Exhibit 99.1

FOR IMMEDIATE RELEASE                                                       NEWS
---------------------
September 27, 2001                                   Nasdaq National Market-KARE

             KOALA CORPORATION OBTAINS RESTRUCTURED CREDIT FACILITY

DENVER, Colorado - Koala Corporation (Nasdaq National Market-KARE), a
diversified business-to-business provider of family-friendly solutions, today
announced it has obtained a restructured credit facility from its senior
lenders.

The credit facility includes a $28 million term loan that will mature on
September 26, 2004, but will be amortized over seven years. The loan will bear
interest at the bank's prime rate plus 2.5%. Principal on the loan will be
payable quarterly, while interest payments will be made monthly.

The credit facility also includes a one-year, $14 million revolving line of
credit. The line will bear interest at the bank's prime rate plus 2.5%, and
interest will be payable monthly. A monthly borrowing base formula calculated
based on levels of accounts receivable and inventory will govern availability
under the line of credit. At the time of closing, availability under the line
was approximately $11.3 million, of which approximately $10.5 million had been
utilized by the Company.

The agreement contains provisions that allow for a reduction of the interest
rate on both the term loan and line of credit. Any interest rate reductions will
be based on the reduction of the Company's leverage ratio, which is calculated
by dividing the total funded debt by EBITDA (earnings before interest, taxes,
depreciation and amortization).

"Our senior lenders have been supportive during our recent negotiations and we
are very pleased with the terms of our new banking agreement," said Mark Betker,
chairman and CEO. "Of course, as we have stated in the past, one of our primary
corporate objectives going forward will be the continued aggressive reduction of
our long-term debt."

Founded in 1986, Koala Corporation is an integrated provider of products and
solutions designed to help businesses 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" 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. Such statements include projections regarding future
earnings results and are based upon the Company's current expectations and
assumptions, which are subject to a number of risks and uncertainties. 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 filings with the Securities and
Exchange Commission including its most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q.

                                       ###

                                    CONTACTS:

Koala Corporation                           Pfeiffer High Public Relations, Inc.
Mark Betker, CEO                                                      Geoff High
303/574-3400                                                        303/393-7044
                                                          geoff@pfeifferhigh.com