Action Products Reports Sales Up 4.5% for Six-Months Ending June 2005; Company Forecasts Faster Growth in Second Half.

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 sales for the six months ending June 30, 2005 were $3,866,774, an increase of 4.5% over six-months ending June 2004 sales of $3,700,088.

Sales for the second quarter ending June 30, 2005 were $1,911,196 vs. $1,937,299 in 2004. Management expects a stronger third quarter due to customers' last minute decisions of combining some of their June orders with new product arrivals in July and August.

President and CEO Ron Kaplan said, "We are reaffirming that our sales growth should exceed 10% for this year. We fully expect further improvement in our bottom line, and remain committed to our overall goal of achieving profitability and bringing great branded products to the marketplace. As we noted before, robust growth for Action Products will stem from an unrelenting product offensive, an intensified effort in the toy market, incremental volume from acquisitions, adherence to value with quality and very strong brand equity. With the recent first anniversary of our acquisition of Curiosity Kits, we have now completely rectified Curiosity's supply chain, with all continuing and good selling products back at work for our retail dealers and providing summer fun for children. In addition, we have significantly improved product quality and consistency across the entire brand. While we have seen an increase in "copy cat" products, Curiosity Kits is and will always be the most creative and innovative brand in children's crafts and activities. {In addition to current products) brand new items, as well as a few returning best-selling classics, will be on store shelves later this summer.

"Approximately 430,000 warrants were recently exercised at $3.00. The new exercise price is now $3.50 and the warrants expire in January 2006. We expect to report second quarter financials by August 4."

About Action Products

Action Products International, Inc. 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, 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.