Wood Dale, Illinois -- AAR announced today that it has received an order from BAE Systems to manufacture mobile shelters for the U.S. Army's Family of Medium Tactical Vehicles (FMTV) program.

The one-year agreement has a one-year renewal option with a combined total value of $115 million. Work is scheduled to begin November 2008.

The AAR shelters include an expansible van for a 5-ton truck and a non-expansible shop van for a 2.5-ton truck that are equipped with heaters, air conditioners and basic electrical and lighting systems. The shelters are used as maintenance shops, parts warehouses, command and control centers, and mobile offices to support and sustain operations in the field.

“We are proud to be selected by BAE Systems to provide mobility products that are now an integral part of the U.S. Army’s ground operations," said David P. Storch, Chairman and Chief Executive Officer of AAR CORP. “AAR shelters play an important role in the Army’s ongoing efforts to execute and support ground activity, improve mobility and employ a more flexible deployment strategy.”

The shelters will be built by AAR’s Mobility Systems division, which designs, builds, integrates and supports rapid deployment equipment, expeditionary systems and command and control systems for defense customers and prime contractors.

BAE Systems’ Mobility and Protection Systems (M&PS) produces the FMTV at its facility in Sealy Texas. The FMTV is the Army’s main medium tactical in the Army’s 2.5- and 5-ton cargo vehicle class. More than 40,000 FMTVs have been produced in 21 variants during the vehicle’s 18-year production run.

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 and Overhaul; Structures and Systems; and Aircraft Sales and Leasing.

AAR
29.10.2008