Action Products Int'l Recap of Annual Meeting of Shareholders.

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 at the company's annual meeting held at its headquarters in Orlando, FL, votes were held on the election of Directors, resulting in the re-election of each of the company's six board members. Shareholders also voted for the extension of the company's shareholder approved 1996 Stock Option Plan. In addition the following was presented and discussed:

Sales growth is "conservatively" expected to exceed 10% in 2005 with continued growth in profitability, and the company's management stated it is seeking to merge or acquire additional branded toy assets.

Shareholders in attendance were introduced to the company's new Chief Financial Offer, John R. Oliver, CPA, who noted that the company is in its strongest financial position in its history. Its only long-term debt, a mortgage on the company's distribution center, is now below $300,000. Presentation to shareholders in attendance included upgrades in the company owned distribution center to handle more volume.

The company stated that it has raised nearly $700,000 from the exercise of $3.00 shareholder warrants. The warrant exercise price changes on Sunday, July 10th to $3.50. It was noted that there are now 5,000,000 shares outstanding and that the estimated "public float" is 3,000,000 shares.

Management announced that the company has just received its largest single order for its fast growing I Dig(R) brand, which is expected to appear in the third and fourth quarter, in time for the holiday season.

The Company just received go-ahead approvals for its ToddWorld(TM) soft toys and expects to start shipments this September. The line will be backed up by a promotional "trailer" that includes the Action Products soft toys line. The trailer is expected to appear on 15,000,000 home entertainment DVDs. ToddWorld, still in its first year, was recently nominated for an Emmy award and an award honoring humanities in media.

Samples of Talking Stix(TM), also shipping for the holidays, were given to attendees sparking considerable interest and conversation about the benefits and memories of play. This new and exciting brand is planned to appear in coffee shops and bookstores later this year and more substantially in 2006.

Curiosity Kits(R) showed several new items shipping this season, including Memory Purse and Belt, a cool new EZ Art oven and accessories, an original old fashion weaving loom, a Gem Broach making kit and several other exciting new products. With supply and quality improvements accomplished in the first year following the merger into Action Products, Curiosity(R) is expected to create strong sales in 2006.

The company is optimistic about the Jay Jay The Jet Plane brand, however management noted this brand is expected to rank third or lower in its 2005 revenue by brand (further detail of brand sales is not published).

About Action Products

Action Products International, Inc. brands include 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.

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.