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Press release

February 03, 2005

AAR Awarded Contract From Link Simulation and Training to Support U.S. Navy C-40A Logistical Support Program

WOOD DALE, Ill., /PRNewswire-FirstCall via COMTEX/ -- AAR (NYSE: AIR) announced today that it received a contract from Link Simulation and Training (Link) to provide logistical support for the U.S. Navy's fleet of C-40A aircraft. Link is the prime contractor on the C-40A contractor logistics support program.

Under terms of the one-year agreement with four one-year renewal options, the team of Link, American Airlines and AAR will provide end-to-end inventory supply chain management and airframe maintenance services for the U.S. Navy's C-40A (B737-700) aircraft.

"We're pleased to be a part of the team selected to provide logistical support for the Navy's C-40A fleet," said David Storch, President and CEO of AAR. "Our team will provide a complete and comprehensive maintenance and inventory solution for the U.S. Navy as they grow and operate their C-40A fleet."

As part of the team, AAR will perform scheduled and unscheduled depot- level and airframe maintenance, provide Link with inventory logistics support and manage component repairs and overhauls.

Link Simulation and Training will provide overall program management, inventory management and quality assurance, while team member American Airlines provides maintenance oversight, access to a B737-700 parts pool and support for engines, auxiliary power units and landing gear.

AAR is a leading provider of products and value-added services to the worldwide aviation/aerospace industry. Products and services include customized inventory management and logistics programs; maintenance, repair and overhaul of aircraft, aircraft components and engine components; engine and aircraft sales and leasing; and the manufacture of cargo systems, composite structures and mobility systems. Headquartered in Wood Dale, Illinois, AAR serves commercial and government aircraft fleet operators, original equipment manufacturers and independent service customers throughout the world. Further information can be found at .

Link Simulation and Training, which is celebrating its 75th anniversary, is a systems integration organization that delivers and supports training systems and equipment to enhance operational performance. Link's services include conducting front end analysis, program design, simulator design and production, and field support. Link has its headquarters operation in Arlington, TX, and other key bases of operation in Binghamton, NY, Orlando, FL, Broken Arrow, OK, and Phoenix, AZ.

American Airlines, a subsidiary of AMR Corporation, is the world's number one air carrier. With a fleet of 703 jets and hubs in Chicago, Dallas/Fort Worth, Miami, and San Juan, Puerto Rico, American Airlines serves about 150 destinations in the Americas, Europe, and the Pacific Rim.

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, including those factors discussed under Item 7, entitled "Factors Which May Affect Future Results", included in the Company's May 31, 2004 Form 10-K. 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. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control. The Company assumes no obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission.


Contact: Chris Mason, Director of Corporate Communications of AAR, +1-630-227-2062,

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