Action Products Reports Improved Results for Fiscal 2004; Company Aims for Record Sales with Profits in 2005.

ORLANDO, Fla. -- Action Products International, Inc. (NASDAQ:APII), a leading toy designer and manufacturer of educational, positive, non-violent branded toys for pre-school children through pre-teens, announced revenue for the year ending Dec. 31, 2004 was $9,109,000 vs. $8,218,000 in 2003, a gain of 11%. The net loss for FY 2004 was only $68,000 (-$.02/share) vs. a loss of $524,000 (-$.16/share) in 2003. The fourth quarter produced sales of $3,017,000 and a profit of $320,000 ($.07/share) vs. sales of $1,843,000 and a loss of $585,000 (-$.17/share) in 2003. The dramatic improvement in Q4 was due to increased consumer acceptance of our brands as well as momentum of the recent Curiosity Kits!(R) acquisition. E[acute accent]For the 12 months ending Jan. 31, 2005, the company recorded an unaudited 57% increase in sales with slight profit. E[acute accent]The Dec. 31, 2004 balance sheet was much stronger than in 2003, even after accounting for the acquisition cost of Curiosity Kits!(R) of $2,100,000, which was accomplished with internal funds as well as a short-term loan from insiders. All related loans were subsequently repaid. Total current assets on Dec. 31, 2004, climbed to $5,158,000 from $3,034,000 in 2003. E[acute accent]The company has reduced debt, clearing the way for another possible acquisition. Several evaluations are taking place. E[acute accent]With the recent acquisition of two new licenses, Talking Stix(TM) and ToddWorld(TM), APII is expected to show gains in sales as well as a net profit for FY2005. The new licenses will add strength to the company's line listings throughout North America. Foreign sales are expected to increase as new distributors have been retained and are being evaluated in the United Kingdom and Australia respectively. The new licensed brands are expected to grow sales gains in 2006 and beyond. E[acute accent]There is a conference call scheduled for 4:15 P.M. today. Interested parties can call 800-218-0713 to participate. E[acute accent]Action Products International, Inc. is a multi brand 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. E[acute accent]For more information on Action Products' toys, visit the Company's web site at http://www.apii.com.

E[acute accent]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.