Action Performance and Hasbro deal finalized with signing of top racing drivers.

TEMPE, Ariz.--(BUSINESS WIRE)--Oct. 28, 1996--Action Performance Companies Inc. (NASDAQ/NM:ACTN) Monday announced that it has signed contracts with a number of top race car drivers to license a line of endorsed toy products through an exclusive alliance with Hasbro (ASE:HAS).

This full line of Winner's Circle(TM) toy products, which will include radio-controlled vehicles, will be jointly developed by Action Performance and Hasbro, and Hasbro will market and manufacture the products to the mass market.

Unlike Action Performance's limited-production line of collectibles, which are distinguished by their highly detailed interiors and engines, functional front suspension and movable parts, Hasbro's Winner's Circle(TM) toy line is mass-produced, more affordable, and targeted to younger motorsports enthusiasts, aged 2 to 12.

The drivers include: Dale Earnhardt, seven-time NASCAR Winston Cup Champion and GM Goodwrench Service Driver; Jeff Gordon, 1995 Winston Cup Champion and DuPont Chevrolet Driver; Ward Burton, past Rockingham Winner and MBNA Chevrolet Driver; Bobby Labonte, past Multiple Winner at Charlotte Motor Speedway, Michigan International Speedway, Driver of Joe Gibb's Interstate Batteries Chevrolet; Mike Skinner, 1995 Craftsman Truck Series Champion; Dale Jarrett, 1996 Daytona 500 Winner and Quality Care Driver; Jay Sauter, future driver of 1997 GM Goodwrench Service Truck; and Ron Hornaday, current points leader of the NASCAR Craftsman Truck Series and Driver of Dale and Teresa Earnhardt-owned, NAPA-sponsored Chevrolet truck.

Depending on the driver, the contracts range from one- to three-years in length. The new line of toys is scheduled to reach retail shelves in January 1997.

Fred W. Wagenhals, chairman, president and chief executive officer of Action Performance stated, "We are very excited about this alliance and our ability to sign these top-name drivers, whose popularity has helped drive sales of NASCAR-licensed products from $50 million in 1990 to $600 million last year, with projected sales of $770 million for 1996.

"This agreement marks the entrance by Action and Hasbro into the mass market with the driver-endorsed Winner's Circle(TM) motorsports toy products," added Wagenhals.

"We expect these agreements to generate significant annual licensing revenue for Action Performance Companies. In addition, we anticipate that the success of this alliance will attract the participation of additional racing drivers in the future."

Based in Pawtucket, R.I., Hasbro is a worldwide leader in the design, manufacture and marketing of toys, games, interactive software, puzzles, infant care and juvenile products. Both internationally and domestically, its Playskool, Kenner, Tonka, Milton Bradley, Parker Brothers and Hasbro Interactive products provide children and families with the highest-quality and most recognizable toys and games in the world.

Action Performance Companies Inc. designs and markets die-cast and pewter collectibles of NASCAR, NHRA, World of Outlaws (WOO) and other motor racing cars and related memorabilia. The company has licence agreements with nearly all of the leading race car drivers, sponsors and vehicle manufacturers.

Its products, manufactured in China and the United States, are marketed directly to its Racing Collectables Club of America, with more than 60,000 members, and through approximately 5,000 retailer dealers.

CONTACT: Action Performance Companies Inc., Tempe

Fred Wagenhals, 602/517-3710

Christopher Besing, 602/517-3703

or

Silverman Heller Associates, Los Angeles

Eugene G. Heller/Lynne P. Farris, 310/208-2550