SOURCE: Action Products International, Inc.

August 04, 2008 13:42 ET

Action Products International to Expand Product Industries

Bold Initiative to Increase Shareholder Value Maximizing Capital Structure, Consumer Products Infrastructure Into Growth Sectors

ORLANDO, FL--(Marketwire - August 4, 2008) - Action Products International (NASDAQ: APII) letter to shareholders:

Dear Fellow Shareholders,

We are pleased to recognize since 2001 our company has invested in and achieved many of our business objectives. We have built a strong supply chain, infrastructure, and distribution systems. We enjoy strong relationships with world-class global manufacturing partners which produce everything from children's products to high-tech electronics. We sell and deliver products to customers representing over ten thousand retail stores just in North America. We have started, sold, acquired and built brands, and have designed and developed thousands of products.

At present our primary business, children's products, has a new operating management team and is refocused to emphasize sales and reduce operating expense. It is on its way to being turned to reestablished growth and profitability from its operations.

Following these improvements, to more fully realize these opportunities, our Board is assessing a plan to structure APII as a corporation that operates a diversified portfolio of high growth companies serving the consumer products sector.

Our goal is to integrate other consumer product companies that can utilize the infrastructure we've built to secure, sell and distribute their products, be well capitalized and incentivized and to gain recognition amongst the financial and public equities markets as a part of the APII family.

We are proud of both the company and the corporation we have built thus far. With this next step, by taking advantage of our investments to date, we are now positioning our corporation for profitability and capitalization and an exciting new stage in which we seek to enter new businesses aligned with our vision of future consumer, business, and financial market economies.

We look forward to providing future updates as this is implemented.

Sincerely,
Ronald S. Kaplan
Chairman/CEO/Shareholder

About Action Products International, Inc.

Action Products International, Inc. is a global manufacturer and distributor of brand-focused educational and non-violent children's products. In business for over thirty years, the Company's products are distributed and sold by more than two thousand retail stores in the US, Canada and Internationally. For more information about Action Products International, Inc., please visit our website at www.apii.com.

Safe Harbor Forward-Looking Statements:

Statements contained in this letter that are not strictly historical are "forward-looking statements." Such forward-looking statements are sometimes identified by words such as "intends," "anticipates," "believes," "expects," and "hopes." The forward-looking statements are made based on information available as of the date hereof, and we assume no obligation to update such forward-looking statements. Such forward-looking statements involve risks and uncertainties that could cause Action Products' actual results to differ materially from those in these forward-looking statements. Such risks and uncertainties include but are not limited to demand for our products and services, our ability to continue to develop markets, general economic conditions, our ability to secure additional financing for Action Products and other factors that may be more fully described in reports to shareholders and periodic filings with the Securities and Exchange Commission.

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