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Action Products International, Inc. (APII) Releases 2009 Sales Strategy to Greatly Improve Sales by Maximizing Asset Potential

Given the current volatile economic climate, most companies might be tempted to keep their cards close to their vest when it comes to their future plans and sales goals. Not so with Action Products International, Inc. (API).

Today, the Orlando, Florida based toy manufacturer and distributor offered the market a glimpse of what it expects to achieve in terms of sales for 2009 and how it will meet its goals. Even with consumer sentiment at its lowest levels in decades, API says its assets can generate better returns for shareholders.

API has recently changed its management team and the new team believes a sales target of $12 million for 2009 is achievable. Of that $12 million, about $8.5 million, or 70% could come from existing product sales with the balance coming from newly acquired products and products that API already owns but have not previously been offered for sale to the public. A crucial element of management’s 2009 sales plan will be additional cash to acquire new products and market those new and previously non-marketed products.

API management appears to have its work cut out for it. Its year to date results as disclosed in its most recent 10K filing with the SEC show that API generated only $448,200 in cash from its operations for the nine months ended September 30, 2008. Regardless of how you feel about lawyers, API is grateful for theirs at this point in time. But for the collection of a lawsuit judgment in the amount of $3,233,700 and a decrease in its inventory of $629,700, cash flow would have been negative.

However, API is facing its problems head-on. In addition to the key management changes, API is attacking its costs and working on plans to boost sales, such as entering contracts with specialized outside sales representatives and planning what it expects will be successful mass marketing campaigns in existing and new markets.

Asked to comment on API’s plans for 2009, Neil Swartz, Chief Executive Officer, acknowledged that sales have to improve. “Growth in our business is crucial for our success”, he said. Swartz said that API’s “management team has outlined aggressive growth plans for new channels in 2009.” He continued, “We believe with our award winning [product] brands…, the sales channels we are in now, the new sales initiatives we are implementing and new financing, we expect to achieve our 2009 objectives and be better positioned for the future.”

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