AeroGrow Reports Results for Quarter Ended June 30, 2009

BOULDER, CO--(Marketwire - August 17, 2009) - AeroGrow International, Inc. (OTCBB: AERO)
("AeroGrow" or the "Company"), makers of the AeroGarden® line of indoor
gardening products, announced results for the quarter and year ended June
30, 2009.

For the quarter ended June 30, 2009, AeroGrow reported net revenue of $3.0
million, down 56% from the quarter ended June 30, 2008. The Company also
reported a net loss for the quarter of $1.1 million, or -$0.08 per share, a
$1.7 million improvement over last year's net loss of $2.8 million in the
same period.

"The continued weak economy, our seasonal summer slowdown, and our cutback
to all but the most efficient marketing spend, all contributed to the
revenue decline," said AeroGrow CEO Jerry Perkins. "However, the impact of
our cost reduction initiatives, including the dramatic reductions in
headcount and overhead spending we've implemented, is also quite evident.
Year over year, our personnel costs dropped almost in half. We also
reduced our fulfillment costs, office expenses, travel, and contract
services, along with most other overhead costs. This led to a 37%
reduction in our operating loss despite lower revenue.

"As previously announced, we also made major improvements to our balance
sheet by issuing preferred stock and restructuring our debt arrangements.
The improved capitalization and the right-sizing of our business were
necessary given the depth and duration of the economic downturn and the
resulting impact on the demand for discretionary products."

Summary Results of Operations - Three Months Ended June 30, 2009

The quarter ended June 30, 2009, is AeroGrow's first quarter of the fiscal
year. The following table sets forth, as a percentage of sales, our
unaudited quarterly financial results for the three months ended June 30,
2009, and the three months ended June 30, 2008:

Three Months Ended June 30,
----------------------------
2009 2008
------------- -------------
Revenue
Product sales - retail, net 29.1% 39.3%
Product sales - direct to consumer, net 67.5% 49.7%
Product sales - international, net 3.4% 11.0%
------------- -------------
Total sales 100.0% 100.0%

Operating expenses
Cost of revenue 62.8% 54.9%
Research and development 11.6% 10.8%
Sales and marketing 38.9% 51.3%
General and administrative 42.8% 22.6%
------------- -------------
Total operating expenses 156.1% 139.6%
------------- -------------
Other (income) expense, net -20.5% 2.3%
Net Loss -35.6% -41.9%
============= =============

For the three months ended June 30, 2009, our sales totaled $2,979,693, a
55.7% decrease from the same period in the prior year. The decline in
sales reflected lower sales in each of our channels of distribution,
principally because of the decline in economic activity associated with the
global recession, which adversely affected the levels of consumer spending
and retailer procurement relative to the prior year period. In addition,
because of the general economic conditions and a low anticipated return on
investment, we elected to reduce our spending on advertising and promotions
in our direct-to-consumer business, causing a further reduction in these
sales, but ultimately contributing to a reduced operating loss. Sales of
AeroGardens declined 68.2% year-over-year; however, sales of seed kits and
accessories, which represent recurring revenue related to cumulative sales
of AeroGardens, declined by only 19.7%. As a result, sales of seed kits
and accessories increased to 46.8% of total revenue from 25.8% in the prior
year period.

The gross margin for the three months ended June 30, 2009, was 37.3% as
compared to 45.1% for the prior year period. The decline reflected changes
in channel, customer and product mix, as well as the impact of fixed
facility costs in our Indianapolis, Indiana, manufacturing and distribution
facility that was opened in July 2008, on a lower revenue base in the
current year period. Operating expenses other than cost of revenue were
reduced $2,913,756, or 51.2%, from the prior year reflecting cost savings
initiatives, staffing reductions, and reduced spending on advertising and
promotion.

The loss from operations totaled $1,670,366, which was $990,386 lower than
the prior year loss from operations of $2,660,752. The reduced loss
reflected the decrease in operating expenses other than cost of revenue,
which more than offset the combined impact of lower sales and gross margin
relative to a year earlier.

Other income totaled $608,634 as compared to other expense of $156,597 in
the prior year, principally reflecting the impact of approximately $807,310
in gains that were recognized during the three months ended June 30, 2009,
to reflect discounts negotiated on certain accounts payable balances,
partially offset by higher interest expense resulting from a higher average
level of debt outstanding.

