Press Release

Issued by AAR Corp.

January 13, 2011

AAR Distribution has been selected as the exclusive distributor in North America and Asia for ADS/Transicoil, a leading aftermarket manufacturer of custom avionics, LCD displays and motion control products for the commercial aerospace market. AAR Distribution, which operates as part of the company's Allen Asset Management division, provides a variety of inventory management and related services to the commercial aviation marketplace.

Under terms of the distribution agreement, AAR will distribute for ADS/Transicoil's complete line of aftermarket avionics equipment, liquid crystal displays (LCD) and motion control products. ADS/Transicoil's products support a wide range of aircraft platforms and models, including aircraft manufactured by Boeing, Airbus, Embraer, Gulfstream and others. The company is also a sole-source supplier to major tier-one and tier-two suppliers including Honeywell Aerospace, Rockwell Collins, Thales Aerospace and GE Aviation.

"This distribution agreement complements the strengths of both companies in serving the aircraft systems and components needs of commercial aviation customers around the world, said John Holmes, Vice President and General Manager of AAR Allen Asset Management. "Combined, ADS/Transicoil's best-in-class avionics, displays and motion control product lines and AAR's distribution and supply chain expertise will enable us to more effectively support our mutual customer base."