FOR IMMEDIATE RELEASE

AESP, Inc. Reports Completion of European Reorganization

Miami, Florida, October 20, 2004- AESP, Inc (OTCBB: AESP) today announced that it has completed the final steps in the previously announced reorganization of its European operations.

The Company announced that it has sold the stock of its Swedish subsidiary, AESP Sweden AB. The purchase price for the stock was nominal. However, the buyer assumed the majority of the liabilities of AESP Sweden, including its third party accounts payable and its bank debt, thus relieving the Company of those obligations. The Company expects to take a charge in the approximate amount of $150,000 in the third quarter of 2004 with respect to the sale of this Swedish subsidiary. 

The Company also announced that its Signamax Europe operations, which develops and supplies Signamax products to distributors in Europe, the Middle East and Africa, will now be operated out of the offices of the Company's Czech Republic subsidiary, Intelek spol. s.r.o.

Slav Stein, the Company’s President and CEO, stated:  “With the completion of the sale of our Swedish subsidiary, the previously announced sales of our Norwegian operations and the shut-down of our German operations, we have accomplished our goal of divesting our unprofitable operations in Europe. Our remaining European distribution operation, Intelek spol. s.r.o., has been profitable since its acquisition in 2001."

Mr. Stein continued: "In connection with the sales of our Norwegian and Swedish subsidiaries, we entered into distribution agreements with the buyers of those subsidiaries for them to continue to sell Signamax products in their territories. These agreements contain required minimum purchase levels."

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