The net loss for the three months ended June 30, 2009, was $1,061,732 as
compared to a $2,817,349 net loss in the same period a year earlier.

CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

Three months ended June 30,
----------------------------
2009 2008
------------- -------------
Revenue
Product sales $ 2,979,693 $ 6,720,081

Operating expenses
Cost of revenue 1,869,805 3,686,823
Research and development 344,198 725,415
Sales and marketing 1,159,796 3,449,883
General and administrative 1,276,260 1,518,712
------------- -------------
Total operating expenses 4,650,059 9,380,833
------------- -------------

Loss from operations (1,670,366) (2,660,752)

Other (income) expense, net
Interest (income) (80) (1,050)
Interest expense 198,998 157,647
Other (income) (807,552) --
------------- -------------
Total other (income) expense, net (608,634) 156,597
------------- -------------

Net loss $ (1,061,732) $ (2,817,349)
============= =============

Net loss per share, basic and diluted $ (0.08) $ (0.23)
============= =============

Weighted average number of common
shares outstanding, basic and diluted 13,039,373 12,100,387
============= =============

CONDENSED BALANCE SHEETS
(Unaudited)

June 30, 2009 March 31, 2009
-------------- --------------
ASSETS
Current assets
Cash $ 3,009,887 $ 332,698
Restricted cash 438,396 438,331
Accounts receivable 870,720 2,278,052
Notes receivable 139,000 --
Notes receivable, related party 612,000 --
Other receivables 215,326 332,059
Inventory 7,417,337 8,350,135
Prepaid expenses and other 309,750 565,454
-------------- --------------

Total current assets 13,012,416 12,296,729
Property and equipment 1,549,651 1,768,369
Other assets
Intangible assets 233,063 231,590
Deposit 110,776 110,776
Deferred debt issuance costs 154,674 201,726
-------------- --------------
Total other assets 498,513 554,092
-------------- --------------
Total Assets $ 15,060,580 $ 14,609,190
============== ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
Current liabilities
Current portion - long term debt $ 6,228,484 $ 1,099,060
Accounts payable 4,364,077 8,338,559
Accrued expenses 1,917,727 2,318,670
Customer deposits 31,179 246,728
Deferred rent 53,155 57,283
-------------- --------------
Total current liabilities 12,594,622 12,060,300
Long term debt 1,406,878 5,547,144
Long term debt - related party -- 1,233,371
Stockholders' equity
Preferred stock 7 --
Common stock 12,422 13,343
Additional paid-in capital 52,049,981 45,696,630
Accumulated (deficit) (51,003,330) (49,941,598)
-------------- --------------
Total Stockholders' Equity (Deficit) 1,059,080 (4,231,625)
-------------- --------------

Total Liabilities and Stockholders' Equity
(Deficit) $ 15,060,580 $ 14,609,190
============== ==============

SALES BY CHANNEL
(Unaudited)

Three Months Ended June 30,
------------------------------
2009 2008
-------------- --------------
Revenue
Product sales - retail, net 29.1% 39.3%
Product sales - direct to consumer, net 67.5% 49.7%
Product sales - international 3.4% 11.0%
-------------- --------------
Total sales 100.0% 100.0%

Three Months Ended June 30,
------------------------------
2009 2008
-------------- --------------
Revenue
Product sales - retail, net $ 868,263 $ 2,642,575
Product sales - direct to consumer, net 2,010,243 3,339,410
Product sales - international 101,187 738,096
-------------- --------------
Total sales $ 2,979,693 $ 6,720,081
============== ==============

SALES BY PRODUCT CATEGORY
(Unaudited)

Three Months Ended June 30,
----------------------------
2009 2008
------------- -------------
Product Revenue
AeroGardens $ 1,584,308 $ 4,983,416
Seed kits and accessories 1,395,385 1,736,665
------------- -------------
Total $ 2,979,693 $ 6,720,081
============= =============

% of Total Revenue
AeroGardens 53.2% 74.2%
Seed kits and accessories 46.8% 25.8%
------------- -------------
Total 100.0% 100.0%
============= =============

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 foolproof, dirt-free indoor gardens. AeroGardens allow 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, 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 indoor garden 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.