Koala Corporation Announces Asset Sale

Koala Corporation Announces Asset Sale 


DENVER, June 24  /PRNewswire-FirstCall/ -- Koala Corporation (Pink Sheets:
KARE) today announced the sale of the assets of its Superior Foam division to
Playtime LLC.  Playtime is a Colorado-based supplier of themed soft foam and
hard sculpted play products.

The transaction is valued at approximately $2.35 million, consisting of $2.1
million in cash and $250,000 in the form of a promissory note payable in one
year.  Koala applied all cash proceeds from the transaction toward the
outstanding balance of Koala's senior debt.  Koala intends to continue to
market soft foam play products, and has entered into an exclusive supply
agreement with Playtime that calls for Playtime to provide all soft foam play
products marketed by Koala.

Koala expects that its 2004 audited financial statements will be completed soon
and intends to include the audited financial statements in the annual meeting
materials that will be sent to shareholders.

Statements made in this news release that are not historical facts may be
forward-looking statements.  Such statements include statements of belief, such
as statements about the Company's future operations and the projections
regarding future events, such as prospects for the Company's business in the
future, and are based upon Koala's current expectations and assumptions, which
are subject to a number of risks and uncertainties.  These include management's
ability to successfully implement the Company's business plan with its
remaining business units, and Koala's ability to retire its outstanding
remaining bank debt on or before December 31, 2005, or at all. Actual results
may differ materially from those projected in any forward-looking statement. 
There are a number of important factors that could cause actual results to
differ materially from those anticipated by any forward-looking information. 

DATASOURCE: Koala Corporation



CONTACT:  Jeff Vigil of Koala Corporation, [phone]

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