ORLANDO, Fla., Sept. 28, 2004 (PRIMEZONE) -- 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, today announced that Chairperson Warren Kaplan and other members of the Kaplan family have turned in their options on 120,000 shares of APII at $4.50 for no consideration. At the time the option was granted, the options were $1.00 (30%) over the market price. The options were issued as inducements for the Kaplans to loan the company $600,000 and to stand by for an additional $400,000 to acquire the Curiosity Kits(R) assets. The high-risk, unsecured loan the family made was at a 6% annual interest rate.
Mr. Kaplan noted that having the outstanding options caused the company to have to expense $10,000 a month under the Black-Sholes method of an option calculation, despite the fact the option was and is still far out of the money. This charge hurt the company's reported bottom line. For the betterment of all the stockholders and under a suggestion by the company's Board, the Kaplan family agreed to make this sacrifice. The Kaplans currently own approximately 50% of APII common stock. Mr. Kaplan said, "We disagree with the current evaluation method of accounting for options, which resulted in this course of action. Although this year was much more challenging than originally forecasted, we expect to see great comparisons in 2005 and hope that the stock market values our business performance."
The company expects to release third quarter results on Nov. 1 and is scheduling a conference call for 4:15 P.M. that day.
ABOUT ACTION PRODUCTS INTERNATIONAL
Action Products International, Inc. is a leading designer and manufacturer of educational and positive branded toys emphasizing fun. Quality brands including JAY JAY THE JET PLANE Wooden Adventure System(TM), I Dig Dinosaurs(R) and I Dig Treasures(R) excavation activity kits, Space Voyagers(R) ("The most authentic Space Toys on Earth"), Wild Climbers(TM) and Climb@Tron(TM) window-climbing animals and robots, Play and Store(TM) themed playsets, Kidz Workshop(TM) wooden projects, and Drop Zone Extreme(TM) parachute toys, and Curiosity Kits(R), a leading, award-winning specialty brand for kids' craft and activity kits. Its products are marketed and sold worldwide to specialty retailers, museums, toy stores, theme parks, attractions, zoos, catalog companies, Internet retailers, and educational markets.
For more information on Action Products' toys, email marketing@apii.com or visit the Company's web site at www.apii.com.
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, and intellectual property rights and 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.