AAR Completes Financing Agreement

WOOD DALE, Ill., /PRNewswire-FirstCall via COMTEX/ -- AAR (NYSE: AIR) today announced the completion of a new $35 million accounts receivable securitization facility with LaSalle Bank, N.A./ABN AMRO. This program replaces an expiring accounts receivable securitization facility as well as an expiring credit facility. This is the first in a series of planned financing transactions which, combined with the Company's current cash position and internal cash generation initiatives, are expected to provide adequate liquidity for the Company as it replaces its maturing credit arrangements, including the Notes due in October 2003.

In other news, the Company will release financial results for its third quarter of Fiscal 2003 before the market opens on Thursday, March 27. Following the earnings release, the Company will hold a conference call to discuss the results at 10:30 a.m. CST.

AAR (NYSE: AIR) 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. 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 www.aarcorp.com .

SOURCE AAR

CONTACT: Timothy J. Romenesko, Vice President & Chief Financial Officer, of AAR, +1-630-227-2090, tromenesko@aarcorp.com