Action Products International Inc (AHIX) SEC Filing 10-Q Quarterly report for the period ending Monday, June 30, 2008

Exhibit 99.1

ACTION PRODUCTS ISSUES LETTER TO SHAREHOLDERS

Letter Outlines Operational Improvements and Plans for Year Ahead

ORLANDO, Fla. – (MARKET WIRE) – March 17, 2008 – Action Products International Inc. (NASDAQ-CM: APII), the global manufacturer and distributor of brand-focused educational toys and products, has issued the following letter from the company’s Chairman and CEO Ron Kaplan:

Dear Fellow Shareholders:

With many recent company events we would like to take a moment to update you on our progress.

Operationally Action Products is currently in the midst of a turnaround. Management has launched several new corporate initiatives designed to re-brand the company as the toy industry’s leading manufacturer of safe, fun, and educational products for children. This realignment of resources and capital is expected to have long-lasting effects on our ability to react expeditiously to consumer preferences and cultivate a culture tailored to our customers and shareholders. The following points highlight some key events from 2007 and our outlook for 2008:

Senior Management and Advisory Team

With the help of outside consultants, bringing expertise in operations, organizational analysis and development, we have strategically recruited both a new chief financial officer and a vice president of marketing and sales. These two additions have already reshaped our management team and will allow us to operate as a more cohesive unit focused on implementation of new operational efficiencies during 2008. It is my expectation that the reengineering of our management will be a cornerstone of operational growth initiatives.

In addition to the analysis and strengthening of our management team, we are expanding our sales force, to yield increases in our customer base, as our market focus widens to increase our distribution with specialty chains in the global marketplace. In the coming year, we expect to selectively add additional top-notch talent with the goal of increasing Action’s distribution in our traditional U.S. markets and internationally. In addition, we are reinvigorating our brand marketing focus with a keen emphasis on consumer publicity, promotion, and meeting the increasing demands of a web-based marketplace.

High-Margin Sales Channels

We finished 2007 with our core retail dealers anticipating our new product lines. These dealers reported good holiday sales due in part to the media’s coverage concerning the safety of toys sold by large box mass-marts. Review of the data has indicated that specialty retail stores, chains, and independents, have become stronger and more skilled at operations. This industry momentum supports our strategy of using high-margin branded products and will lead us to anticipated growth from our targeted distribution channels.

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