Action Performance Announces Extension of Exclusive Licensing Agreement Between Apparel Manufacturer VF Knitwear Inc. and Chase Racewear LLC.

PHOENIX--(BUSINESS WIRE)--Feb. 11, 1999--Action Performance Companies Inc., (Nasdaq/NMS:ACTN) Thursday announced that the company's subsidiary Chase Racewear LLC has signed a ten-year renewable extension of its exclusive licensing agreement with VF Knitwear Inc., a subsidiary of VF Corp. (NYSE:VFC), the largest publicly-held apparel manufacturer in the world.

Under the terms of the agreement, VF Knitwear now holds the exclusive right to use the Chase Authentics(R) brand for all motorsports-related apparel products distributed through major department stores, traditional apparel stores and sport and athletic specialty stores.

In exchange, Chase will receive royalties based on a percentage of VF Knitwear's sales of Chase Authentic-branded apparel, with the royalty percentage increasing as VF Knitwear's sales exceed certain thresholds.

The highly successful Chase Authentics brand of apparel is exclusively endorsed as the authentic trackside apparel of NASCAR and top NASCAR drivers such as Jeff Gordon, Dale Earnhardt, Rusty Wallace, Dale Jarrett, Bobby Labonte and Terry Labonte.

Said Fred W. Wagenhals, Action chairman, president and chief executive officer, "We are extremely pleased to extend our relationship with VF Knitwear as a key retail partner. With VF Knitwear, we are able to greatly expand the market presence of the Chase Authentics brand of apparel in stores nationwide."

Said Dan MacFarlan, VF Knitwear Group chairman, "We are excited about the prospect of working with Action, NASCAR and the industry's top drivers to capitalize on our success in the fastest growing sport in America. We believe this agreement clearly demonstrates our leadership in NASCAR apparel to the markets we serve."

VF Corp. is the world's largest publicly owned apparel company and a leader in jeanswear, intimate apparel, knitwear, workwear, playwear, daypacks and swimwear. Its principal brands include Lee, Wrangler, Riders, Rustler, Maverick, Vanity Fair, Vassarette, Bestform, Lily of France, Lee Sport, Chase Authentics, Healthtex, Jantzen, Jansport and Red Kap.

Action Performance Companies Inc., is the leader in the design, marketing, 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 the 156,000-member Racing Collectables Club of America (RCCA), online through SpeedMall at goracing.com, trackside at racing events, mass retail department stores, and a worldwide network of wholesale distributors and specialty dealers.

Note to Editors: This press release contains forward-looking statements. The company's actual results could differ materially from those set forth in the forward-looking statements.

Factors that might cause such a difference include, among others, competitive pressures, the company's ability to successfully implement e-commerce initiatives, constantly changing technology, acceptance of Action's products and services in the marketplace and other risks detailed in the company's Securities and Exchange Commission filings, including the company's Form 10-K/A dated Sept. 30, 1998.