Exhibit 99.1


                    Koala Corporation Acquires Superior Foam

Acquisition  Adds  Unique  Line of Foam  Play  Products  to  Koala's  Children's
Activity Line

         DENVER, March  29/PRNewswire/ -- Koala Corporation  (Nasdaq:  KARE), an
integrated  provider of systems and solutions designed to help businesses become
"family   friendly,"   today  announced  it  has  acquired   certain  assets  of
privately-held  Superior Foam and Polymers,  Inc. The  acquisition was completed
for $5 million in cash and $1 million in  restricted  Koala stock.  Koala used a
line of credit from its bank to fund the cash portion of the acquisition.

         Founded  in Texas in 1991,  Superior  Foam  designs,  manufactures  and
markets  commercial  foam activity  products,  which are created in a variety of
customized  themes. The products are sold to many of the leading shopping malls,
amusement parks and water parks throughout the United States.  The Superior Foam
line will be folded into Koala's existing line of children's activity products.

         "This is a highly  innovative and profitable  product line for which we
believe there is a large,  untapped market," said Mark Betker,  Koala's chairman
and CEO. "This line also is a highly strategic  addition to our business,  as it
further expands our umbrella of family-friendly products and solutions, has high
growth potential and introduces us to new market niches. Additionally,  Superior
Foam adds an exciting new dimension to our children's activity product line."

         Betker  said  Superior  Foam has a  talented  management  team that has
successfully  developed a unique product line with outstanding growth potential.
"As a member of the Koala  family,  this  product  line will also benefit from a
much  larger and more  aggressive  sales and  distribution  network,  which will
expose Superior Foam to an array of important new market  opportunities," Betker
said.  "Additionally,  Superior Foam  prominence in the water park industry will
improve  Koala's  profit in a market in which we ultimately  plan to have a much
larger presence."

         A key competitive advantage enjoyed by Superior Foam is its proprietary
process for applying specialized urethane coatings,  which make products durable
and resistant to extreme  weather  conditions.  From its operations near Austin,
Texas,  Superior  Foam sells both  off-the-shelf  and  customized  foam activity
units.  Product  themes  range from  giant-sized  cuisine -- such as waffles and
fried eggs -- to zoo animals to pirate ships.

         Founded in 1986, Koala Corporation is an integrated provider of product
systems and solutions  designed to help business  become "family  friendly." 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" brand name.  Koala's  strategic  objective  is to address the growing
commercial  demand for products and solutions that help  businesses  create safe
and family friendly atmosphere 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
Annual  Report  on  Form  10-KSB  on  file  with  the  Securities  and  Exchange
Commission.

CONTACT:
Mark A. Betker, Chairman and CEO of Koala Corporation,
303-574-1000; or
Geoff High of Pfeiffer Public Relations, 303-393-7044,
For Koala Corporation Web site:  http://www.koalabear.com/