Exhibit 99.1

BAM! ENTERTAINMENT ANNOUNCES FISCAL THIRD QUARTER RESULTS

San Jose, Calif. — May 13, 2003 — BAM! Entertainment® (NASDAQ: BFUN), a developer and publisher of interactive entertainment software, today reported results for its fiscal third quarter ended March 31, 2003.

The company reported net revenues for the fiscal third quarter of $2.9 million, a decrease of 59% from net revenues of $7.0 million for the same quarter of the prior fiscal year.

The operating loss and net loss for the quarter was $5.1 million, or 35 cents per share. In the same quarter of the prior year, the company sustained an operating loss of $5.9 million and a net loss of $6.2 million, equivalent to 43 cents per share.

During the quarter ended March 31, 2003, the company released three new products as compared to six products in the same quarter of the prior fiscal year. Products released in the quarter ended March 31, 2003 were:

Samurai Jack™: The Amulet of Time	Game Boy® Advance
Ed, Edd, n Eddy™: Jawbreakers	Game Boy® Advance
4x4 Evo 2™ (released in Europe only)	Sony® PlayStation® 2

“Our revenues reflect a smaller roster of new products delivered to market this quarter compared to a year ago, along with lower than expected reorders during the post-holiday selling season,” said Ray Musci, Chief Executive Officer of BAM! Entertainment. “While we are disappointed with our results, we continue to focus on improving operating margins and building the strength of the product portfolio scheduled for release in the second half of the calendar year.”

Key titles currently slated for release during the remainder of calendar year 2003 include: the first release of Carmen Sandiego for next generation consoles; Ice Nine, a stealth action game; an action-adventure game based on the popular Cartoon Network™ franchise The Powerpuff Girls™; and Wallace & Gromit in Project Zoo, the first product scheduled for release under the company’s agreement with Oscar award-winning Aardman Animation Studios.

BAM! Entertainment is currently displaying its fall lineup at the industry’s largest tradeshow, The Electronic Entertainment Expo (E3), which is being held at the Los Angeles Convention Center May 14-16, 2003. BAM! Entertainment will be showcasing its products in the convention center’s West Hall, room 510.

About BAM! Entertainment, Inc.

Founded in 1999 and based in San Jose, California, BAM! Entertainment, Inc. is a developer, publisher and marketer of interactive entertainment software worldwide. The company develops, obtains, or licenses properties from a wide variety of sources, including global entertainment and media companies, and publishes software for video game systems, wireless devices, and personal computers. The company’s common stock is publicly traded on NASDAQ under the symbol BFUN. More information about BAM! and its products can be found at the company’s web site located at www.bam4fun.com.

Editorial Contact: BAM! Entertainment, Inc.
Mika Kelly
Public Relations Manager
Tel.: (408) 298-7500 x323
E-mail: mkelly@bam4fun.com

This release contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current estimates and projections about BAM! Entertainment’s business, which are derived in part on assumptions of its management, and are not guarantees of

BAM! Entertainment’s future performance, as such performance is difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors. Such factors include, but are not limited to, those described in BAM! Entertainment’s Annual Report on Form 10-K for the year ended June 30, 2002, and its Quarterly Report on Form 10-Q for the three-month period ended December 31, 2002, which are filed with the U.S. Securities and Exchange Commission. Readers of this release are referred to those filings. BAM! Entertainment does not intend to update any of these forward-looking statements after the date of this release.

BAM! Entertainment, BAM! and BAM!4 are trademarks of BAM! Entertainment, Inc. PlayStation is a registered trademark of Sony Computer Entertainment Inc. Nintendo GameCube is a trademark of Nintendo of America, Inc. Nintendo and Game Boy Advance are trademarks of Nintendo. Xbox is a trademark of Microsoft Corporation. All other trademarks are the property of their respective owners.

