FOR IMMEDIATE RELEASE 

AESP, INC.
ANNOUNCES NEW DISTRIBUTOR AGREEMENT AND EXPENSE CUTS 

Miami, Florida – July 7, 2003 – AESP, Inc. (NASDAQ: AESP) today announced that it has signed a multi-year supplier agreement with one of the largest electrical distributors in the United States and has expanded its cost reduction efforts. 

The recently executed supplier agreement calls for approximately $1.3 - $1.5 million of initial shipments per year of Signamax Category 5e and Category 6 patch cords and fiber assemblies under private label . The Signamax Premise Connectivity product line has recently been expanded to include these new, higher-performance Category 5e and Category 6 network infrastructure cabling products. The agreement, which runs for an initial term of eighteen months, is renewable for successive one-year terms.

Stephen Daily, Vice-President and General Manager of the Company’s Signamax division, stated, “We are pleased that one of the largest electrical distributors has chosen Signamax products, recognizing that our Category 5e and Category 6 cabling products provide superior performance, reliability and value in enterprise network infrastructures. Both cabling systems employ state-of-the-art components designed to make installation easier and more cost effective.” 

Despite this new supplier agreement, the Company recognizes that its U.S. market remains weaker than expected and therefore, has decided to redouble its cost reduction efforts. Slav Stein, the Company’s President and CEO, stated, “Effective immediately, we are taking steps to significantly reduce our costs, particularly in the United States. In that regard, we are implementing across-the-board reductions in our salaries in the U.S., including base salary cuts of 20% for myself and for Roman Briskin, our Executive Vice President. We believe that these cuts will reduce our U.S. overhead by more than $500,000 per annum and will help us reach our goals of breakeven results in 2003 and a return to profitability in 2004.” 

AESP, 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 based networks, along with 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 previous and future filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for 2002.