Action Performance and Hasbro Extend Exclusive Global Partnership Through 2006.

PHOENIX--(BUSINESS WIRE)--Aug. 24, 1999--

Action Performance Companies, Inc. (Nasdaq:ACTN), announced today that it has extended its partnership agreement with Hasbro, Inc. (NYSE:HAS) through 2006.

The companies' previously established domestic retail partnership promoting Hasbro's Winner's Circle(R) Brand resulted in a dramatic increase in product sales that has catapulted the brand to the number one racing-related die-cast line in mass retail. The agreement was extended and terms expanded to capitalize on global growth opportunities for the brand.

Under the terms of the agreement, Action Performance is now the exclusive licensing acquisitions agent for Hasbro's extensive range of toys, games and puzzle product lines across all forms of motorsports worldwide, including NASCAR, NHRA, World of Outlaws, CART, Formula One, World Super Bike, etc. The agreement also provides Hasbro with a first right of refusal to exclusively utilize all licensing rights acquired by Action over the duration of the partnership. Hasbro also has an option for an additional three-year extension that would align the companies throughout the first decade of the new millennium.

Fred W. Wagenhals, Action chairman, president and CEO said, "The significant long-term strategic value of combining the respective strengths and expertise of Action and Hasbro is undeniable. We've already witnessed phenomenal growth and believe there remain enormous potential to maximize our joint marketing, business development and promotional capabilities and increase sales performance and brand recognition on a global scale."

Herb Baum, Hasbro president and chief operating officer said, "Hasbro's Winner's Circle has grown to become a preeminent brand name in motorsports die-cast toys and related product categories. This agreement solidifies our commitment to maintaining that growth and ensures that consumers will have access to the most comprehensive range of products associated with the top drivers and teams across all forms of motorsports worldwide."

Action also announced that Mr. Baum has been nominated to its Board of Directors and that Hasbro has committed to make an additional investment in Action's stock through open market transactions.

Hasbro is the worldwide leader in the design manufacture and marketing of toys, games, interactive software, puzzles and infant products. Both internationally and in the U.S., its Playskool(R), Kenner(R), Tonka(R), Milton Bradley(R), Parker Brothers(R), OddzOn(R), SuperSoaker(R), Tiger(TM), Hasbro Interactive(TM) and Galoob(R) products, provide children and families with the highest quality and most recognizable toys and games in the world. For more information on Hasbro's Winner's Circle and other Hasbro products, visit www.thewinnerscircle.com or www.hasbro.com.

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 channels, including the 167,000-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.

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.