Action Products Expecting Increased Sales & Profits Q-3; Edu-Toy Company Continuing Stated M&A Objectives.

ORLANDO, Fla. -- Action Products International, Inc. (NASDAQ:APII), a leading toy designer and manufacturer of educational and positive, non-violent branded toys, reports that based on numbers currently available to management, the company is forecasting an increase in sales in the current quarter as compared to the same period last year. This would also translate to increased sales for the nine months ending Sept. 30. The company also expects its balance sheet to remain strong.

APII Chairperson, Warren Kaplan, said, "overall the brands in our portfolio continue to perform well. We will have two new brands, ToddWorld(TM) and Talking Stix(TM), that will help to continue sales and earnings momentum into the years ahead." In speaking about the Company, known for its relative "transparency" with shareholders, Mr. Kaplan continued: "we would like to grow faster however we do not intend to sacrifice our long term well being for short term spikes. Rather, we'll continue to build profits and a solid company for increasing long-term shareholder value. We also continue to acquire more branded product assets with at least one more acquisition expected before year end."

About Action Products International, Inc.

Action Products International, Inc., based in Orlando, Florida is a toy manufacturer, emphasizing educational and positive play brands, including JAY JAY THE JET PLANE Wooden Adventure System, the I DIG(R) series, Space Voyagers(R) "The most authentic Space Toys on the Earth," Climb@Tron(TM) window-climbing robots, and Curiosity Kits(R). Its products are marketed and sold to toy stores, specialty retailers, Internet retailers, museums, zoos, theme parks, attractions, catalog companies and education markets in the United States and worldwide.

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.