WOOD DALE, ILLINOIS (May 4, 2009) — AAR (NYSE: AIR) announced today that it has been selected by IAI’s Bedek Aviation Group (IAI) to provide the cargo system for the launch of its 767-300 conversion program. IAI is converting a 767-300 from its current passenger configuration into the modern and efficient General Market Freighter (GMF) configuration. AAR will manufacture the GMF system at its state-of-the-art facility in Goldsboro, North Carolina.

In 2002, AAR worked closely with IAI to develop a GMF system for the 767-200 as part of the first aftermarket freighter program for this aircraft type. Upon completion of the 767-300 program, AAR will hold Supplemental Type Certificates (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.

"We are very pleased that we were selected by IAI and look forward to working with them on this program," said Vincent Misciagna, General Manager of AAR Cargo Systems. "The new STC with IAI gives operators who want to standardize on the AAR platform more choices for their cargo conversions."

AAR Cargo Systems, an operating division of AAR, 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, 2008 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.