"As one of the world's leading toy retailers, FAO Schwarz is well-known for carrying toys of the very highest quality and providing its customers with an unforgettable retail experience," commented Ron Kaplan, Chief Executive Officer of Action Products International, Inc. "The strong retail presence of the new Jay Jay The Jet Plane (JJJP) Wooden Adventure System in FAO Schwarz reflects the industry's perspective on the quality and potential of the line. The display within the flagship store will showcase the line to visitors from around the world and provide valuable exposure for the JJJP Wooden Adventure System."

FAO Schwarz joins a growing list of JJJP Wooden Adventure System dealers, including hundreds of independent toy stores and specialty retailers. Additional announcements of distribution through major toy retailers are expected in the near future.

Based on the popular PBS and PBS Kids television series, the introductory assortment of the JJJP Wooden Adventure System features wooden characters including child favorites Jay Jay(TM), Tracy(TM), Herky(TM), Snuffy(TM), and Revvin' Evan(TM), as well as buildings from Jay Jay's home, Tarrytown Airport, a Character Carry-All case, and a Tarrytown Playmat(TM). Additional characters and playset components are planned for release throughout 2003.

About FAO Schwarz

Founded in 1862, FAO Schwarz has long been recognized as the ultimate toy store. The company consistently delivers exclusive, unusual and trend-setting merchandise from around the globe. FAO Schwarz has designed its stores, catalogues and on-line shopping site in a uniquely interactive manner that involves customers with merchandise and creates a playful experience. The company currently operates 23 locations nationwide, including flagship stores in New York, Los Angeles, Orlando, San Francisco, Chicago, Las Vegas and Boston. FAO also produces The Ultimate Toy Catalogue, a direct mail catalogue that is distributed to more than eight million consumers annually, and offers its world-famous toys and specialty goods on-line at www.fao.com. FAO Schwarz is a division of FAO, Inc. which operates 270 stores under the trade names of FAO Schwarz, The Right Start and Zany Brainy.

About Action Products International, Inc.

Action Products International, Inc. is a toy manufacturer emphasizing educational and non-violent products, including Jay Jay The Jet Plane Wooden Adventure System(TM), I Dig Dinosaurs® and I Dig Treasures® excavation activity kits, Space Voyagers® ("The most authentic Space Toys on Earth"), Climb@Tron(TM) window-climbing robots, Thomas & Friends(TM) Creative Play arts and crafts kits, Play and Store(TM) themed playsets and Drop Zone Extreme(TM) parachute toys. Its products are marketed and sold to toy stores, specialty retailers, Internet retailers, museums, zoos, theme parks, attractions, catalog companies, and educational markets in the United States and worldwide. The Company is headquartered in Orlando, Florida, and its common stock is listed on the Nasdaq SmallCap Market under the symbol "APII."