Action Performance Initiates Dividend Policy; Dividend of $.03 Per Share Approximates 4 Percent of Expected Fourth Quarter Earnings.

Business Editors

PHOENIX--(BUSINESS WIRE)--Sept. 25, 2002

Action Also Details Stock Buyback Strategy

Action Performance Companies, Inc. (NYSE: ATN) today announced the initiation of an ongoing quarterly dividend policy with an initial dividend of $0.03 per share.

The fourth quarter 2002 dividend will be payable on October 28, 2002 to shareholders of record as of October 10, 2002.

Action's directors decided at their regular Board Meeting on September 19, 2002, to implement a dividend policy after reviewing current business conditions and future prospects. For the fourth quarter of 2002, ending Sept. 30, the dividend would represent approximately 4 percent of the company's earnings guidance of $0.73 per share.

"We're very comfortable with Action's strong balance sheet and have great confidence in the company's growth prospects," said Action Chairman and CEO Fred Wagenhals. "Action is achieving double-digit growth in revenues, and even faster growth in earnings, EBITDA and cash flow. Passing on a portion of the company's cash flow as a return to our shareholders is consistent with our ongoing focus on shareholder value."

Action expects to generate EBITDA of more than $100 million during the fiscal year ending September 30, 2002. The company's cash and equivalents position was $76.6 million on June 30, 2002.

"Action's business model has generated significant cash flow which is expected to increase in the future," explained Action CFO David Martin. "We are internally funded; we have no bank debt, and we have sufficient cash to retire our convertible debentures. This dividend rate will result in annual dividend of approximately $2.1 million. The company will have more-than-adequate future cash flow to sustain this dividend and continue our plans for aggressive organic growth and modest acquisitions."

Martin further commented that, "Action has a stock buyback authorization in place to acquire 1,000,000 shares, and has used that authorization for share buybacks from time to time, including the 80,000 shares acquired in July 2002 for $1.9 million. We will continue considering buybacks in opportunistic situations that support our strategy for improving shareholder value while achieving substantial growth."

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 sales and distribution channels, including QVC, the Racing Collectables Club of America (RCCA), goracing.com, trackside at racing events, mass retail department stores, and a worldwide network of wholesale distributors and specialty dealers. Additional information about Action Performance can be found at www.action-performance.com.

This press release contains forward-looking statements regarding expectations for revenues, EBITDA, net income, cash flow and capital and other funding needs, growth strategy, operational plans, and guidance for future periods. The Company's actual results could differ materially from those set forth in these forward-looking statements. Factors that might cause such differences include, among others, the ability of the Company to successfully execute its business plan, competitive pressures, acceptance of the Company's products and services in the marketplace, the success of new marketing programs, the Company's ability to successfully execute its agreements with other parties, 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.