AAR Sources Replacement Engine for U.S. Department of Energy

Provides cost-effective alternative to power Nuclear Security Administration DC-9

WOOD DALE, Illinois – AAR (NYSE: AIR), the primary logistics, supply chain and aircraft support services contractor for the U.S. Department of Energy’s National Nuclear Security Administration (NNSA), will provide the NNSA with a cost-effective replacement engine to power an NNSA DC-9 aircraft.

AAR’s Aircraft Turbine Center operating unit conducted research and identified a pool of potential engines to replace the aircraft’s aging engine before making its final recommendation. The replacement engine is expected to be installed by October of this year and will provide the NNSA with a cost-effective alternative to keeping an aging engine operated by the NNSA operational.

“We helped the NNSA weigh a number of alternatives for overhauling their engine and using a replacement and determined the cost to maintain one of their current engines was prohibitive,” said Donald J. Wetekam, Senior Vice President, Government and Defense Business Development. “Our in-depth experience with aircraft and engines enabled us to add value to the NNSA’s operations and we take great pride in helping the NNSA control costs while managing these national resources cost-effectively and safely.”

In December 2011, AAR entered an agreement with the DOE to provide logistics and aircraft support for the NNSA’s fleet of Boeing 737-400 passenger/cargo (Combi), DC-9 Combi and Learjet aircraft, strengthening AAR’s position as a prime contractor in the global government and defense market. The contract has a one-year base period with four one-year renewal options for a total estimated value of $18.5 million. Work is performed by a dedicated program team managed by AAR’s Aircraft Services division in Oklahoma City.

About NNSA

Established by Congress in 2000, NNSA is a semi-autonomous agency within the U.S. Department of Energy responsible for enhancing national security through the military application of nuclear science. NNSA maintains and enhances the safety, security, reliability and performance of the U.S. nuclear weapons stockpile without nuclear testing; works to reduce global danger from weapons of mass destruction; provides the U.S. Navy with safe and effective nuclear propulsion; and responds to nuclear and radiological emergencies in the U.S. and abroad. Its aircraft are used to provide safe and secure transport of nuclear weapons components, nuclear limited life components and federal agent task forces.