircraft fleet operators and independent service customers by providing Aviation Supply Chain services; Maintenance, Repair and Overhaul services; Structures and Systems manufacturing and Aircraft Sales and Leasing. 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, including those factors discussed under Item 7, entitled "Factors Which May Affect Future Results", included in the Company's May 31, 2005 Form 10-K. 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. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control. The Company assumes no obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission.