AeroGrow Opens Eastern Distribution Center

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Wed Aug 27, 2008 2:56pm EDT

  BOULDER, CO, Aug 27 (MARKET WIRE) -- 
AeroGrow International, Inc. (NASDAQ: AERO) ("AeroGrow" or the
"Company"), makers of the AeroGarden(R) line of indoor gardening
products, announced that it has started shipping products from its new
Distribution Center (DC) in Indianapolis, Indiana.

    The 89,000 square foot facility and associated state-of-the-art warehouse
management system were implemented in support of two primary objectives:
1) to reduce order handling costs; and 2) to decrease package delivery
time and distance, decreasing freight costs.

    The new distribution center reduces time in transit by an average of 2.2
days and offers substantial fulfillment, packing and warehouse cost
savings as well. Indianapolis was selected due to its centralized
location and proximity to the majority of our customers. Approximately
65% of AeroGrow's shipments are made to destinations in the eastern,
mid-western and south-central regions of the United States. Indianapolis
was also chosen to capitalize on the favorable labor and commercial real
estate rates associated with this market.

    The Indianapolis DC also supports the Company's rapidly growing Canadian
distribution requirements and complements AeroGrow's existing third-party
distribution center in Chino, California. The Indianapolis DC is fully
managed by AeroGrow employees.

    "In the next few months, we're not only rolling out to thousands of new
retailers, we're also starting to deliver our new, multi-SKU product lines
to our 5,100 existing retailers," said Jerry Perkins, CEO of AeroGrow.
"Having the Indianapolis DC up and running to assist with this major
product sell-in will help to dramatically lower our costs. It also gets us
much closer to our customers, enabling us to get orders out the door and
onto retail shelves in a more timely and efficient manner. We're handling
our regional direct response fulfillment out of this facility as well. The
new center also spreads our risk, making us less susceptible to the
potential negative impacts of dock closures, strikes, weather, labor
uncertainties and other factors that may exist with any single location."

    "We plan to complete over 600,000 shipments this year, so it makes sense
to operate our own distribution center and take advantage of the labor,
fulfillment and shipping efficiencies," said Mike Wolfe, AeroGrow's Vice
President of Operations. "Manufacturing companies around the globe are
getting hit by wave after wave of higher prices, and this is one of the
simplest things we could do to take control of that. Since we can save
money with every order that we fill out of our Indianapolis DC, we
anticipate that the savings will add up quickly, approaching a million
dollars over the next year."

    About AeroGrow International, Inc.

    Founded in 2002 in Boulder, Colorado, AeroGrow International, Inc. is
dedicated to the research, development and marketing of the AeroGarden(R)
line of indoor gardening products. AeroGardens feature dirt-free
technology, allowing anyone to grow farmer's market fresh herbs, salad
greens, tomatoes, chili peppers, flowers and more, indoors, year-round, so
simply and easily that no green thumb is required. See www.aerogrow.com.

    FORWARD-LOOKING STATEMENTS

    "Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Statements by Jerry Perkins, Mike Wolfe, and/or the Company,
statements regarding growth of the AeroGarden product line, optimism
related to the business, expanding sales and other statements in this
press release are forward-looking statements within the meaning of the
Securities Litigation Reform Act of 1995. Such statements are based on
current expectations, estimates and projections about the Company's
business. Words such as expects, anticipates, intends, plans, believes,
sees, estimates and variations of such words and similar expressions are
intended to identify such forward-looking statements. These statements
are not guarantees of future performance and involve certain risks and
uncertainties that are difficult to predict. Actual results could vary
materially from the description contained herein due to many factors
including continued market acceptance of the Company's products or the
need to raise additional capital. In addition, actual results could vary
materially based on changes or slower growth in the kitchen garden
appliance market; the potential inability to realize expected benefits
and synergies; domestic and international business and economic
conditions; changes in customer demand or ordering patterns; changes in
the competitive environment including pricing pressures or technological
changes; technological advances; shortages of manufacturing capacity;
future production variables impacting excess inventory and other risk
factors listed from time to time in the Company's Securities and Exchange
Commission (SEC) filings under "risk factors" and elsewhere. The
forward-looking statements contained in this press release speak only as
of the date on which they are made, and the Company does not undertake
any obligation to update any forward-looking statement to reflect events
or circumstances after the date of this press release.

    

CONTACTS:
Corporate
John Thompson
AeroGrow International, Inc.
(303) 444-7755
Email Contact

Investor
Budd Zuckerman
Genesis Select Corporation
(303) 415-0200
Email Contact

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