EXHIBIT 99.1

ACTION PRODUCTS INTERNATIONAL, INC. AND SUBSIDIARY
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)

							Adjustment
							Receipts		Pro Forma
				November 30,			Equity		November 30,
				2002			Investment		2002
ASSETS
CURRENT ASSETS
Cash and cash equivalents				$	591,800		$	187,700	$	779,500
Accounts receivable, net of an allowance for doubtful accounts of $67,400					1,434,200					1,434,200
Inventories, net					1,075,300					1,075,300
Prepaid expenses and other assets					329,048					329,048
			TOTAL CURRENT ASSETS		3,430,348					3,618,048
PROPERTY, PLANT AND EQUIPMENT					2,153,875					2,153,875
Less accumulated depreciation and amortization					(1,150,229	)				(1,150,229	)
		NET PROPERTY, PLANT AND EQUIPMENT			1,003,646					1,003,646
EXCESS OF COST OVER FAIR VALUE OF ASSETS ACQUIRED, NET					782,400					782,400
OTHER ASSETS					774,100					774,100
			TOTAL ASSETS	$	5,990,494				$	6,178,194
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Current portion of installment notes payable and obligation under capital lease				$	85,800				$	85,800
Accounts payable					395,800					395,800
Accrued expenses, payroll and related expenses					114,600					114,600
Borrowings under lines of credit					1,279,000					1,279,000
Other Current Liabilities					46,100					46,100
			TOTAL CURRENT LIABILITIES		1,921,300					1,921,300
MORTGAGE PAYABLE & OBLIGATION UNDER CAPITAL LEASE					744,342					744,342
DEFERRED INCOME TAXES					7,500					7,500
DEFERRED REVENUE					102,100					102,100
			TOTAL LIABILITIES		2,775,242					2,775,242
SHAREHOLDERS’ EQUITY
Preferred Stock - 10,000,000 shares authorized, zero shares issued and outstanding										—
Common stock — $.001 par value; 15,000,000 shares authorized; 3,267,070 shares issued					3,200					3,200
Treasury Stock — $.001 par value; 40,600 shares					(41	)				(41	)
Additional paid-in capital					4,449,341					4,449,341
Accumulated Deficit					(1,049,548	)				(1,049,548	)
Stock subscriptions receivable					(187,700	)		187,700		—
			TOTAL SHAREHOLDERS’ EQUITY		3,215,252					3,402,952
	TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			$	5,990,494				$	6,178,194

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