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Press release

January 31, 2007

AAR Selected by Armor Holdings for Logistics Support

WOOD DALE, Ill., /PRNewswire-FirstCall via COMTEX News Network/ -- AAR (NYSE: AIR) today announced that it has signed an agreement with Armor Holdings, Inc. under which AAR Defense Systems & Logistics will provide logistics support services for the repair of FMTV (Family of Medium Tactical Vehicles) trucks at the Red River Army Depot in Texarkana, Texas. Under the terms of the agreement, AAR will provide logistics and inventory management support to Armor Holdings, Inc. for a period of two years with an option to extend the agreement for a third year. To support the program, AAR and Armor Holdings, Inc. are operating a warehousing facility near the Red River Army Depot.

"We're excited about building upon our relationship with Armor Holdings, Inc. in support of its repair operations at the Red River Army Depot," said Jim Clark, Group Vice President of AAR's Aviation Supply Chain Group. "This expansion of our logistics services in support of the U.S. Army is a testament to the flexibility and scalability of AAR's supply chain management capabilities."

Through its Defense Systems & Logistics operating unit, AAR supports defense programs for the U.S. and its allies with an extensive range of logistics services including supply and value chain management, parts acquisition and distribution, and operations and maintenance logistics management.

AAR is a leading provider of products and value-added services to the worldwide aviation/aerospace industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve airline and defense customers through four operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing. Further information can be found at http://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, including those factors discussed under Item 1A, entitled "Risk Factors", included in the Company's May 31, 2006 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.

SOURCE: AAR CORP.


CONTACTS:
Chris Mason
Director of Corporate Communications of AAR
+1-630-227-2062
chris.mason@aarcorp.com

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