SOURCE: Action Products International Inc.

August 16, 2007 11:10 ET

Action Products Int'l Reports First Half Results

Action Products Succeeds in Cost Containment and Bottom Line Improvement on Reduced Revenue

ORLANDO, FL--(Marketwire - August 16, 2007) - Action Products Int'l Inc. (NASDAQ: APII), a branded consumer leisure products company, reported financial results for the six months ended June 30, 2007. Financial highlights include reductions in operating expenses and lowered operating loss as compared to the first half of 2006.

Sales for the period were consistent with management's expectation, given the stated objective of turning away from off-price discount retailers. The company has made progress in its conscious effort to position their brands for greater brand equity with resulting higher margins.

"Based on our internal investments in the first half of this year, in product development, sales, and marketing, we are confident we will see increasing revenue returning in subsequent periods. In this first half however, we chose to forgo sales with discount retailers that damage our brand equity with our core customers," said Richard Malagodi, the company's president & chief operating officer. "We are operating with a lower cost structure than we have in comparable periods, and we don't want sales that aren't profitable or are damaging to the value of our brands. In the first half we focused on increasing sales with our attraction and museum and independent retailers. Now our larger customers are returning with enthusiasm for our new products, and more disciplined approach to distribution and market positioning with consumers."

"The improvements in our bottom line are an indication that our cost containment program was effective," commented Ronald S. Kaplan, the company's chairman and chief financial officer. "We continue to monitor and control expense in line with sales performance, and are encouraged by the reception and publicity surrounding our upcoming new product releases. We expect a return to profitability in the mid-term. In addition to the company's improvements in operating expense and the new product development, we have reinvigorated our efforts to expand through external, or mergers and acquisitions, growth. Growing internally and externally are equally important to meet the expectations of our shareholders."

About Action Products International Inc.

Action Products International Inc. (APII), based in Orlando, Fla., is a branded consumer products manufacturer, emphasizing edu-taining and positive leisure brands. Action Products consumer brands span activities, arts, crafts, juvenile products and toy categories. Its products are marketed and sold to retailers and consumers.

Visit the Company's Web sites at www.apii.com and www.curiositykits.com.

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

  • Contact:
    Marketing & Media:
    Wendy Jo Moyer
    Email Contact
    Action Products International Inc.
    (407) 660-7221

    Investor & Analyst:
    Richard Malagodi
    President/COO
    Email Contact
    (407) 660-7207

    Ronald Kaplan
    Charmain/CEO/CFO
    Email Contact
    (407) 660-7204