Action Performance Companies Announces Stock Repurchase Decision

16 October 2000

Action Performance Companies Announces Stock Repurchase Decision

    PHOENIX--Oct. 16, 2000--Action Performance Companies Inc. Monday announced its decision to continue to repurchase shares on the open market in accordance with its previously announced repurchase program.
    Action Performance Companies also stated that, although corporate restructuring plans and cost reduction steps are being implemented, it does not foresee a return to profitability until fiscal year 2001.
    Reports Action Performance Chief Financial Officer, David Martin, "Our decision to repurchase stock at this time reflects our belief that the stock is undervalued and our optimism about the company's prospects."
    Action Performance Companies Inc. is the 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 products through a variety of channels, including Racing Collectables Club of America (RCCA), 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 repurchasing of stock and potential growth. 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 restructuring plans, 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.