Action Performance, Joe Gibbs Racing Extend Licensing Agreement Through 2009; Includes Appearances, Endorsements by Bobby Labonte and Tony Stewart.

Business Editors/Sports Writers

PHOENIX--(BUSINESS WIRE)--Jan. 3, 2002

Action Performance Companies, Inc. (Nasdaq NM: ACTN), the leader in the design, marketing, promotion, and distribution of licensed motorsports merchandise, and Joe Gibbs Racing, Inc., through its in-house licensing agency, Redline Sports Marketing, Inc., today announced the extension of their existing licensing and promotional agreement through 2009, which includes personal appearances and product endorsements by popular Joe Gibbs Racing team drivers, Bobby Labonte and Tony Stewart. Also under the extended agreement, Action Performance signage and logos will appear on drivers' uniforms and team haulers.

Initially scheduled to expire at the end of 2002, the licensing agreement has been extended through December 31, 2009, subject to achieving certain performance standards.

"We are thrilled to extend our relationship with Action Performance," remarked Joe Gibbs. "Fred and his leadership team have been great partners over the years, and their leadership and innovation have given our fans exciting, quality licensed products for the past ten years. We can now look forward to them providing that same service for many more to come."

"Joe Gibbs Racing is one of NASCAR's premier racing teams and includes two of the most successful drivers in NASCAR racing," commented Fred Wagenhals, Action Performance chairman, president and CEO. "We look forward to working closely with Bobby, Tony and the entire team in utilizing their continued racing success and popularity to increase their commercial opportunities and further promote the sport of NASCAR racing to a large and ever-growing audience of racing fans and enthusiasts."

About Action Performance:

Action Performance Companies, Inc. is the leader in the design, marketing, promotion and distribution of licensed motorsports merchandise. Its products include a broad range of motorsports-related die-cast car replica collectibles, apparel, souvenirs, and other memorabilia. The Company markets and distributes products through a variety of channels, including trackside at racing events, a worldwide network of wholesale distributors and specialty dealers, QVC, the Racing Collectables Club of America (RCCA), goracing.com, and mass retail department stores and chains.

This press release contains forward-looking statements regarding the Company's marketing agreements and promotional activities and opportunities. The Company's actual activities and results could differ materially from those set forth in the forward-looking statements. Factors that might cause such differences include, among others, the ability of the parties to execute the agreement and meet performance standards, the occurrence and related effects of terrorist or other hostilities, competitive pressures, acceptance of the Company's products and services in the marketplace, the success of new marketing programs, and other risks discussed in the Company's Form 10-K dated September 30, 2001, on file with the U.S. Securities and Exchange Commission.