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Press release

September 14, 1998

AAR Wins Five-Year Contract To Support U.S. Marshals Service

WOOD DALE, Ill., Sept. 14 -- AAR CORP. (NYSE: AIR - news) announced today that the Company's aircraft maintenance facility in Oklahoma City has won a five-year contract, including options, to provide line maintenance, scheduled heavy maintenance and inventory supply and management on 12 or more aircraft operated by the United States Marshals Service (USMS) and Immigration and Naturalization Service. The multi-year contract is a continuation of a one-year contract with the USMS awarded in September 1997, and is valued at approximately $67 million.

"We are very pleased that the U.S. Marshals Service has selected AAR to continue to provide aircraft maintenance and flight support for their fleet," David P. Storch, AAR CORP. President and Chief Executive Officer, said. "We see this contract award as a direct result of the outstanding performance of the employees at our Oklahoma facility who diligently provide the highest standards of quality and support our customers expect."

"The contract is indicative of the solid growth we have seen over the past two years at our Oklahoma facility," Storch continued. "To accommodate growth, we opened a new maintenance hangar and expanded our backshop earlier this year."

The aircraft are operated out of facilities in Oklahoma City; El Paso, Texas; Alexandria, Louisiana and Anchorage, Alaska: aircraft types include B727, DC-9, Sabreliner, Learjet 25D, Piper Cheyenne and Cessna 185.

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.

Media Team
Corporate Marketing & Communications

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