ADVANCED ELECTRONIC SUPPORT PRODUCTS, INC.
REPORTS RESULTS OF OPERATIONS FOR 2001

Miami, Florida, March 29, 2002 - Advanced Electronic Support Products, Inc. (NASDAQ: AESP) announced today its results of operations for the fiscal year ending December 31, 2001. Net sales in 2001 were $30.2 million, which was flat from fiscal 2000 net sales. The Company reported a loss of $4.2 million for the 2001 fiscal year ($1.05 per diluted share), compared with a net profit of $712,000 ($.18 per diluted share) for fiscal 2000. Included in the 2001 loss were a $1.5 million writeoff of goodwill associated with previously completed acquisitions and an increase in the Company’s reserves for obsolete inventory in the amount of $1.1 million.

Slav Stein, the Company’s President, stated: "2001 was a very difficult year for us. During the second quarter, we began to see signs that worsening economic conditions and increased competition in our markets was beginning to significantly impact our sales. These conditions continued throughout the balance of 2001 and continue to impact our business today, although we believe that economic conditions are slowly recovering and that sales volumes will increase in the future. During 2001, as we saw sales dropping, we began to implement an expense and head count reduction plan which we believe will help us to sustain ourselves in the continuing slower-growth environment in our industry."

Mr. Stein continued: "Notwithstanding the difficulties that we encountered during 2001, we continued our strategy of growth through acquisition as we acquired Intelek spol. s.r.o., a distributor and manufacturer of the networking connectivity products in the Czech Republic. We also continued our efforts to introduce high quality new products and position the Company for future growth."

 

Advanced Electronic Support Products, Inc. designs, manufactures, markets and distributes network connectivity products under the brand name Signamax™ 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, as well as computer connectivity products.

 

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 filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for 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 (305) 944-7710
North Miami, Florida 33131