ADVANCED ELECTRONIC SUPPORT PRODUCTS, INC.

REPORTS PRELIMINARY 2001 FOURTH QUARTER AND FISCAL YEAR RESULTS

Miami, Florida, March 8, 2002 -Advanced Electronic Support Products, Inc. (NASDAQ: AESP), today reported its fourth quarter and fiscal year end 2001 results of operations on a preliminary basis. The Company reported that it estimates that fourth quarter and fiscal 2001 revenues will be approximately $9.2 million and $30.3 million, respectively, and that its estimated net loss for the 2001 fourth quarter and fiscal year will be approximately $2.0 million and $4.0 million, respectively. Included in the 2001 fourth quarter and fiscal year end results are writedowns of goodwill on businesses previously acquired in the amount of $1.3 million and $1.8 million, respectively, writedowns of inventory value in the amount of $345,000 and $1.1 million, respectively and a non-cash charge in the amount of $160,000 relating to a stock option granted to a consultant during the fourth quarter of 2001.

The Company also reported that as a result of its anticipated fiscal year 2001 results of operations, it will not be in compliance with the financial covenants contained in the credit agreement with its senior lender. The Company will request that its lender waive covenant compliance at December 31, 2001. While the Company expects to receive a waiver of the covenant default (and has previously obtained similar waivers from its lender), there can be no assurance that such waiver will be obtained. If such waiver is not obtained, it could have a material adverse impact on the Company.

The Company also reported that it expects to report its final 2001 fourth quarter and fiscal year end results of operations by the end of March 2002.

Advanced Electronic Support Products, Inc. designs, manufactures, markets and distributes network connectivity products under the brand name SignamaxÔ Connectivity Systems as well as customized solutions for original equipment manufacturers worldwide. The Company offers a complete line of active networking and premise cabling products for copper and fiber optic based networks.

 

Safe Harbor Disclosure under the 1995 Private Securities Litigation Reform Act.

This news release contains forward-looking statements that 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 filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-KSB for 2000 and its Quarterly Report on Form 10-Q for the third quarter of 2001.

Signamax is a trademark of Advanced Electronic Support Products, Inc. in the United States and/or other countries.

 

For further information, please contact:

Slav Stein, President & CEO
Roman Briskin, Executive Vice President
Roy D. Rafalco, Chief Financial Officer

Advanced Electronic Support Products, Inc.

1810 NE 144 Street
North Miami, Florida 33131
(305) 944-7710