CHP Reports Arrests Related to June 2002 Action Performance Die Cast Theft

    PHOENIX--July 8, 2002--Action Performance Companies, Inc. (Company) , the leader in the design, marketing, promotion, and distribution of licensed motorsports merchandise, today reiterated revenue guidance for the fiscal third quarter ended June 30, 2002, and also reported that the California Highway Patrol, through its cargo theft interdiction unit and task force, has made arrests related to the recent theft of approximately $900,000 of collectible die cast.
    Action Performance Chief Financial Officer David Martin stated: "Based upon preliminary financial information, we believe that our revenues for the third quarter ending June 30, 2002, will equal or exceed our earlier revenue guidance of $106 million to $107 million. In addition, casualty/theft insurance reimbursements are expected to cover production costs and any additional costs associated with replacing the stolen merchandise. Revenues from this merchandise, originally anticipated in the third quarter, are now anticipated to be recorded in the fourth quarter."
    "I'd like to thank the California Highway Patrol and its cargo theft task force for all of their help with this case," said Fred Wagenhals, Action Performance chairman, president and CEO. "Their diligence and quick response to this matter illustrate their dedication to their work. I also want to thank our RCCA members and collectors for their patience and ongoing support throughout this period."
    Final financial results are expected to be released in late July.

    About Action Performance

    Action Performance Companies, 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 press release contains forward-looking statements regarding the impact of the theft, third quarter results, theft losses, insurance reimbursements, fourth quarter revenues, and revenue guidance. 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 of the parties to execute the terms of the acquisition, the ability of the Company 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 September 30, 2001, on file with the U.S. Securities and Exchange Commission.