Action Products Reports Improved 2nd Quarter Financial Results, Profits Rise for the 12 Months Ending June 30, 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, is pleased to announce that the company made strong improvements in the second quarter financial results.

For the three months ending June 30, 2005 sales were $1.91 million compared with sales of $1.93 million for three months ended June 30, 2004. Reduction in operating expenses, on the nearly equivalent revenue, resulted in a reduced loss of $78,000 (-$.02 a share) vs. a loss of $252,700 (-$.06 a share) for the quarter.

For the six months ending June 30, 2005, sales were $3.86 million with a loss of $91,000 (-$.02 a share). For the same period in 2004, sales were $3.70 million with a loss of $441,500 (-$.11 a share).

As of June 30, 2005, long-term debt was reduced to $201,700 from $475,400 in June 2004. The current ratio improved to 2.8:1 from 2.0:1 in June 2004.

CEO Ron Kaplan said, "We've substantially improved our operating performance and are excited about our current and new product offerings. For the 12 months ending June 30, 2005 sales are $9.27 million vs. $8.26 million (at June 30, 2004) or a 12% gain. Our net profit rose to $282,600, from a loss of $861,200 for the trailing twelve months ended June 30, 2004, or $.06/share profit as compared to the loss of -$.24 a share. Number of shares increased in this period due to exercised warrants."

A conference call is scheduled for Monday, August 8 at 4:00 P.M. EDT. The call in number is 800-240-2430.

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, Talking Stix(TM) and ToddWorld(TM). 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.