Wood Dale, IL (July 18, 2002) - AAR (NYSE: AIR) announced today that, AAR Cadillac Manufacturing, a leading global supplier of military mobility systems and equipment, changed its name to AAR Mobility Systems.

"The new name reflects our strengths in developing and producing equipment that helps our military customers deploy, maneuver, and sustain their forces more efficiently", said AAR Mobility Systems General Manager Mark McDonald. "This change helps strengthen our brand, and it will better define the company's position in domestic and international markets."

With major facilities in Cadillac, Michigan and Sacramento, California, AAR Mobility Systems has over 50 years experience developing innovative products for military customers and prime contractors. The company focuses on three main product lines for the military and OEM system development market: tactical shelter systems, ISU® high mobility shipping containers, and air cargo pallets and palletized systems.

Another AAR unit located in Cadillac, Michigan - AAR Composites - is unaffected by this name change. AAR Composites, a supplier of composite flat panels and custom linear profiles to the aircraft maintenance and spare parts markets, will continue doing business under its current name.

AAR Mobility Systems and AAR Composites are divisions of AAR Manufacturing Inc., the industrial arm of AAR Corporation. Other AAR Manufacturing units include AAR Composites in Clearwater, Florida, manufacturer of highly engineered composite structures and sub-assemblies for aerospace and transportation applications, and AAR Cargo Systems, which designs, fabricates, and installs internal cargo handling systems for military and commercial aircraft.

AAR Corp. (NYSE: AIR) is the preeminent provide 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..

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.