Action Products Switches to AmSouth and Increases Bank Line; 2nd QTR Conference Call 4:00 P.M. (EDT) Monday, August 8th.

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 the company has, with a formal commitment letter, been able to increase its bank line to $2,500,000 and under certain conditions, the working capital line can be extended to $3,000,000. This new line was upgraded from a previous bank line with Mercantile Bank for $2,000,000.

Borrowings on the Company's existing working capital line of credit were $772,900 at June 30th, 2005.

Newly appointed CFO John Oliver, who helped negotiate the line, said, "AmSouth Bank gave us the best bid and cooperation. With this we were able to increase working capital borrowing capacity and reduce our interest rate (respective to the previous arrangement). We had committed our inventory before the Yuan was raised and that puts us in a favorable position as well as being able to meet demand."

Ron Kaplan, CEO noted, "We appreciate the level of confidence that AmSouth and the other candidates have shown in our organization. This goes a long way toward helping us accelerate our internal sales growth. With our currently high preorders and the pending Fall 2005 launch of the new Talking Stix(TM) and ToddWorld(TM) brands we are looking forward to a strong second half of the year."

The conference call phone number is 800-240-2430. Replays will be available on the Action Products website.

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.