
For Immediate Release                      Contact: John T. O'Neill
July 19, 1995                               Telephone: 401-431-8500



                 HASBRO, INC. STOPS VIRTUAL REALITY
               DEVELOPMENT AND ANNOUNCES EXPECTATIONS
                       FOR SECOND QUARTER 1995



		Pawtucket, RI (July 19, 1995) -- Hasbro, Inc. (HAS:ASE) 
announced that it has stopped its efforts related to the 
development of a mass-market virtual reality game system.

	"In 1992, we began development of a home virtual reality game 
system which would give consumers a real point of difference", said 
Alan G. Hassenfeld, Chairman and Chief Executive Officer. "We have 
created that system but at a price which would simply be too 
expensive to mass-market. We believe, however, that there are many 
other applications for the proprietary technology we have developed 
and intend to actively exploit that technology in various areas, 
including education, training and other commercial applications."

	Mr. Hassenfeld further commented, "This decision will 
adversely impact our second quarter pre-tax results by $31,100,000, 
the estimated costs associated with such action. The total pre-tax 
effect of this development activity, including the aforementioned 
provision, is anticipated to approximate $33,400,000 and 
$36,400,000 during the second quarter and six months of 1995, 
respectively. During the comparable periods of 1994, the amounts 
approximated $3,800,000 and $6,800,000, respectively, and for the 
full year approximated $14,200,000."

	He also noted, "Absent the impact of this action, however, we 
anticipate that our second quarter results will exceed those of a 
year ago, with revenues up approximately 8% and a modest growth in 
net earnings." For the second quarter of 1994, the Company reported 
revenues of $444,324,000 and net earnings of $1,634,000.

	Mr. Hassenfeld concluded, "Although we are stopping our 
efforts with respect to this mass-market virtual reality game 
system, the Company will continue to be actively involved in the 
development of electronic edutainment software such as the 
previously announced CD ROM version of Monopoly(R) - - the first 
game of its kind to use the Internet as its playing table - - and 
Playskool's Funware(TM) for preschoolers." 
	

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