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Press release

December 07, 1998

AAR Believes Recent Stock Activity Unrelated To Fundamental Performance, Outlook

WOOD DALE, ILLINOIS -- AAR CORP.President and Chief Executive officer David P. Storch said today that AAR believes recent activity in the Company's share price and volume is not reflective of the fundamental performance and outlook of the Company.

"AAR's fundamental performance and outlook remain solid," Storch said. "Management believes that last week's activity in our stock is related to Boeing Aircraft's recently announced difficulties. Management would like to reiterate that as a customer, Boeing accounts for less than one percent of AAR's business. In addition, as previously noted, AAR derives less than three percent of revenues from the depressed Asian market which Boeing cited as a cause of some of its problems." Storch went on to say, "Typically, a reduction in the delivery of new aircraft creates greater demand for support services for the existing world fleet."

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Media Team
Corporate Marketing & Communications
+1-630-227-5100
Editor@aarcorp.com

AAR CORP., traded NYSE (AIR), and headquartered in Wood Dale, Illinois, is a leading supplier of aerospace/aviation products and services. The Company primarily supplies parts and equipment, performs technical services and manufactures proprietary products for the global aviation industry.

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