Exhibit 99.1
FOR IMMEDIATE RELEASE
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March 1, 2000                                                             NASDAQ
                                                            National Market-KARE


           KOALA CORPORATION ANNOUNCES ACQUISITION OF SCS INTERACTIVE

      Designer of Innovative Water Play and Interactive Play Installations
                        Complements Modular Play Segments

DENVER,   Colorado  -  Koala  Corporation  (Nasdaq  National   Market-KARE),   a
diversified  provider  of  family  friendly  solutions  for  business  including
parental  convenience  and children's  activity  products,  today  announced the
acquisition  of  Tillamook,  Oregon  based SCS  Interactive  Inc, an  innovative
producer  of  interactive  play  installations  for  several  worldwide  markets
including family entertainment centers, water parks and amusement parks.

SCS reported  income from operations of  approximately  $3.0 million on sales of
approximately  $18.8  million for their  fiscal year ended  September  30, 1999.
Terms of the  transaction  call for SCS  Interactive to receive $20.2 million in
cash,  $5.1 million in Koala common stock and  additional  consideration  in the
form of earn-outs. Koala financed the cash portion of the transaction through an
increase  in its bank line of credit to $40  million.  SCS'  operations  will be
included in Koala's modular play business segment

SCS,  founded in 1987,  helped to invent the interactive  water play industry by
combining  slides,  fountains and  waterfalls  with water  cannons,  interactive
elements and attractive  themes to create new ways for families to play together
in water parks.  Bolstered by the success of this innovation,  SCS created a dry
variation of their interactive designs in 1996, successfully marketing the "foam
factory" to family attractions around the world.

Through years of innovation,  SCS has amassed  patents and trademarks on several
of the most  unique and  attractive  components  used in water  play  structures
today. The intellectual  property rights to these systems are substantial assets
that Koala will acquire through this transaction.

In addition to their successful products, SCS brings several talented executives
to the Koala family.  SCS' management  team represents  decades of experience in
the play attractions industry. Their ability to construct and market attractive,
innovative,  new products for the family  entertainment  center,  water park and
amusement  markets  resonates with Koala's ongoing strategy of brand development
around solutions for family friendly facilities.

"We are very excited to welcome SCS  Interactive to the Koala family," said Mark
Betker, CEO of Koala  Corporation,  "They are an established and respected force
in the recreation and amusement  industry.  Their products  continue to reinvent
the way families play in the world's best known amusement parks, water parks and
municipal  pools.  We are  confident  that  they  will  be a  positive  creative
contribution to the Company and that they will help us to secure our position as
the world's leading provider of family friendly solutions."

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Founded in 1986,  Koala  Corporation  is an integrated  provider of products and
solutions  designed to help business become "family friendly" and allow children
to play safely in public.  The Company  develops  and markets a wide  variety of
infant and child  protection and activities  products,  which are marketed under
the Company's  recognizable  "Koala Bear Kare(R)" brand name.  Koala's strategic
objective  is to address the  growing  commercial  demand for safe,  public play
environments  for  children,  as  well  as  products  and  solutions  that  help
businesses create family-friendly atmospheres for their patrons.

                  Statements  made in this news release that are not  historical
facts may be forward looking  statements.  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. A description of risks and
uncertainties  attendant to Koala Corporation and its industry and other factors
which could affect the Company's financial results are included in the Company's
Securities and Exchange Commission Annual Report on Form 10-KSB.

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                                    CONTACTS:
                                Koala Corporation
                                  303.574.1000
                                www.koalabear.com


Mark A. Betker                                           Jeff Vigil
Chairman and CEO                                         Chief Financial Officer

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