AAR Signs Contract to Supply Smoke and Fire Barriers for Boeing 737-700C Aircraft Used by the U.S. Navy

AAR Corp. announced today that its AAR Composites, a subsidiary located in Clearwater, Florida, has been awarded a contract to provide fire and smoke barriers for use on Boeing 737-700C aircraft modified for military applications and designated as the C-40A. The contract is with The Boeing Company and the final customer is the U.S. Naval Reserve .

"This contract is another example of how AAR Composites can adapt to its customers' needs through innovative, customer-focused processes from design through manufacturing," AAR Corp. President and Chief Executive Officer David P. Storch said. "We are constantly working to help our customers keep their products and systems state-of-the-art by providing them with customized design, development, fabrication, structural analysis and manufacturing. This takes advantage of our company's expertise in each of these areas."

The Naval Reserve has procured four C-40A aircraft as part of their program to replace their aging fleet of 29 C-9 aircraft, a military version of the Douglas DC-9. Each C-40A will require two smoke/fire barriers comprised of a mid-cabin barrier and a forward barrier. The C-40A is known as a "combi" aircraft because it can be configured as a cargo, passenger or combination cargo-passenger aircraft by removing the smoke/fire barriers.

Under the contract, AAR Composites will provide engineering support for structural design, manufacturing drawings, tool design and fabrication, structural analysis and the manufacture of five shipsets of barriers. The contract also includes establishing provisioning requirements to support maintenance and component replacement for parts damaged during use. Deliveries are scheduled to begin in August 2000 and run through December 2000 for the five shipsets of barriers. Financial terms of the contract were not disclosed.

AAR CORP. (NYSE: AIR) is the preeminent provider of products and value-added services to the worldwide aerospace/aviation industry. Products and services include proprietary inventory management and logistic support services which encompasses supply, repair and manufacture of spare parts and systems. Headquartered in Wood Dale, Illinois, AAR serves commercial and government aircraft fleet operators and independent service customers throughout the world.

Provided by: AAR-ATICS, Inc.