WOOD DALE, Ill., /PRNewswire via COMTEX/ --AAR (NYSE: AIR) has been selected prime contractor by the U.S. Department of Energy National Nuclear Security Administration (NNSA) to provide supply chain and aircraft support services for NNSA's aircraft maintenance operations in Albuquerque, New Mexico. The agreement strengthens AAR's position as prime contractor in the global government and defense market, which currently accounts for approximately half of AAR's business.

The contract has an initial one-year base period and four one-year renewal options with a total estimated value of $18.5 million. AAR will provide logistics and aircraft support for NNSA's fleet of Boeing 737-400 passenger/cargo (Combi), DC-9 Combi and Learjet aircraft. Work is scheduled to begin in December and will be performed by a dedicated program team managed by AAR's Aircraft Services division in Oklahoma City.

"AAR will provide reliable and cost-effective logistics and support to ensure these critical resources are available and operating at peak efficiency," said Donald J. Wetekam, Senior Vice President, Government and Defense Business Development. "We're honored to have been selected by the Department of Energy as a member of the team supporting the NNSA Service Center and its mission."

The NNSA is responsible for the management and security of the nation's nuclear weapons, nuclear non-proliferation and naval reactor programs. It is also the nation's primary responder to a nuclear or radiological incident in the United States or abroad, and provides operational planning and training to counter both domestic and international nuclear terrorism. Its aircraft are used to provide safe and secure transport of nuclear weapons components, nuclear limited life components and federal agent task forces.

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 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.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 Form 10-K for the fiscal year ended May 31, 2011. 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.