AAR Selected for Boeing's 767 Tanker Transport Team

WOOD DALE, Ill., /PRNewswire-FirstCall/ -- AAR (NYSE: AIR) announced today that the Company's Clearwater, Fla. manufacturing unit, AAR Composites, has been selected by Boeing (NYSE: BA) to design and manufacture a composite main deck cargo barrier for the 767 Tanker Transport.

The new air-refueling aircraft accommodates passenger, freighter, and convertible combi configurations while maintaining tanker capability. AAR will furnish the lightweight structural barrier to restrain forward movement of cargo, and act as a smoke and fire barrier from the main deck cargo compartment. The first of 4 (four) tanker aircraft for the Italian Air Force is scheduled for delivery in 2005. The global market for 767 Tanker Transports is expected to be more than 500 aircraft over the next 30 years.

"We are pleased to be selected by Boeing for this very important program," said AAR President and CEO David P. Storch. "AAR will be working closely with Boeing and other members of its team to develop a system that will enhance the performance and safety of this aircraft."

AAR Composites, a division of AAR, specializes in the design, development and manufacture of advanced composite structures. AAR is the leading provider of aftermarket support to the worldwide aviation/aerospace industry. Products and services include customized inventory management and logistics programs, encompassing supply, repair and manufacture of spare parts and systems. 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.

SOURCE AAR CORP.

CONTACT: Dawn Kaiser of AAR, +1-630-227-2098, dkaiser@aarcorp.com ; or Paul Guse of Boeing Integrated Defense Systems, +1-314-232-1520, paul.m.guse@boeing.com