Action Performance Announces Changes to Distribution Network

4 October 1999

Action Performance Announces Changes to Distribution Network

    PHOENIX, Ariz.--Oct. 4, 1999--To further strengthen its national distribution network, Action Performance Companies, Inc. (Nasdaq NM: ACTN) today announced that it had made a strategic reduction in the number of its distributors from twenty-six to eighteen.
    "By streamlining our distribution network and retaining those distributors with the most pervasive dealer networks, the most strategic geographical locations and the infrastructures capable of handling our complete product line, Action is much better positioned to take advantage of all of the growth potential in this important channel," said Fred W. Wagenhals, chairman, president and chief executive officer, Action Performance Companies. "When we have streamlined our distribution network in the past, the company and the network have benefited greatly in all areas, and we anticipate this reduction will have a similar positive effect."
    In addition to helping maximize Action's long-term growth strategy, the streamlining of the distribution network also ensures that proper controls are maintained within the channel. "We anticipate that this decision will allow us to more efficiently allocate our products to dealers throughout the country, as well as minimize the sale of company products in unauthorized channels," said Melodee Volosin, president, Action Racing Collectables.
    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 channels, including the 170,000-member Racing Collectables Club of America (RCCA), online through SpeedMall at goracing.com, trackside at racing events, mass retail department stores, and a worldwide network of wholesale distributors and specialty dealers.