WOOD DALE, ILLINOIS (February 04, 2010) — AAR (NYSE: AIR) announced today that the FAA and EASA have issued Supplemental Type Certificates (STC) approving the Company’s cargo handling system for the 767-300 airframe. AAR was selected by IAI’s Bedek Aviation Group (IAI) to design the cargo system for the launch of its 767-300 conversion program.

IAI installed the AAR cargo system to convert a 767-300 from passenger configuration into a modern and efficient General Market Freighter (GMF) configuration. The system was manufactured at AAR Cargo Systems state-of-the-art facility in Goldsboro, North Carolina.

“AAR is leading the industry with our design capabilities on the 767 airframe,” said Vin Misciagna, General Manager, AAR Cargo Systems. “Developments on our new freighter conversions are leading to greater efficiency and smoother operation for our customers. Further, AAR continues to invest in its design and engineering capabilities, which will increase the value we provide our customers and strengthen our position in the marketplace.”

In 2002, AAR worked closely with IAI to develop the first aftermarket cargo handling system for the 767-200. AAR now holds STCs with IAI for both the 767-200 and 767-300. AAR also holds an STC with Boeing/Aeronavali for 767-200 cargo systems and is the only company in the industry to hold STCs with both companies for these aircraft conversions.

AAR Cargo Systems specializes in the design and manufacture of in-aircraft cargo loading systems for commercial and military applications. AAR is a leading provider of products and value-added services to the worldwide aerospace and defense industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and defense customers through four operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems; and Aircraft Sales and Leasing. 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 May 31, 2009 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.