Action Performance Says $17.7 Million Tax Refund Assures Strong Liquidity

    PHOENIX--Jan. 25, 2001--Action Performance Cos. Inc. (company) , the leader in the design, marketing, promotion and distribution of licensed motorsports merchandise, today reported receiving a $17,736,000 federal income tax refund.
    The company had previously estimated the refund at $14 million and anticipated that it would be received in February or March 2001.
    David Martin, Action Performance chief financial officer, commented, "This additional liquidity provides a high degree of financial flexibility, a key component in building solid revenue-producing core relationships and product lines, and will assist in controlling our costs and expenses. In addition, this earlier-than-expected inflow allows us to accelerate our fiscal 2001 corporate strategies."

    About Action Performance

    Action Performance Cos. Inc. is the leader in the design, marketing, promotion and distribution of licensed motorsports merchandise. Its products include a broad range of motorsports-related die-cast car replica collectibles, apparel, souvenirs and other memorabilia. The company markets and distributes products through a variety of sales and distribution channels, including QVC, the Racing Collectables Club of America (RCCA), goracing.com, trackside at racing events, mass retail department stores, and a worldwide network of wholesale distributors and specialty dealers.

    This news release contains forward-looking statements regarding the company's financial condition, potential use of funds, potential business opportunities and financial results. The company's actual results could differ materially from those set forth in these forward-looking statements. Factors that might cause such differences include, among others, the ability to successfully execute its business plan, competitive pressures, acceptance of the company's products and services in the marketplace, the success of new marketing programs, the company's ability to successfully execute its agreements with other parties, and other risks discussed in the company's Form 10-K, dated Sept. 30, 2000, on file with the U.S. Securities and Exchange Commission.