Action Products Expects Fourth Quarter Sales Gain; Edu-Toy Co. Sees Momentum Continuing into 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, today announced that the company expects to report a profit for the fourth quarter and that sales will exceed $2.6 million compared to sales of $1.8 million for the same period last year. Based on preorders for the first quarter, the sales momentum is expected to continue into 2005.

Commenting on 2005, Ron Kaplan, CEO, said: "We are in deep negotiations to acquire new properties. We could have an announcement by the New York Toy Fair, in February. In addition, we are improving our ability to supply our customers with Curiosity Kits!(R) merchandise. Curiosity Kits! will have a positive effect for first quarter '05 revenue, as we didn't take over Curiosity Kits! until well into the second quarter of 2004. We have some 50 new products scheduled to be released in 2005. The balance sheet remains strong. Our goal of increasing the number of accounts and diversification of accounts we service is being achieved. Our top 10 accounts will comprise less than 40% of our 2004 sales vs. 54% in 2003."

Action Products International, Inc. is a leading designer and manufacturer of educational and positive branded toys emphasizing fun. Quality 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, and intellectual property rights and 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.