AAR to Build Cargo Systems for Kawasaki’s C-2 Military Transport Aircraft

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AAR Design to be Used for Japan’s Next-Generation Cargo Fleet

WOOD DALE, ILLINOIS (November 16, 2011) — AAR (NYSE: AIR) announced today that it was selected by the team of Kawasaki Heavy Industries and ShinMaywa Industries to manufacture cargo handling systems for the Kawasaki C-2, formerly the C-X aircraft. The C-2 is Japan's next-generation military transport aircraft slated to replace its aging C-1 fleet. AAR is manufacturing systems for two initial production aircraft, with delivery expected to be completed in calendar year 2013. The overall program requirements are expected to run for ten years.

AAR worked with Sojitz Aerospace, international distributor for the C-2 program, and has been working with Kawasaki Heavy Industries and ShinMaywa Industries since it was selected to design and develop the aircraft’s cargo system in 2004. The systems are being produced at AAR's Cargo Systems Division at its Goldsboro, North Carolina manufacturing facility.

“We are very proud of our role in the development and production of this new cargo aircraft designed to support the Japanese Ministry of Defence transport requirements,” said Terry Stinson, Group Vice President for AAR’s Structures and Systems segment. “The order further strengthens AAR’s position as a leading cargo systems provider to the global aerospace market and we are pleased to extend our close working relationship with Kawasaki and ShinMaywa Industries.”

AAR plans to expand its cargo systems business with the acquisition of Telair International GmbH and Nordisk Aviation Products, known for their leadership position in the commercial cargo market. The acquisition is expected to close during the first week of December.

AAR Cargo Systems specializes in the design and manufacture of in-aircraft cargo handling systems for military and commercial applications. AAR is a leading provider of products and value-added 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 atwww.aarcorp.com.

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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, 2011 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.

News Source : AAR to Build Cargo Systems for Kawasaki’s C-2 Military Transport Aircraft