Action Performance Assesses Potential Impact of Work Slowdowns and Lockouts at West Coast Ports

    PHOENIX--Oct. 3, 2002--Due to the alleged work slowdowns by longshoremen at major ports on the West Coast, and the subsequent lockout of those workers by port authorities, revenue of Action Performance Companies, Inc. for the fourth quarter ended Sept. 30, 2002, are being affected, the company reported today.
    Because of the labor issues, product of Action Performance, which is pre-sold, remained on ships or in containers on the dock in the Port of Long Beach, rather than having been shipped to Action's distributors. This product cannot be booked as revenue until it is unloaded by union longshoreman and is loaded onto trucks bound for Action's distributors. As a result, approximately $5.7 million of revenues could not be booked in the final days of fiscal year 2002, which ended Sept. 30, even though the product had arrived from China and had been pre-sold. This amount will increase revenues for the first quarter of 2003.
    Action Chairman and Chief Executive Officer Fred Wagenhals said, "The port closings, which will affect most major importers, will have no impact on our plans to achieve double-digit growth in revenues, earnings and cash flow for fiscal 2003."
    "Based upon preliminary revenue information, were it not for the labor issues, revenue would have met our guidance for the fourth quarter ending Sept. 30," Action Chief Financial Officer David Martin said. "This is simply a shift in the timing of revenue recognition."
    Action Performance is scheduled to report financial results for the fourth quarter and fiscal 2002 in early November. Given that the fiscal year closed earlier this week, the company is not yet in a position to estimate the precise impact that West Coast port closings will have on revenue and earnings for the period ending Sept. 30.

    About Action Performance:

    Action Performance Companies Inc. is the leader in the design, promotion, marketing and distribution of licensed motorsports merchandise. The Company's products include a broad range of motorsports-related die-cast replica collectibles, apparel, souvenirs and other memorabilia. Action Performance markets and distributes products through a variety of channels including the Action Racing Collectables network of wholesale distributors, the Racing Collectables Club of America, QVC, goracing.com, trackside at racing events, direct corporate promotions, mass retail and department stores, specialty dealers and online at nascar.com. Additional information about Action Performance can be found at www.action-performance.com.

    This press release contains forward-looking statements regarding expectations for revenues, EBITDA, net income, cash flow and capital and other funding needs, growth strategy, operational plans, and guidance for future periods. 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 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.