Action Performance Adds New Collectibles Line; Acquires Majority Stake in Die-Cast Bass Fishing Boat Licensee and Manufacturer.

Business Editors & Sports Writers 

PHOENIX--(BUSINESS WIRE)--Sept. 5, 2001

Action Performance Cos. Inc. (company) (Nasdaq:ACTN), the leader in the design, marketing, promotion and distribution of licensed motorsports merchandise, today announced the expansion of its collectible die-cast product line to include die-cast 1:24 scale bass fishing boats featuring a NASCAR Winston Cup driver series and a bass professional angler signature series.

In a move to extend its successful line of licensed die-cast products and utilize its large and diversified network of distributors and retailers, Action purchased for cash and common stock warrants an 80 percent interest in a development-stage business that will manufacture and distribute collectible die-cast models of popular, high-performance bass fishing boats.

The boats will be distributed under a new Action product brand, Castaway(TM), through most of the same channels as Action's other die-cast collectibles, including QVC cable TV, QVC online and Bass Pro shops. Deliveries are expected to begin in the first quarter of fiscal 2002.

The new Castaway(TM) Bass Professional Angler Signature Series will include bass boats used and endorsed by Hank Parker and other top professional bass anglers. Parker is a two-time BASSMASTER Tournament winner and popular author, magazine writer and outdoor TV-show host.

The NASCAR Winston Cup series will include bass boats utilizing the paint schemes of Action's top drivers, including Dale Earnhardt, Dale Earnhardt Jr., Jeff Gordon, Kevin Harvick, Dale Jarrett, Bobby Labonte, Steve Park, Tony Stewart, Rusty Wallace and Michael Waltrip.

Both series of Castaway(TM) collectibles will be replicas of bass boats designed and manufactured by Forrest Wood's Ranger Boats and Tracker Marine, including Tracker Marine's Pro Craft and Nitro brands.

Action chairman, president and chief executive officer, Fred Wagenhals, commented: "Based on enthusiastic responses from our distributors regarding this new product line, the immense popularity of competitive bass fishing, and the crossover demographics of the two sports, we feel this is an untapped area which appears to hold significant sales potential.

"Over 60 million people in the U.S. participate in sport fishing, making it one of the top three outdoor sports in the United States, and one of the fastest growing as well," Wagenhals stated. "Bass fishing accounts for approximately one-half of the sport and receives extensive coverage on cable TV channels, including TNN and Outdoor Life Network.

"Furthermore, demographic studies have indicated that the No. 1 outdoor activity of NASCAR fans is fishing, with approximately 78 percent listing fishing as their primary outdoor activity," added Wagenhals.

"Therefore, we expect our new product line will appeal to a very large audience comprised of both fishing enthusiasts and NASCAR racing fans. As a result, our major distributors and retailers are excited at the prospect of leveraging their die-cast race car sales into additional sales of die-cast bass boats."

David Martin, Action Performance CFO, remarked: "This acquisition represents an excellent opportunity to extend our core business while allowing us to remain within the same operating and financial parameters that have proven so successful for our traditional die-cast race car collectibles.

"For example, a special NASCAR collectible die-cast race car sponsored by Bass Pro Shops and displaying Bass Pro Shops logos and color scheme generated one of Action's most successful sales campaigns," Martin stated. "Collectible die-cast bass fishing boats with top NASCAR Winston Cup driver endorsements and related paint schemes are expected to produce similar results.

"We estimate sales in the $6 million to $10 million range for fiscal 2002, and, based on the fact that we are first in the business and hold long-term licensing agreements with the top names and brands in the sport, we estimate our growth potential to be excellent," added Martin.

About Action Performance:

Action Performance Cos. 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 news release contains forward-looking statements regarding new products, product branding, distribution, timing of deliveries, business strategy, product appeal, potential sales, 2002 sales estimates and growth potential. The company's actual results could differ materially from those set forth in the forward-looking statements. Factors that might cause such differences include, among others, the actual impact of the acquisition on the company, competitive pressures, acceptance of Castaway(TM) products in the marketplace, the success of new marketing programs, the company's ability to successfully execute its strategy, and other risks discussed in the company's Form 10-K dated Sept. 30, 2000, on file with the U.S. Securities and Exchange Commission.