THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

AAR Corporation (AIR)

9/1/2005 Proxy Information

Mr. Eichner, a director of the Company and Chairman of the Board, provides consulting services to the Company pursuant to a consulting agreement that expires on May 31, 2006, under which he receives a quarterly consulting fee in the amount of $25,000. Mr. Eichner will be retiring from the Board of Directors at the conclusion of his current term on October 19, 2005. During Fiscal 2005, Mr. Eichner received $100,000 in consulting fees.

8/30/2004 Proxy Information

Ira A. Eichner is Mr. Storch's father-in-law. Mr. Eichner, a director of the Company and Chairman of the Board, provides consulting services to the Company pursuant to a consulting agreement that expires on May 31, 2006, under which he receives a quarterly consulting fee in the amount of $25,000. During Fiscal 2004, Mr. Eichner received $100,000 in consulting fees.

8/27/2003 Proxy Information

Ira A. Eichner is Mr. Storch's father-in-law. Mr. Eichner, Chairman of the Board and a former CEO, provided consulting services to the Company pursuant to a four year consulting agreement that expired on May 31, 2003 under which he received a quarterly consulting fee in the amount of $25,000. During Fiscal 2003, Mr. Eichner received $100,000 in consulting fees.

Mr. Walfish, a director of the Company, is a partner of William Blair & Company, L.L.C. (“William Blair”). William Blair, from time to time, has rendered investment banking services to the Company and received customary compensation for those services. William Blair last rendered services to the Company in Fiscal Year 2002. The Company may engage William Blair for additional services in the future.

Mr. Eichner, a director of the Company and Chairman of the Board, provided consulting services to the Company pursuant to a four year consulting agreement that expired on May 31, 2003 under which he received a quarterly consulting fee in the amount of $25,000. During Fiscal 2003, Mr. Eichner received $100,000 in consulting fees.