Action Performance Invests in LBE Technologies and Enters Into Strategic Alliance for Exclusive Retail Pit Stops.PHOENIX--(BUSINESS WIRE)-- April 20, 1998 - Action Performance Companies, Inc. (Nasdaq NM: ACTN ACTN Action ACTN Acetone ) today announced that the Company has entered into a strategic alliance with privately-held LBE LBE - Language-Based Editor Technologies, Inc. (LBET), a NASCAR-licensing partner, leading-edge technology developer and retail entertainment firm. Based in Cupertino, California, LBET is the creator and operator of NASCAR NASCAR (National Association for Stock Car Auto Racing), organization that sanctions American stock-car races, est. 1948. It held its first race in Daytona Beach, Fla. Silicon Motor Speedway, a unique interactive entertainment center recently launched in the Mall of America Mall of America (also MOA, MoA, or the Megamall) is a shopping mall located in the Twin Cities suburb of Bloomington, Minnesota. It is just southeast of the junction of Interstate 494 and Minnesota State Highway 77, and is across the interstate from the , Bloomington, Minnesota Bloomington is a city in Hennepin County, Minnesota, and a southern suburb of Minneapolis. As of 2005, it had a population of 84,347, making it the largest Twin Cities suburb, and the fifth largest city in the state[1]. , and is expanding into a network of interactive NASCAR racing The NASCAR Racing series of video games, developed by Papyrus, started in 1994 and ended with the release of NASCAR Racing 2003 Season in 2003. Later NASCAR games were released by Electronic Arts, who took over the official sport license. entertainment centers in high-traffic malls nationwide. Under the five-year agreement, Action gains exclusive merchandising rights for product distribution and sales of its licensed apparel and souvenirs, die-cast collectibles and other motorsports memorabilia consumer items in the NASCAR Silicon Motor Speedway centers. Licensed merchandise will be prominently displayed in a special "Action Pit Stop" retail section identified by distinctive signage within each of the entertainment driving centers and solely operated by LBET. Under terms of the alliance, Action agreed to make a $1 million equity investment in LBET. Said Action Performance Chairman, President and Chief Executive Officer Fred W. Wagenhals, "We are very pleased with this alliance. LBE Technologies is an outstanding growth company that has come up with an exciting entertainment concept that in a short period of time has already proven to be very popular with race fans and highly profitable as well. Our partnership offers valuable synergies to both companies in promoting NASCAR and spreading the excitement of motor-sports to potential new fans and providing quality entertainment products to existing ones. From a business standpoint, this partnership expands Action's retail distribution channels and offers LBET increased revenue opportunities and an enhanced retail environment for visitors to NASCAR Silicon Motor Speedway centers." Said LBET President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Damon Danielson, "The LBET interactive racing team is pleased to be associated with such a quality company as Action Performance, a powerhouse in licensing, merchandising and marketing motorsports-related consumer products. This strategic alliance offers outstanding opportunities for both companies." LBET opened the first entertainment center September 4, 1997, where its popularity at the Mall of America has created more than 6-hour waits to drive one of the 12 racing simulators. A second NASCAR Silicon Motor Speedway racing center is scheduled to open at the Woodfield Mall Woodfield Mall is a shopping mall located in the Chicago suburb of Schaumburg, Illinois at the intersection of Golf Road and Illinois Route 53. Woodfield opened on September 9, 1971 with 59 stores, growing to 189 stores with 1. in suburban Chicago in May, while four other speedway openings are planned for locations in Southern California, Colorado, North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , and Texas during 1998. LBET plans to open 12 additional sites in major cities nationwide in 1999. Ultimately, LBET and NASCAR plan to expand the virtual-speedway driving entertainment center concept to as many as 100 locations worldwide. The ultimate goal of the licensing partners is to build an entire speedway network that will enable virtual drivers from different locations to race head on for cash and prizes. Using a proprietary simulation system, 12 fully equipped, two-seater, 700-horsepower NASCAR stock car racers, each mounted on a full-motion simulation platform, provide authentic acceleration, banking and bumping sensations. The cars, which are capable of simulating speeds up to 200 mph, are computer linked with each other and with 18 additional on-screen on·screen or on-screen adj. & adv. 1. As shown on a movie, television, or display screen. 2. Within public view; in public. race "drones" that add to the competitive door-handle-to-door-handle racing atmosphere and replicate the NASCAR Winston Cup racing experience on various NASCAR Winston Cup circuit tracks. The simulators also allow drivers to race at varying skill levels ranging from rookie to veteran. 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 apparel, souvenirs, die-cast car replica collectibles and other memorabilia. The Company markets and distributes products through a variety of channels, including the 122,000-member Racing Collectables Club of America (RCCA RCCA Root Cause and Corrective Action (to prevent the recurrence of a defect by eliminating its cause) RCCA Rural Community College Alliance RCCA Roller Coaster Corporation of America RCCA Rod Cluster Control Assembly ), trackside track·side n. The area near a track, especially a racetrack. 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. Christopher Besing, (602) 337-3703 Fred Wagenhals, (602) 337-3710 or Silverman Heller Associates Eugene G. Heller/Glenn Schoenfeld (310) 208-2550 |
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