FOR IMMEDIATE RELEASE:

 Contact:
  Hasbro: Wayne S. Charness (News Media) 401-727-5983
          Renita E. O'Connell (Investor Relations) 401-727-5401
  Galoob: Kathleen R. McElwee 650-952-1678 x2210

HASBRO ANNOUNCES DEFINITIVE AGREEMENT TO ACQUIRE GALOOB TOYS, INC.

Pawtucket, RI (September 28, 1998) - Hasbro, Inc. [ASE:HAS] announced today 
that it has entered into a definitive agreement to acquire Galoob Toys, 
Inc. [NYSE:GAL], an international toy manufacturer whose leading brands 
include Micro Machines® miniature-scale boys' toys, Star Wars(TM) 
small-scale figures and vehicles, Spice Girls(TM) fashion dolls, and Pound 
Puppies® mini-dolls. The purchase price is $12 per common share of Galoob, 
payable in cash, for a total transaction value of approximately $220 
million. Closing is expected in the fourth quarter of 1998.

"Galoob is a tremendous addition to our rich brand portfolio," said Alan G. 
Hassenfeld, Chairman and CEO of Hasbro, Inc. "This acquisition will allow 
us to build critical mass worldwide in the fast-growing vehicles category 
by combining our popular Winner's Circle(TM) racing cars with Galoob's 
highly successful Micro Machines®. We are also excited about adding 
Galoob's tremendously popular Spice Girls(TM) line to our portfolio," 
Hassenfeld continued.

"In addition, the combination of Galoob's Star Wars(TM) small-scale figures 
and vehicles license with Hasbro's extensive Star Wars(TM) license will 
allow us to further develop this global brand franchise," Hassenfeld added.

By fully integrating the worldwide operations of Galoob into Hasbro, the 
Company expects to achieve economies of scale and cost savings in a variety 
of areas including product sourcing, manufacturing, marketing, advertising 
and administrative support functions. Hasbro expects the transaction will 
be modestly dilutive to earnings in 1998 and accretive beginning in 1999.

Mark D. Goldman, President and Chief Executive Officer of Galoob, said, "We 
are excited about joining Hasbro. Hasbro's global reach and resources will 
enormously expand the potential of Galoob's brands, especially Star 
Wars(TM) and Micro Machines®."

The merger agreement with Galoob calls for a wholly owned subsidiary of 
Hasbro to commence a tender offer no later than October 2, 1998 for all of 
Galoob's approximately 18 million outstanding common shares. The offer will 
be conditioned upon, among other things, the expiration or earlier 
termination of the applicable waiting period under the Hart-Scott-Rodino 
Antitrust Improvements Act of 1976 and the tender of a majority of the 
common shares outstanding on a diluted basis of Galoob. Following the 
consummation of the offer, Hasbro's subsidiary will be merged with Galoob 
and any remaining Galoob common shares will be converted into the right to 
receive $12 per share in cash.

Founded in 1957, Galoob Toys' current product categories include miniature 
vehicles, led by Micro Machines®; entertainment-based toys, led by Star 
Wars(TM) ; mini-dolls, comprised of the number one mini-doll brand in 1997, 
Pound Puppies®; newly introduced authentic military vehicles, figures and 
playsets led by Battle Squads(TM) ; a series of Titanic collector fashion 
dolls and celebrity-based fashion dolls. The Company's first celebrity 
fashion doll offering is the highly successful Spice Girls(TM) line based 
on the British pop group. Micro Machines® is the most comprehensive line of 
miniature scale toys for boys in the world, embracing traditional vehicle, 
military and male action play patterns. Now in its eleventh successful 
year, the brand has generated over $1 billion in retail sales in the U.S. 
alone.

Hasbro, Inc. is a worldwide leader in the design, manufacture and marketing 
of toys, games, interactive software, puzzles and infant products. Both 
internationally and in the U.S., its Playskool®, Kenner®, Tonka®, OddzOn®, 
Super Soaker®, Milton Bradley®, Parker Brothers®, TigerÔ and Hasbro 
Interactive(TM) products, provide children and families with the highest 
quality and most recognizable toys and games in the world.

Galoob Toys, Inc. designs, develops, markets and sells high quality toys 
worldwide. For more information about the Company and its products, visit 
Galoob's World Wide Web site at http://www.galoob.com.

Hasbro: Certain statements contained in this release contain 
"forward-looking statements" within the meaning of the Private Securities 
Litigation Reform Act of 1995. Such forward-looking statements are 
inherently subject to known and unknown risks and uncertainties. The 
Company's actual actions or results may differ materially from those 
expected or anticipated in the forward-looking statements. Specific 
factors that might cause such a difference include, but are not limited 
to, the timely manufacture and shipping by the Company of new and 
continuing products and their acceptance by customers and consumers in a 
competitive product environment; economic conditions and currency 
fluctuations in the various markets in which the Company operates 
throughout the world; the continuing trend of increased concentration of 
the Company's revenues in the second half and fourth quarter of the year, 
together with increased reliance by retailers on quick response inventory 
management techniques, which increases the risk of underproduction of 
popular items, overproduction of less popular items and failure to achieve 
tight and compressed shipping schedules; the impact of competition on 
revenues, margins and other aspects of the Company's business; third party 
actions or approvals that could delay, modify or increase the cost of 
implementation of, the Company's Global Integration and Profit Enhancement 
program; and the risk that anticipated benefits of acquisitions may not 
occur or be delayed or reduced in their realization. The Company 
undertakes no obligation to make any revisions to the forward-looking 
statements contained in this release or to update them to reflect events 
or circumstances occurring after the date of this release.