Action Performance Signs Long-Term Exclusive Licensing Agreement
30 November 1998
Action Performance Signs Long-Term Exclusive Licensing Agreement With Cart Licensed Products, L.P.
PHOENIX--Nov. 30, 1998--Action Performance Companies Inc. Monday announced that it has signed a long-term, exclusive die-cast and toy licensing agreement with CART Licensed Products, L.P., the licensing arm of the nation's leading sanctioning body for open wheel racing - Championship Auto Racing Teams Inc. (CART) .
Under the terms of the agreement, Action obtains the exclusive licensing rights to the CART series and FedEx Championship Series logos, as well as five of the top teams in the series, including Newman/Haas Racing, PacWest Racing Group, Target/Chip Ganassi Racing, Team Green Inc., and Team Rahal Inc.
In addition, Action obtains the non-exclusive licensing rights for a minimum of 75 percent of the other teams and drivers participating in CART sanctioned race events. The initial term of the agreement is for five years with a five-year renewal option.
The rights granted under the agreement allow Action to create a line of collectible vehicles consistent with the detail and quality featured in its existing die-cast collectibles. The company also will have the exclusive rights to market or sublicense a broad range of toy products, such as plastic and remote control vehicles, action figures, miniature helmets, board games, plush toys, and puzzles.
Said Fred W. Wagenhals, Action chairman, president and chief executive officer, "This agreement heralds a long-term, mutually beneficial relationship that will capitalize on the growing popularity of the CART series and will enhance our expansion and exposure in international markets. CART is one of the fastest growing racing series in motorsports, and we anticipate a high level of enthusiasm and product demand from motorsports fans worldwide."
Said Robert Hollander, president of CART, L.P., "Action Performance sets the standard for collectible die-cast and motorsports toys and their commitment to aggressively market CART products makes this a terrific relationship."
Action will market CART series products through its current domestic and international channels of distribution and through its newly acquired internet and electronic commerce capabilities via www.speedmall.com.
The exclusivity and long-term commitment between CART and Action further strengthens Action's global brand recognition and secures the company's position as a worldwide leader in motorsports merchandise.
Said Andrew Craig, chairman and CEO of Championship Auto Racing Teams, "We have made tremendous progress in our licensing business since we formed CART Licensed Products on January 1, 1997, and this deal with Action is another major step forward. Action is the best partner to develop these important product categories. Developing a successful licensing business is important to us not only for the potential revenues, but also for the market presence that licensed products create for the CART brand."
Championship Auto Racing Teams Inc. is a New York Stock Exchange-listed company that completed an initial public offering on March 10, 1998. CART is the leading promoter of open wheel racing in the United States and owns, operates and markets the FedEx Championship Series, which is comprised of 20 races in five countries on four continents in 1999.
Drivers such as Michael Andretti, Al Unser, Jr., and 1996 champion Jimmy Vasser race 900-plus horsepower, open wheel cars at speeds of more than 230 miles per hour on some circuits. CART also owns and sanctions the PPG Dayton Indy Lights Championship as well as the KOOL Toyota Atlantic Championship.
Action Performance Companies Inc. is a worldwide leader in the design, marketing, 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 its products through a variety of channels, including the 153,000-member Racing Collectables Club of America (RCCA), trackside at racing events, mass retail department stores, and a worldwide network of wholesale distributors and specialty dealers.
Note to Editors: This press release contains forward-looking statements. The company's actual results could differ materially from those set forth in the forward-looking statements. Factors that might cause such a difference include, among others, changes in the popularity of motorsports and the growth in the market for licensed motorsports products, competitive pressures, acceptance of Action's products and services in the marketplace, and other risks detailed in the company's Securities and Exchange Commission filings, including the company's Form 10-K dated Sept. 30, 1997.