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Action Performance Signs Licensing Agreement With Al Unser Jr.

20 March 2000

Action Performance Signs Exclusive Merchandise Licensing Agreement With Indy Driver Al Unser Jr.

    PHOENIX--March 20, 2000--Action Performance Companies Inc. announced that it has signed a three-year exclusive merchandise licensing agreement with renowned open-wheel driver Al Unser Jr. and the Galles ECR Racing team, currently competing in their first season in the Indy Racing Northern Light Series.
    Under the terms of the agreement, Action Performance obtains the rights to market, promote, distribute and sell licensed merchandise for Unser Jr. and the Galles ECR Racing team through the end of 2002.
    The agreement is a significant demonstration of Action's ongoing efforts to expand product offerings beyond NASCAR and strategically include open-wheel racing in the company's emerging business initiatives.
    "Al Unser Jr. and the Galles ECR Racing team are exciting additions to the Action Performance family, and we're proud to be working with Al, who is one of the world's top motorsports personalities," said Fred Wagenhals, Action chairman, president and chief executive officer.
    "We have applied our licensing and marketing expertise with great success in NASCAR, and we are continually pursuing opportunities to expand our business across all forms of racing worldwide."
    Wagenhals added, "By helping promote Indy drivers, teams and sponsors to the fans through trackside merchandise, RCCA Club memberships, and online exposure through goracing.com, we can help support the growth of open-wheel racing as well as expand our own our business core. It's a win-win situation."
    "I am very excited to join the Action Performance team, which has been a long time coming," said Unser Jr. "My hopes are that together we can go to the winner's circle as quick and as often as possible."
    "Galles ECR Racing is thrilled with the opportunity to work with Action, the elite merchandising company of motorsports," said Rick Galles, Galles ECR Racing owner.
    "We're excited about their support of Al and the Indy Racing series. Action's involvement with bringing merchandise to the fans generates public awareness and helps elevate the popularity of motorsports to the level of other major professional sports associations like the NFL. This is a very positive thing for the growth of Indy Racing."
    In November 1999, Unser Jr. signed a five-year deal with Galles ECR Racing to compete in the 2000 Indy Racing Northern Light Series as a rookie, driving the Tickets.com Starz Encore SuperPak car.
    Previously he was a prominent figure on the CART open-wheel series with Indianapolis 500 victories in 1992 and 1994 and consistent race wins and high point standings throughout his 27-year career.
    The Unser family name is no stranger to Indy racing - Al Unser Jr. is the son of four-time Indianapolis 500 winner Al Unser, nephew of three-time winner Bobby Unser, and his cousins Robby Unser and Johnny Unser also compete in Indy Racing.
    Action Performance is currently in production for Al Unser Jr.-endorsed soft-good items, and May/June availability is anticipated for die-cast collectibles of the 2000 Galles ECR Racing Tickets.com Starz Encore SuperPak car.
    Licensed products will be available trackside, online through goracing.com and through Action's established distribution channels.
    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 Racing Collectables Club of America (RCCA), online at 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. 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, competitive pressures, acceptance of the company's products and services in the marketplace, the company's ability to implement successfully its Internet strategy, the company's ability to integrate successfully acquired businesses, and other risks discussed in the company's Form 10-K for 1999, dated Sept. 30, 1999, which is on file with the U.S. Securities and Exchange Commission.