Exhibit 99.1

                        Press Release dated March 3, 1997



                 PLATINUM ENTERTAINMENT AND K-TEL INTERNATIONAL
                  SIGN DEFINITIVE AGREEMENT FOR SALE BY CERTAIN
                          K-TEL MUSIC BUSINESS ASSETS

DOWNERS GROVE, IL/PLYMOUTH, MN, March 3, 1997. -- Platinum Entertainment, Inc.
Inc. (NASDAQ: PTET) has entered into a definitive agreement with K-tel
International, Inc. (NASDAQ: KTEL) for the sale by K-tel to Platinum of certain
music business assets.

         Under the terms of the agreement, Platinum will acquire K-tel's
worldwide music business assets, with the exception of K-tel's European music
business, through the purchase of the stock of K-tel International (USA), Inc.
and Dominion Entertainment, Inc., both wholly-owned subsidiaries of K-tel
International.

         The acquisition, which has been approved by the boards of K-tel and
Platinum, involves a purchase price of $35 million subject to certain
adjustments. The purchase price is to be paid in cash at closing.

         Closing is expected to occur between 90 and 180 days from the date of
this announcement. K-tel keeps all profits until closing.

         After the closing, K-tel will retain its music business in Eastern and
Western Europe and the former Soviet Republic and will receive an exclusive
license to use the Dominion and K-tel (USA) music catalog in these territories
and a non-exclusive license of the catalog in Africa and the Middle East. The
licenses will be royalty free except for third party amounts payable from the
use of the masters.

         K-tel will also retain its consumer products, music infomercial,
direct response and video businesses.

         K-tel International, Inc., headquartered in Plymouth, MN, operates one
of the largest independent record companies in the U.S. Its catalog of over
3,500 owned or controlled recordings includes performances by classic artists
such as Chubby Checker, Bobby Sherman, Leslie Gore, Percy Sledge, Lee Greenwood,
and hundreds of others. K-tel is also one of the world's leading compilation
packagers and marketers of pre-recorded music. Music products are distributed
through K-tel's own proprietary distribution system, enabling K-tel to maintain
control over the marketing and promotion of its music products, selling and
fulfilling its orders to retail and rack jobbers on a direct basis.

         For the year ended June 30, 1996, on an audited basis, and for the six
month period ending December 31, 1996, on an unaudited basis, the music business
being acquired by Platinum from K-tel recorded gross revenues of $42.6 million,
and $18.8 million respectively. The closing of the acquisition is subject to the
securing of financing by Platinum, K-tel's shareholder approval and other
customary conditions.

         Steve Devick, Platinum Entertainment's president and chief executive
officer, said, "We are tremendously excited about this acquisition. In its 35
years of business, K-tel has developed one of the world's most famous libraries
of recorded music, and has established an identity that is unique in the
industry. The music business of K-tel is well-managed and profitable, and
combining the strengths of our recent acquisition of Intersound, Inc. with the
strengths of K-tel makes tremendous business sense all around. We look forward
to having the K-tel employees in the acquired business join our family and
contribute to our growth. This acquisition clearly identifies Platinum as one of
the largest independent record companies."

         David Weiner, president of K-tel International states, "This
transaction allows our shareholders to better realize the intrinsic value of
K-tel's catalog of master recordings. This valuable asset is carried on our
balance sheet at only nominal value and, in our opinion, has not been adequately
reflected in our company's public market capitalization. Platinum will be a good
home for these assets and will provide our employees of the sold businesses an
opportunity to be part of a larger music company. K-tel will continue to focus
and grow our North American operations in our music infomercial, video, consumer
products and direct response businesses, and will continue to own and operate
our music and other businesses in the United Kingdom, Germany and Finland."

         The total gross revenue of K-tel's retained businesses were $43.6
million for its fiscal year ended June 30, 1996, and were $21.4 million for the
six months ended December 31, 1996. On a proforma basis, giving effect to the
transaction, the net book value of K-tel as of December 31, 1996, would have
been approximately $39.1 million compared to $4.1 million as actually reported.

         K-tel International, Inc. develops, markets and distributes a variety
of packaged consumer entertainment (music and video) and consumer convenience
products worldwide. K-tel markets its product lines either to retailers, or
through mail order (tv or print), or through licensees throughout the world.
K-tel has companies/operations in the United States, United Kingdom, Germany and
Finland.

         Platinum Entertainment, Inc. produces, licenses, acquires markets and
distributes high quality recorded music for a variety of music formats. Platinum
and its wholly-owned subsidiaries currently produce music for Gospel, Adult
Contemporary, Country, Blues, Urban, Dance, Classical and Themed Music formats,
primarily under the CGI Records, Light Records, River North Records, Intersound,
and House of Blues labels. Platinum's products include new releases, typically
by artist established in a particular format, as well as compilation and
repackagings of previously recorded music that enable Platinum to exploit its
catalog of master recordings.

         This press release contains forward-looking statements (within the
meaning of the Private Securities Litigation Reform Act of 1995) that involve
substantial risks and uncertainties. When used in this press release, the words
"anticipate," "believe," "estimate" and "expect" and similar expressions as they
relate to the Companies or its management are intended to identify such
forward-looking statements. A number of important factors could cause the
Companies' actual results, performance or achievements for fiscal 1997 and
beyond to differ materially from those expressed; in such forward-looking
statements. These factors include, without limitation, commercial success of the
Companies' repertoire, changes and costs related to acquisitions, relationships
with artists and producers, attraction and retention of key personnel, general
economic and business conditions and enhanced competition and new competitors in
the recorded music industry, and other factors described in the Companies'
filings with the Securities and Exchange Commission.

                                     # # #

Contacts: For Platinum Entertainment         For K-tel International
          
          Douglas C. Laux                    Mark Dixon
          Chief Financial Officer            Vice President and Chief
          (630) 769-0033 x 234                 Financial Officer
                                             (612) 559-6820