Action Performance and Kasey Kahne Announce New Agreement; Action Performance Inks Endorsement Deal with Rookie Driver.

PHOENIX -- Action Performance Companies Inc. (NYSE: ATN), the leader in the design, promotion, marketing and distribution of licensed motorsports merchandise, today announced an endorsement agreement has been signed with NASCAR NEXTEL Cup Series driver Kasey Kahne, who currently drives the No. 9 Dodge Dealers/UAW Dodge for Evernham Motorsports. The new deal grants Action personal services rights and is effective until December 2009.

The new agreement grants Action Performance the rights to use Kahne's name, image and likeness for a variety of media, including print, television and radio advertisements as well as the Internet. Kahne also will make a series of public appearances (e.g. autograph sessions, special events, etc.) for Action that will be determined throughout the course of the contract. In return, Action Performance receives placement of the official Action name and logo on Kahne's racing helmet and/or uniform.

"This arrangement offers a unique opportunity for me to stay connected to all of those NASCAR fans and collectors who have been so supportive this season," Kahne noted. "It's with pleasure that I give my time to meet the fans who wear my colors and cheer me on at every race. Working with Action Performance streamlines the process since many of those fans usually bring No. 9 Dodge collectibles or T-shirts and things for me to sign. It's a great feeling to know how much the fans appreciate you and the job you do on the racetrack, and I never want to take that for granted."

Action Performance will continue to supply the trackside merchandise haulers for Kahne and will handle the production and manufacturing for a variety of Kahne-inspired die-cast replica collectibles, select apparel items and souvenir merchandise.

"As long as he remains committed to building on the success of his current season and stays focused on a positive path, we at Action feel that Kasey Kahne will rank among NASCAR's elite drivers for many years to come," said Fred W. Wagenhals, Action Performance's chairman, president and CEO. "This agreement ensures that Action Performance Companies will support this talented, young driver as his NASCAR racing career evolves."

Kasey Kahne die-cast collectibles and other memorabilia are currently available through Action's standard distribution channels. To reach one of 16 Action Racing Collectables distributors, call the locator line at 1-800-411-8404. The Racing Collectables Club of America, Action's exclusive collectors club, can be reached at 1-800-952-0708 or visit RCCA online at www.goracing.com.

About Action Performance Companies:

Action Performance Companies Inc. (NYSE: ATN) is the leader in the design, promotion, marketing and distribution of licensed motorsports merchandise. The Company's products include a broad range of motorsports-related die-cast replica collectibles, apparel, souvenirs and other sports-inspired memorabilia. Action Performance markets and distributes products through a variety of channels including the Action Racing Collectables network of wholesale distributors, the Racing Collectables Club of America, QVC, goracing.com, trackside at racing events, direct corporate promotions, mass retail and department stores, specialty dealers and select online retailers. For more information about Action Performance and its many subsidiaries, please visit the company's corporate Web site at www.action-performance.com.