Action Products Int'l (APII) Comments on Recent Stock Price Volatility

December 26, 2008 10:01 AM EST

Action Products Int'l, Inc. (NASDAQ: APII) reported that management does not know of any reason, from the company's operations or ongoing business activity, relating to a recent decline in the company's stock price and higher-than-usual volume. The company has made no changes to previous projections, nor has management received notice of any material new reports by analysts, that management believes would cause such trading activity.

Recently, large institutional holder FIMG made public that it is closing its Utopia Funds, a group of mutual funds, due to shareholder redemptions and its change of strategy. Utopia Funds reported approximately a 20% stake in APII. According to a public letter to Utopia shareholders, "The ultimate reason for the closing of the Utopia Funds involves fees and expenses."

Action's new CEO, Neil Swartz, states, "It is management's opinion nothing has occurred during the past week in the company's day-to-day operations or long-term prospects that would account for the sudden downturn in the price of APII shares. Our most recent major developments, as announced previously, are continuing to progress in reducing expenses, the introduction of new products, and awards and accolades suggesting higher sales levels in 2009. We have continued to execute our business plan as described in our public reports and filings."

Action Products International, Inc. ("APII") is a global manufacturer and distributor of brand-focused consumer products with award winning brands in the educational toys and crafts product segment. [SM]

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