AAR Announces Expansion of its Composites Business

Singapore (February 18, 2008) — AAR CORP. (NYSE: AIR) announced today at the Singapore Airshow that it is significantly expanding its Composites manufacturing operations with the lease of a 90,000-square-foot facility located at the McClellan Business Park, formerly McClellan Air Force Base, in Sacramento, California.

AAR will occupy the portion of the McClellan facility formerly used by the U.S. Air Force for manufacturing composite replacement aircraft parts. The expansion provides more than four times the Company’s current composites manufacturing capability through additional equipment and added capacity at the facility.

“Increasingly, the aircraft community is using a higher percentage of composite content in the manufacturing process as it seeks to take advantage of the material’s improved strength and lighter weight,” said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. “We’re expanding our composites manufacturing capacity to capitalize on this trend and keep pace with our customers’ changing requirements.”

Headquartered in Clearwater, Florida, AAR Composites has a 27-year history in the development, design, engineering, tooling and fabrication of advanced composite structures for the aviation and transportation industries. AAR Composites operates as part of AAR’s Structures and Systems segment, which currently accounts for approximately 25 percent of the company’s sales.

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 & Overhaul; Structures & Systems and Aircraft Sales & Leasing. Learn more at www.aarcorp.com.