Action Performance Preliminary First-Quarter Sales Exceed Guidance

PHOENIX--Jan. 3, 2002--Action Performance Companies, Inc. today reported that preliminary sales figures for its fiscal first quarter ended December 31, 2001, exceed earlier guidance and analysts' estimates due to higher-than-expected die cast and apparel sales to the Company's distributors and its mass retail channel, which includes retailers such as Walmart and Kmart.

``Based on preliminary sales reports, we expect to report first quarter revenues in excess of analysts' high-end estimates of $71.8 million and our high-end guidance of $72 million,'' remarked David Martin, Action Performance CFO. ``Sales from our mass retail channel were higher than we projected, notwithstanding the slow sales environment faced by many retail businesses this past holiday season.''

``We are particularly pleased with the strength of these early reports, because they also validate the Company's strategy to increase its product line and broaden its distribution capability,'' stated Fred Wagenhals, Action Performance chairman, president and CEO. ``As we anticipated, the acquisition of the Winner's Circle brand and its acceptance in the mass retail channel have contributed to stronger first quarter numbers, which are typically the weakest of the fiscal year.''

The Company expects to release first quarter results in late January.