FOR IMMEDIATE RELEASE

AESP, Inc. Reports Sale of its Norwegian Subsidiary 

Miami, Florida, August 26, 2004- AESP, Inc (OTCBB: AESP) today announced that it has sold the stock of its Norwegian subsidiary, Jotec AESP AS. The stock was sold for nominal consideration. The new buyer assumed the liabilities of Jotec, including its accounts payable and its bank debt. The Company expects to collect a receivable that is due from Jotec in the approximate amount of $250,000 in the near future. The Company expects to take a charge in the approximate amount of $300,000 relating to the sale in the third quarter of 2004.

As part of the sale, Jotec transferred to the Company the stock of Lanse AESP AS. Certain assets of Lanse were recently sold and the Company is currently in the process of collecting the remaining assets of Lanse, which consist primarily of its accounts receivable. The Company expects to recover approximately $175,000 through this winding down process over the next 60 days. The Company will also receive payments from the purchaser of the assets of Lanse over the next two years aggregating $90,000.

Slav Stein, the Company’s President and CEO, stated:  “This sale is an important step towards our goal of divesting our unprofitable operations in Europe. Jotec has posted significant operating losses during the past two years. We have also recently sold certain assets of our other Norwegian subsidiary, Lanse, and we are in the process of winding down its remaining operations.  This process should be substantially complete by the end of September. Additionally, we have closed the unprofitable operations of one of our German subsidiaries, AESP GmbH, in July 2004.”

AESP, Inc. designs, manufactures, markets and distributes network connectivity products under the brand name Signamax as well as customized solutions for original equipment manufacturers worldwide. For additional Company information, visit our websites, www.aesp.com, www.Signamax.com and www.Signamax.de.

Safe Harbor Disclosure under the 1995 Securities Litigation Reform Act.

This news release contains forward-looking statements, which involve risks and uncertainties. The Company’s actual future results could differ materially from the results anticipated herein. For information regarding factors that could impact the Company’s future performance, see the Company’s future filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for 2003 and its Quarterly Report on Form 10-Q for the second quarter of 2004.

Signamax is a trademark of AESP, Inc. in the United States and/or other countries.

For further information, please contact:
Slav Stein, President & CEO                                           AESP, Inc.
Roman Briskin, Executive Vice President                        1810 NE 114^th St.
John F. Wilkens, Chief Financial Officer                          North Miami Beach, FL 33181
                                                                                    (305) 944-7710