Action Performance Brings Motorsports and Hollywood Together With DreamWorks and Joe Gibbs Racing Merchandising Promotion.

PHOENIX--(BUSINESS WIRE)--May 13, 1998--Action Performance Companies Inc. (Nasdaq/NM: ACTN), Wednesday announced that the company has teamed with DreamWorks Consumer Products and Joe Gibbs Racing on a special motorsports merchandising program cross-promotional tie-in for the summer release of the film "Small Soldiers."

The film is co-produced by DreamWorks Pictures and Universal Pictures.

Licensed merchandise for the program will feature Joe Gibbs Racing's team drivers and cars -- NASCAR Winston Cup driver Bobby Labonte in his No. 18 Interstate Batteries Pontiac, NASCAR Busch Series driver Tony Stewart in his No. 44 Shell Pontiac and NHRA driver Cruz Pedregon in his Interstate Batteries Pontiac funny car.

All merchandise -- collectible die-cast, apparel and souvenir products -- will be based on the Joe Gibbs race cars' special Action-designed paint schemes featuring the "Small Soldiers" movie logo and figures.

Said Action Performance Chairman, President and CEO Fred W. Wagenhals: "We are very pleased to be partners with DreamWorks and use our marketing and licensing relationships to bring motorsports and the movie industry together in what is certainly the biggest cross-promotional merchandise program that has ever been developed between the two entertainment industries.

"After the great success we enjoyed with last year's merchandise sales from the Jeff Gordon/Universal Studios-`Jurassic Park-The Ride' promotion, we are very excited about the prospects for the `Small Soldiers' program."

Said Brad Globe, head of DreamWorks Consumer Products: "As an entertainment company, we are continually looking to broaden the appeal of our licensing and promotional programs for our properties. This partnership with Joe Gibbs Racing and Action Performance provides a great opportunity for us to bring `Small Soldiers' to the motorsports world. We feel NASCAR and NHRA fans will likewise embrace `Small Soldiers.'"

The official unveiling of the cars, which will be open to fans, is scheduled for July 1 at Universal Studios Florida in Orlando. Each of the participant drivers will race the special `Small Soldiers'-themed cars in the following races: -0-

-- Bobby Labonte, July 4, in Daytona Beach, Fla. at the Pepsi 400 NASCAR Winston Cup race at Daytona International Speedway;

-- Tony Stewart, July 11, in South Carolina, at the Myrtle Beach 250 NASCAR Busch Series race at Myrtle Beach Speedway; and

-- Cruz Pedregon in three NHRA events -- July 19, in Morrison, Colo., at the Mile-High Nationals at the Bandimere Speedway; July 26, in Sonoma, Calif., at the Autolite Nationals at Sears Point Raceway; and Aug. 2, in Seattle at the Northwest Nationals at Seattle International Raceway. -0-

Said Joe Gibbs, owner of Joe Gibbs Racing: "We are thrilled to be involved in the promotion of such a major motion picture like this unique `Small Soldiers' film. It is a great opportunity for each of our drivers, cars and sponsors to team up with DreamWorks and Action Performance on such a blockbuster merchandising promotion."

In conjunction with the DreamWorks movie promotion, Action Performance -- with its die-cast, apparel and other souvenir licensing agreements with Joe Gibbs Racing and its team's drivers -- will market a wide array of specially designed merchandise to racing fans and collectors.

Program merchandise will be available for the first time trackside during the Daytona International Speedway event and then during other major NASCAR and NHRA events throughout the summer months.

Action merchandise related to the "Small Soldiers"-motorsports promotion will also be available through Action's distribution channels and is expected to have strong consumer appeal.

Blending live-action with state-of-the-art computer animation, "Small Soldiers" is the story of a battle between a small but intrepid band of monstrous-looking creatures (Gorgonites) and a platoon of war-loving commandos (Commando Elite) -- prototypes of the most advanced action figures ever imagined. "Small Soldiers" is scheduled for release July 10.

Action Performance Companies is the leader in the design, marketing and distribution of licensed motorsports merchandise. Its products include a broad range of motorsports-related apparel, souvenirs, die-cast car replica collectibles and other memorabilia.

The company markets and distributes products through a variety of channels, including the 125,000-member Racing Collectables Club of America (RCCA), trackside at racing events, mass retail department stores and a nationwide wholesale network of approximately 5,000 specialty dealers and distributors.

CONTACT: Action Performance Companies Inc., Phoenix

Christopher Besing, 602/337-3703

Fred Wagenhals, 602/337-3710

or

Silverman Heller Associates

Eugene G. Heller/Glenn Schoenfeld, 310/208-2550