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Press release

July 06, 2011

AAR Receives $24 Million in Shelter Orders From U.S. Army

Company extends mobility product line through innovation and advanced manufacturing

WOOD DALE, Ill., /PRNewswire via COMTEX/ --AAR (NYSE: AIR) announced today that it has been awarded a five-year contract to provide lightweight, multi-purpose shelters (LMS) for the U.S. Army, valued up to $14 million. LMS is the primary platform the U.S. Army uses to house and operate command and control equipment for situational awareness and tactical support in various theaters of operation. This is AAR's first award on this large and strategic platform.

The Company was also awarded a three-year contract valued at up to $10 million, under which it will provide 20' ISO shelters for the U.S. Army. The Army will use these shelters for mobile Petroleum Quality Analysis Systems (PQAS) to test and analyze fuels in support of in-theater operations. The contract follows an award for PQAS shelters that AAR received in 2007.

"I'm very proud of our team's ability to innovate and utilize the latest technologies in winning the LMS contract," said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. "This award extends AAR's reach across command and control applications with a broader range of mobility products."

To manufacture the new LMS shelters, AAR is using advanced techniques that feature friction stir welding and integrated electromagnetic shielding to house and isolate sophisticated battlefield systems. The durable LMS shelters are designed to be mounted on High Mobility Multi-Purpose Wheeled Vehicles (HMMWVs or Humvees) for applications ranging from communications to controlling unmanned aircraft. LMS adds to AAR's full line of shelters used by the U.S. Army, which also includes SATS and FMTV products. The work will be performed in Cadillac, Michigan, at AAR's Mobility Systems manufacturing and integration facility.

Through its Mobility Systems operating unit, AAR has built a reputation as a leading provider of mobility products to the government and defense industries. AAR Mobility Systems designs, manufactures, and supports a wide variety of rapid deployment equipment and air-mobile expeditionary systems. AAR is a leading provider of value-added products and services to the worldwide aerospace and government and defense industries. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and government and defense customers through four operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems; and Government and Defense Services. More information can be found at www.aarmobilitysystems.com or 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, 2010 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 update 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.

AAR - Named one of The Most Trustworthy Companies by Forbes magazine.

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