Action Performance Retires $13 Million 4 3/4% Notes

    PHOENIX--June 25, 2001--Action Performance Companies Inc. ("the company"), the leader in the design, marketing, promotion and distribution of licensed motorsports merchandise, today reported it has retired $12,950,000 in its 4 3/4% convertible subordinated notes due 2005 in exchange for 466,217 shares of common stock.
    The shares used in these private transactions represent a portion of the 967,000 treasury shares acquired by the company at an average price of $8.25 per share under a previously authorized stock repurchase program.
    Since initiating its debt-reduction program in January 2001, the company has retired approximately $32.9 million of its notes due 2005, bringing the outstanding balance of that issue down to approximately $67.1 million.
    Said David Martin, Action Performance CFO, "We believe that this debt reduction not only improves our balance sheet, but also increases our profitability and free cash flow, thereby increasing shareholder value."
    The gain on the repurchase of this debt will be recorded as an extraordinary item in the company's fiscal 2001 third-quarter results.