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Press release

June 19, 2001

Embraer and AAR Sign Three Year Service Agreement at Paris Air Show

PARIS /PRNewswire/ -- Embraer (NYSE: ERJ; Bovespa: EMBR3, EMBR4) and AAR (NYSE: AIR) announced today at the Paris Air Show that they have signed a three year agreement under which AAR Aircraft Component Services will become an authorized service center for the maintenance and repair of components installed on aircraft manufactured by Embraer.

"We are pleased that Embraer has selected AAR to provide aircraft component repair and maintenance services for their customers' aircraft," said Joseph M. Gullion, AAR vice president and chief operating officer. "This agreement builds on our position as the premier logistics provider and component repair facility for regional/commuter aircraft in Europe."

Embraer manufactures a complete array of regional jets with seating capacities ranging from 37 to 108 passengers. These regional jetliners provide airlines more schedule and service flexibility, offer the possibility of direct service between more locations, and allow cost-effective service on routes that would be unprofitable with larger jets. Embraer also provides a wide array of sophisticated aircraft for defense customers around the world. Under this agreement, AAR Aircraft Component Services will be an authorized repair station for all Embraer-manufactured parts and other approved components installed on Embraer aircraft.

Embraer is the world's fourth largest commercial aircraft manufacturer and is headquartered in Sao Jose dos Campos, state of Sao Paulo, with offices in Australia, China, France, Singapore and the United States, and a total workforce of over 11,000 people. Embraer (Empresa Brasileira de Aeronautica S.A.) is Brazil's largest exporter for the two preceding years and has a firm backlog of US$ 11 billion and US$ 12.7 billion in options, as of March 31, 2001. Embraer has over 31 years of experience in designing, developing, manufacturing, selling and providing after sales support to aircraft aimed for the world airline and defense markets.

AAR Aircraft Component Services -- Amsterdam, a division of AAR Corp., services rotable components with AOG service-24 hours a day, 365 days a year at its state-of-the-art facility equipped to repair, overhaul, and maintain more than 22,000 parts. Inventory includes components for large commercial aircraft such as Boeing/McDonnell Douglas and Airbus, as well as regional aircraft such as BAe, Fokker, ATR, Embraer, Bombardier and Saab. The facility is also an authorized warranty repair station for manufacturers such as Honeywell, Aerospatiale Canada, AMETEK, Kollsman and many others.

AAR 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. Further information can be found at

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.


CONTACT: Dawn Kaiser, Investor Relations of AAR Corp., 630-227-2098, or e-mail, 

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