Action Products Announces Improved First Quarter Financials And A Profit For 12 Months Ending March 31, 2005.

ORLANDO, Fla. -- Action Products International, Inc. (NASDAQ:APII), a leading toy designer and manufacturer of educational and positive, non-violent branded toys for pre-school children through pre-teens announced that the company reported that sales in the first quarter were $1,956,000 up from $1,763,000 last year (+11.6%) and that the loss was only $13,100 ($.00 per share) vs. a loss of $188,900 last year (-$.05 a share). Trailing 12-month sales for the period ending March 31, 2005 were $9,302,000 and a profit of $107,900 (+$.03 a share). The net worth of the company has increased to $5,708,500 ($1.19 a share based on 4.8 MM shares).

Current assets totaled $4,458.400 while current liabilities are down to $1,183,100, a ratio of 3.8:1. Long-term debt has been reduced to $360,000, which is 6.3% of capital. We own our warehouse in Ocala, FL and we improved our inventory handling equipment at the end of the quarter.

The company now has approximately 4,800,000 shares outstanding and an estimated float of 2,900,000 shares, a result of the exercise of warrants distributed to shareholders of record in January 2005.

Warren Kaplan, Chairperson said, "Clearly, we have met our expectations in the first quarter and we have great momentum for the balance of the year. Our balance sheet and capital structure show increased strength, which will allow us to seek additional acquisitions. In addition, we have what may become huge brands for us appearing late in the third quarter, namely Talking Stix(TM) and ToddWorld(TM). We have also bought back shares of stock in the open market thereby enhancing the value of the longer-term stockholders. Micro stocks are not known to do this but we have a growing operation and it is our intent to share the benefits. We recognize that analysts under follow us because of our size but we are growing and we have started a reach out program. As a result, we now have a mutual fund and some other institutions holding shares in Action Products. We are holding to our guidance of increased sales and profitability for 2005 and greater gains in 2006."

Ron Kaplan, CEO & President, said: "The public can rely on us to bring them quality toys at fair prices. The key to our expansion is the development of our brands and to control expenses. We will not grow for the sake of getting larger. Our front burner challenge is to grow with profits that will help us to fund future growth."

There will be a conference call to review the financial results on Monday May 16 at 4:00 P.M. To participate, the call in number is 800-240-2430.

About Action Products

Action Products International, Inc. brands including JAY JAY THE JET PLANE Wooden Adventure System(TM), I Dig Dinosaurs(R) and I Dig Treasures(R) excavation activity kits, Space Voyagers(R) ("The most authentic Space Toys on Earth"), Wild Climbers(TM) and Climb@Tron(TM) window-climbing animals and robots, Play and Store(TM) themed playsets, Kidz Workshop(TM) wooden projects, Drop Zone Extreme(TM) parachute toys, and Curiosity Kits(R), a leading, award-winning specialty brand for kids' craft and activity kits. Its products are marketed and sold worldwide to specialty retailers, museums, toy stores, theme parks, attractions, zoos, catalog companies, Internet retailers, and educational markets.

For more information on Action Products' toys, visit the Company's web site at http://www.apii.com.

Any statements that are not historical facts contained in this release are forward-looking statements. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.