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BAM! ENTERTAINMENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share amounts)
(Unaudited)

					Three months ended						Nine months ended
					March 31,						March 31,
					2003			2002			2003			2002
Net revenues					$	2,866		$	7,017		$	33,611		$	36,758
Costs and expenses:
	Cost of revenues
			Cost of goods sold			1,962			5,290			20,714			22,036
			Royalties, software costs, and license costs			1,871			2,758			15,497			7,433
			Project abandonment costs			1,032			275			5,343			275
			Total cost of revenues			4,865			8,323			41,554			29,744
	Research and development (exclusive of amortization of deferred stock compensation)					527			692			2,575			1,633
	Sales and marketing (exclusive of amortization of deferred stock compensation)					1,186			1,831			8,198			8,156
	General and administrative (exclusive of amortization of deferred stock compensation)					1,385			1,724			5,777			4,413
	Amortization of deferred stock compensation*					44			360			338			1,073
	Restructuring costs					8			—			1,761			—
				Total costs and expenses		8,015			12,930			60,203			45,019
Loss from operations						(5,149	)		(5,913	)		(26,592	)		(8,261	)
		Interest income				3			135			146			231
		Interest expense				(50	)		(440	)		(576	)		(2,459	)
		Other income (expense)				72			(15	)		48			(8	)
Net loss					$	(5,124	)	$	(6,233	)	$	(26,974	)	$	(10,497	)
Net loss per share:
	Basic and diluted				$	(0.35	)	$	(0.43	)	$	(1.84	)	$	(1.34	)
Shares used in computation:
	Basic and diluted					14,672			14,574			14,645			7,809
*Amortization of deferred stock compensation:
	Research and development				$	(51	)	$	55		$	(27	)	$	169
	Sales and marketing					(25	)		24			(9	)		73
	General and administrative					120			281			374			831
					$	44		$	360		$	338		$	1,073

BAM! ENTERTAINMENT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands)
(Unaudited)

			March 31,			June 30,
			2003			2002
ASSETS
Current assets:
	Cash and cash equivalents		$	1,782		$	4,726
	Short-term investments			—			8,185
	Accounts receivable, net of allowance of $3,024 as of March 31, 2003 and $3,720 as of June 30, 2002			2,590			10,183
	Inventories			2,334			3,945
	Prepaid royalties, capitalized software costs and licensed assets, net			8,791			12,858
	Prepaid expenses and other			1,806			2,539
		Total current assets		17,303			42,436
Prepaid royalties, capitalized software and licensed assets, net of current portion				1,179			5,467
Property and equipment, net				675			987
Long-term receivable, net of allowance of $1,627 as of March 31, 2003 and $1,080 as of June 30, 2002				—			547
Other assets				54			30
Total assets			$	19,211		$	49,467
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	Accounts payable — trade		$	2,941		$	4,755
	Short-term borrowings			—			1,359
	Royalties payable			1,146			528
	Accrued compensation and related benefits			851			972
	Accrued software costs			800			1,488
	Accrued expenses — other			1,021			1,509
		Total current liabilities		6,759			10,611
Stockholders’ equity:
	Common stock $0.001 par value; shares authorized; 100,000,000; shares issued and outstanding: 14,678,290 and 14,582,756 as of March 31, 2003 and June 30, 2002, respectively			15			15
	Additional paid-in capital			62,982			62,988
	Deferred stock compensation			(325	)		(789	)
	Accumulated deficit			(50,592	)		(23,618	)
	Accumulated other comprehensive income			372			260
		Total stockholders’ equity		12,452			38,856
Total liabilities and stockholders’ equity			$	19,211		$	49,467

BAM! ENTERTAINMENT, INC. AND SUBSIDIARIES
QUARTERLY FACT SHEET
(Dollars in thousands)
(Unaudited)

								Percentage
								of sales for
								the three
		Three months ended						months ended
		March 31,						March 31,
		2003			2002			2003
Geographic sales mix
	North America	$	2,618		$	4,657			91.3	%
	International		248			2,360			8.7
Total net revenues		$	2,866		$	7,017			100.0	%
Platform revenue mix
	PlayStation 2	$	768		$	2,512			26.8	%
	GameCube		35			576			1.2
	Xbox		(173	)		—			(6.0	)
	Gameboy Advance		1,066			2,538			37.2
	Gameboy Color		(80	)		315			(2.8	)
	N64		(6	)		(1	)		(0.2	)
	Personal Computer		153			(78	)		5.3
	PlayStation 1		1,103			1,155			38.5
Total net revenues		$	2,866		$	7,017			100.0	%