EXHIBIT 99.1


FOR IMMEDIATE RELEASE                            CONTACT:  David Kronfeld
                                                           Kekst and Company
                                                           (212) 593-2655


                 INDEPENDENT INVESTIGATION FINDS MATTEL'S
                         PRACTICES CONSISTENT WITH
                 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
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     New York, NY, July 16, 1996 -- On July 16, 1996, the Audit Committee
of the Board of Directors of Mattel, Inc. received and accepted a report
prepared by the law firm of Davis Polk & Wardwell concerning allegations of
accounting irregularities at Mattel.  Starting with Davis Polk's retention
in early April 1996, Davis Polk, with the expert assistance of the accounting
firm of Ernst & Young LLP, conducted an investigation into allegations raised
by Michelle Greenwald, a former Senior Vice President at Mattel, who was
terminated in July 1995.

     Greenwald's allegations of accounting irregularities fall into two
categories - (1) general allegations that Mattel did not account properly
for sales and certain costs associated with sales; and (2) more specific
allegations that Mattel failed to account properly for certain royalty
obligations to The Walt Disney Company.

     Davis Polk and Ernst & Young found no evidence that Mattel accounted
for sales and costs associated with sales in a manner which is inconsistent
with generally accepted accounting principles ("GAAP").  Davis Polk and
Ernst & Young conducted a factual investigation and analysis of Mattel's
policies and practices with respect to accounting for sales recognition,
sales incentives, and customer-related costs.  Davis Polk and Ernst & Young
also investigated whether Mattel had entered into any consignment sales
with customers.  Davis Polk and Ernst & Young found that none of the issues
raised by Greenwald concerning consignment sales or improper accounting
treatment for sales and costs associated with sales is supported by the
facts.

     With respect to the Disney royalty obligations, Davis Polk and Ernst &
Young concluded that Mattel's accounting treatment for the Disney royalties
represented a reasonable application of GAAP given the facts and
circumstances as they existed at the time the accounting decisions were
made.  Davis Polk and Ernst & Young noted that the determination not to
accrue for the royalties at issue was considered by Mattel with its outside
auditor, Price Waterhouse, at the time the accounting decisions were made
and that Price Waterhouse concurred with the Company's judgment.

     Furthermore, Davis Polk and Ernst & Young have concluded that the
amount of royalties at issue is clearly immaterial to Mattel's earnings for
fiscal year 1994.

     The Audit Committee will submit the report to the Board of Directors
and considers the inquiry closed.