Action Performance announces record sales and earnings for fiscal 1996.

TEMPE, Ariz.--(BUSINESS WIRE)--Dec. 3, 1996--Action Performance Companies Inc. (NASDAQ/NM:ACTN) Tuesday announced record results for its fiscal fourth quarter and year ended Sept. 30, 1996.

For the fiscal fourth quarter, sales rose approximately 43 percent to $14.2 million vs. $9.9 million for the comparable quarter of 1995. Net income for the period grew 57 percent to $2.2 million, or 16 cents per fully diluted share, compared with net income of $1.4 million, or 11 cents per fully diluted share, for the same period a year ago.

For fiscal 1996, sales advanced 69 percent to $44.2 million from $26.1 million for fiscal 1995. Net income for the period doubled to $6.0 million, or 46 cents per fully diluted share, vs. net income of $2.8 million, or 25 cents per fully diluted share, for fiscal 1995.

Fred W. Wagenhals, chairman, president and chief executive officer of Action Performance, stated, "Our substantial sales growth was driven primarily by the successful development and implementation of Action's strategic marketing programs that target motorsports racing enthusiasts, as well as our expansion into drag racing.

"Additionally, we continued to add new motorsports personalities to our roster of talent throughout the year. Our programs were bolstered by the exploding interest in NASCAR racing all across the country, coupled with the widespread and growing interest in drag racing outside its original regional domain."

Explained Wagenhals: "Also contributing to our growth have been two complementary programs developed to diversify our business and strengthen our position in the racing market. The first is a strategic alliance with Hasbro (ASE:HAS), with whom we are jointly developing a full line of Winner's Circle toy products to be manufactured and distributed by Hasbro beginning in January 1997.

"These toys, which are distinguished from the higher-margin line of collectibles made by Action Performance, are less expensive and target the youth market. The second is the formation of Action Sports Management, a new division that manages licensing and promotional business development for our comprehensive motorsports programs and which will represent select motorsports talent in negotiating licensing and marketing agreements."

After the close of the year, the company completed the acquisition of the marketing and distribution firm, Sports Image Inc., from Dale Earnhardt, which further complements the company's other lines of business.

Wagenhals continued, "We hope to maintain the company's strong margins through a combination of ever-increasing high-margin sales and disciplined, diligent management of operating expenses.

"It is clear that our expansion into drag racing has beneficially affected our financial results, and we look forward to further expanding our position in that market in fiscal 1997. Additionally, the synergies provided by these new business endeavors enable us to attract the most competitive racing personalities by offering them the most diverse range of product sales and licensing opportunities that will help them maximize their earnings over the life of their careers," concluded Wagenhals.

Action Performance Companies 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 license agreements with nearly all of the leading racing 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 70,000 members and through approximately 5,000 retail dealers. -0-

                  ACTION PERFORMANCE COMPANIES INC.
                        Financial Highlights

                        Three months ended        Fiscal year ended
                             Sept. 30,                Sept. 30,
                         1996        1995         1996         1995

Sales                $14,161,076  $9,867,173  $44,215,935  $26,131,215
Net income             2,158,931   1,432,865    5,953,295    2,769,849
Earnings per fully
 diluted share          16 cents    11 cents     46 cents     25 cents
Weighted average
 number of fully
 diluted shares
 outstanding          13,128,333  12,504,521   13,069,380  11,570,046

CONTACT: Action Performance Companies Inc., Tempe

Christopher Besing, 602/517-3703

Fred Wagenhals, 602/517-3710

or

Silverman Heller Associates, Los Angeles

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