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Press release

October 21, 1999

Grupo TACA Selects AAR for Regional Aircraft Landing Gear Support

WOOD DALE, Ill., /PRNewswire/ -- AAR CORP. (NYSE: AIR) and Grupo TACA announced today that they have signed an exclusive agreement under which AAR will be the exclusive provider of landing gear overhaul and repair services for the alliance's fleet of 42 regional aircraft. The new agreement further expands the AAR and Grupo TACA relationship which began last October when the two companies announced that AAR had been selected to provide airframe inventory management and component maintenance in support of Grupo TACA's jet aircraft.

All work under the new agreement will be performed by AAR Tempco Hydraulics at its location in Miami Lakes, Florida. AAR acquired Tempco Hydraulics in October 1998 to expand its existing landing gear overhaul and repair capabilities to include regional airlines.

"We are pleased that Grupo TACA has selected us to provide yet another service in support of their fleet," AAR President and Chief Executive Officer David P. Storch said. "This is another example of our ability to provide customized, value-added services to meet customers' needs and enable them to operate more efficiently."

"AAR's performance in our original agreement combined with their ability to provide service and support capabilities for various aircraft type were key to our decision to award them this contract," Federico Bloch, Grupo TACA President and Chief Executive Officer, said.

Grupo TACA is an alliance formed by the major airlines in Central America: Aviateca, Lacsa, Nica, TACA and TACA of Honduras. The alliance operates the third largest aircraft fleet in Latin America, serving major cities in Central America, Mexico, the Caribbean, South America, Canada and the United States. Grupo TACA performs major maintenance and line maintenance for its fleet of Airbus and Boeing aircraft, and provides maintenance services to other airlines in the region.

AAR CORP. (NYSE: AIR) 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.


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