SOURCE: Action Products International, Inc.

October 13, 2006 09:59 ET

Orlando's Toy Company Announces Successful Outcome in Civil Suit

Action Products International Awarded $5.1 Million Damages for Breach of Contracts

ORLANDO, FL -- (MARKET WIRE) -- October 13, 2006 -- Action Products International, Inc. (NASDAQ: APII), a leading toy designer and manufacturer of educational and positive, non-violent branded toys for pre-school children through pre-teens, announced today a successful outcome in a civil lawsuit. After a trial by public jury that lasted six days in the courts of Florida, a jury deliberated for over 5 hours, considering evidence of documents and events that they saw, heard and read.

The jury found (pending appeal) Lung Cheong International Holdings Limited and its American subsidiary used information, learned from confidential discussions with Action Products International, Inc., to take an important acquisition away from Action Products. The jury further found Action Products' former Chief Financial Officer Timothy L. Young aided Lung Cheong in accomplishing the "end run" around APII. In 2001, Plaintiff, Action Products Int'l, had worked over six months on the pending acquisition and was in a lead position when the company was exploring outside funding and partnerships under protection of confidentiality agreements, disclosing its negotiations, plans, and evaluations to Lung.

Lung Cheong, represented by Chief Financial Officer Andy Wong, and Timothy Young, now an Orlando consultant, were found to have broken agreements regarding use of confidential information and competition (respectively). The acquisition, a New Hampshire-based toy manufacturer, was crucial to Action's growth plans over the years since and would have at least been significantly accretive to its sales and earnings performance through today.

Orlando attorney Keith Mitnik, in the Commercial Litigation division of Morgan & Morgan, LLC, represents Action Products, which has not filed any other legal actions in at least the past ten years. Mr. Mitnik's trial team includes Branden Peters, Esq, and Greg Francis, Esq.

The judgment amount to APII is $5.1 million, plus legal fees and costs.

About Action Products International, Inc.

Action Products International, Inc. (APII) based in Orlando, Florida, is a toy manufacturer, emphasizing educational and positive play brands, including JAY JAY THE JET PLANE Wooden Adventure System, the I DIG® series, Space Voyagers® "The most authentic Space Toys on the Earth," ToddWorld™ soft play toys, Climb@Tron™ window-climbing robots, Curiosity Kits® and IMADETHAT™. Its products are marketed and sold to toy stores, specialty retailers, Internet retailers, museums, zoos, theme parks, attractions, catalog companies and education markets in the United States and worldwide.

Visit the Company's web sites at and

Forward-Looking Statements

Any statements that are not historical facts contained in this release are forward-looking statements. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements may involve risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, the results of financing efforts, the ability to complete transactions, and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.

Contact Information