EXHIBIT 99.1


          YES! ENTERTAINMENT CORPORATION ANNOUNCES PRIVATE PLACEMENT
              OF CONVERTIBLE SUBORDINATED DEBENTURES AND WARRANTS

     PLEASANTON, CALIFORNIA, FEBRUARY 10, 1997 --  YES! ENTERTAINMENT
CORPORATION (Nasdaq NM Symbol:  YESS) today announced that it has successfully
completed a private placement of 5% convertible subordinated debentures and
300,000 warrants from which it has received gross proceeds of $10,000,000.  The
debentures are convertible into common stock at variable prices depending on
market conditions, and the warrants are exercisable for Common Stock at $7.58
per share.

     The direct investment was made with funds advised by Brown Simpson LLC, a
New York based fund advisory and capital management firm.  Pennsylvania Merchant
Group acted as placement agent for the company.

     The company plans to use the net proceeds from the direct investment for
working capital and general corporate purposes.

     The direct investment of the debentures and warrants has not been
registered under the Securities of Act of 1933, as amended, or applicable state
securities laws, and may not be offered or sold absent registration under the
Securities Act and applicable state securities laws or available exemptions from
registrations.  However, the company is obligated to file a registration
statement for the sale of the Common Stock underlying the debentures and the
warrants.

     Sol Kershner, chief financial officer, noted, "The proceeds from the
private placement, combined with our existing bank line as well as internally
generated cash flow, are expected to satisfy the company's working capital
requirements for 1997."

     YES! Entertainment Corporation develops, manufactures and markets toys and
other entertainment products, including a variety of interactive and educational
products.  YES! uses innovative technology to design products that are fun for
children and build on their natural creativity.

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