AeroGrow Opens Eastern Distribution Center

Indianapolis Distribution Center Targets 7-Figure Cost Savings


BOULDER, CO--(Marketwire - August 27, 2008) - AeroGrow International, Inc. (NASDAQ: AERO) ("AeroGrow" or the "Company"), makers of the AeroGarden® 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® 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.

Contact Information: CONTACTS: Corporate John Thompson AeroGrow International, Inc. (303) 444-7755 Investor Budd Zuckerman Genesis Select Corporation (303) 415-0200