Koala Corporation Announces Asset Sale

DENVER, Oct. 7  /PRNewswire-FirstCall/ -- Koala Corporation (Pink Sheets: KARE) today announced the sale of the assets of Koala Surfaces, Inc., a wholly owned subsidiary of the company.  Koala Surfaces markets and distributes playground safety surfacing under the trade name Fibar Systems.

The transaction is valued at approximately $3.1 million, consisting of $800,000 in cash and the assumption of $2.3 million in liabilities.  Koala applied all cash proceeds from the transaction toward the outstanding balance of Koala's senior debt.

Koala also announced the resignation of James A. Zazenski from his position as a member of the Board of Directors of Koala.

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.  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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