Action Performance Extends Exclusive Licensing Agreement With Champion Dale Earnhardt Jr.

PHOENIX--(BUSINESS WIRE)--Jan. 13, 1999--Action Performance Companies Inc. (Nasdaq/NMS:ACTN) Wednesday announced that it has extended its current exclusive licensing agreement with 1998 NASCAR Busch Series champion Dale Earnhardt Jr. through the year 2005.

The son of seven-time NASCAR Winston Cup Series champion Dale Earnhardt and grandson of National and International Motorsports Hall of Fame member Ralph Earnhardt, Dale Jr. already has earned legendary status in his own right.

In addition to winning the 1998 Busch Series title, in January he received the Al Holbert Jr. Memorial Award as driver of the year, making him the first third-generation champion in NASCAR history.

For the 1999 race season, Dale Jr. will continue to compete in the NASCAR Busch Series and also in five Winston Cup races. In 2000, he will make the transition to the Winston Cup Series full time. As Action focuses on upcoming seasons and the future of motorsports in general, the contract demonstrates the company's confidence that Dale Jr.'s popularity with fans will continue to grow.

Under the terms of the contract, the current licensing and endorsement agreement will extend through the year 2005. Action will retain the exclusive rights to license and distribute all categories of licensed merchandise, including die-cast collectible cars, toys, games, action figures, apparel items and other products.

Said Fred W. Wagenhals, Action chairman, president and chief executive officer, "Like his father and grandfather before him, Dale Earnhardt Jr. is a true champion, and Action is proud to be linked with this rising star. As we enter a new millennium, he represents the future of motorsports."

Said Dale Earnhardt, "Action's commitment to supporting drivers' careers, promoting motorsports and keeping fans excited is unparalleled. My own long standing relationship with Action Performance has been extremely positive, and I'm glad to see that relationship extend to my son."

Said Dale Earnhardt Jr., "1998 was an exciting year for me, and Action did a great job with helping to get the fans excited about the race against my father at the Coca-Cola 500 race in Japan. I'm glad to be working with the Action team, and I'm confident the next few years will be just as exciting."

In a related development, Don Hawk, the manager for Dale Earnhardt Jr., has resigned as a director of Action Performance.

Hawk said, "It is with great regret that I have resigned from the Action board of directors. The very close and mutually beneficial relationship among Action, Dale and Dale Jr., could result in perceived conflicts of interest, which I want to avoid. I look forward to maintaining my personal and professional relationship with Action Performance."

Said Fred Wagenhals, "We will miss Don's insight and guidance as a board member, but we will continue to call upon him in the future as a valued advisor."

Action Performance Companies Inc. is a worldwide 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 its products through a variety of channels, including the 153,000-member Racing Collectables Club of America (RCCA), trackside at racing events, mass retail department stores, and a worldwide network of wholesale distributors and specialty dealers.