SOURCE: Action Products International, Inc.

August 11, 2008 10:15 ET

Action Products International, Inc. Signs Letter of Intent to Acquire B.E. Overseas Investment Group, LLC

ORLANDO, FL--(Marketwire - August 11, 2008) - Action Products International, Inc. ("APII") (NASDAQ: APII), a designer, manufacturer and importer of branded educational toys and craft products, announces today it has entered a letter of intent for the acquisition of B.E. Overseas Investment Group, LLC ("BE").

BE (www.beoverseasinvestmentgroup.com) is a holding company and merchant bank that provides foreign companies intellectual and growth capital and access to US markets. BE's asset portfolio includes substantial ownership in Visiomed International, Inc. ("VI"). VI is a distributor of medical devices and home health and wellness products. Products and other information can be viewed directly at www.VisiomedInternational.com.

"In keeping with the plan outlined recently in a letter to our shareholders; amongst other assets from this step we are acquiring BE's ownership in Visiomed International, Inc," notes APII Chairman, Ronald Kaplan, "BE's holdings in VI are being acquired into our new wholly owned subsidiary Action Healthcare Products, Inc."

BE founder and CEO, Neil Swartz, comments, "As part of APII, BE and its clients get the structural backbone to introduce their product to the US markets much faster. APII has invested a tremendous amount in building a marketing and distribution infrastructure. As part of Action Healthcare Products, Inc. VI's recently introduced award-winning product line will be able to utilize this infrastructure right away."

The terms of the acquisition have not been negotiated. The closing of the transaction is subject to several conditions, including APII's satisfactory due diligence and board approval.

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.

About B.E. Overseas Investment Group, LLC

With a focus on developing small- to mid-sized businesses, BE Overseas specializes in identifying and partnering with existing and emerging international firms to help deliver aggressive growth and market performance. To deliver strong financial returns, B.E Overseas manages and directs the executive management teams of its partner companies with the goal of expanding markets, improving market share and developing innovative products. This focus allows B.E Overseas to provide a strategic direction and financing vehicles to its partnered companies that deliver results in immediate revenue growth and investment returns. www.beoverseasinvestmentgroup.com

Safe Harbor Forward-Looking Statements

Statements contained in this release that are not strictly historical are "forward-looking statements." Such forward-looking statements are sometimes identified by words such as "will," "intends," "anticipates," "believes," and "expects." The forward-looking statements are made based on information available as of the date hereof, and Action Products International, Inc. assumes no obligation to update such forward-looking statements. Editors and investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause Action Products International, Inc.'s actual results to differ materially from those in these forward-looking statements. Such risks and uncertainties include but are not limited to demand for Action Products International, Inc.'s products and services, our ability to continue to develop markets, general economic conditions, our ability to secure additional financing for Action Products International, Inc. 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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