FOR IMMEDIATE RELEASE

AESP, INC. ANNOUNCES INTENDED WARRANT DIVIDEND

Miami, Florida, October 29, 2002 - AESP, Inc. (NASDAQ: AESP ) today announced that it intends to distribute to its shareholders a common stock purchase warrant to purchase one share of the Company's common stock for each share of the Company's common stock owned by each shareholder as of the record date of the dividend distribution. The warrants will be exercisable for a one year period following the effectiveness of a registration statement registering the sale of the shares of common stock underlying the warrants. The Company plans to file the registration statement to register the shares of common stock underlying the warrants by the end of the fourth quarter of 2002. The exercise price of the warrants will be as follows:

• For the 90 day period following effectiveness, the warrants will be exercisable at an exercise price of $1.50 per share,
• For the subsequent 90 day period, the warrants will be exercisable at an exercise price of $2.50 per share, and
• For the balance of the term of the warrants, the warrants will be exercisable at an exercise price of $5.50 per share.

The record date for the warrant dividend has not yet been determined, although it is anticipated to be prior to January 31, 2003.

Any proceeds received from the exercise of the warrants will be used for general working capital purposes or for acquisitions. However, no material commitments or binding agreements have been reached with respect to any acquisitions.

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 2001.