Kartoon Studios to Launch “Winnie-The-Pooh” Megabrand on Amazon Prime Video, Alongside Nationwide Retail Program in Partnership with Alliance Entertainment, Leading Distributor of Movies and Music to Major Retailers and Ecommerce

Provides $30 million in joint venture funding through non-dilutive production financing through a subsidiary Catalyst Venture Partners

The company’s largest project to date is based solely on the AA Milne classic, which generated $80 billion in retail sales

The “100 Acres of Christmas” animated holiday movie will premiere on Amazon Prime Video on Dec. 24, 2025, followed by five holiday specials and a 104-episode animated series celebrating the 100th anniversary.^Number Anniversary of the first publication of AA Milne’s London Evening Standard

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BEVERLY HILLS, Calif., June 21, 2024 (GLOBE NEWSWIRE) — Cartoon Studios (NYSE American: TOON) Today, the company announced its most ambitious project to date. “Winnie the Pooh” by Cartoon Studio. Plans include an animated holiday movie, five holiday specials and a four-year/104-episode series. Amazon Prime Videothrough the Kartoon Channel! subscription service on the platform. Alliance Entertainment (NASDAQ:AENT)The leading distributor of physical entertainment supporting major retailers nationwide, including Walmart, Target, Amazon and Barnes & Noble, will launch new products through its national retail program., This coincides with the rollout of a global consumer products campaign by Kartoon Studios.

Cartoon Studio’s “Winnie the Pooh” is based on the designs and stories of A.A. Milne’s “Winnie the Pooh,” one of the most successful brands of all time. The merchandise has generated more than $80 billion in sales over the past 40 years and is currently estimated to generate $3 billion to $6 billion in annual revenue for The Walt Disney Company. Its total lifetime revenues exceed those of nearly every major brand in the world, including “Barbie,” “Harry Potter,” “Star Wars,” “Mickey Mouse,” “Peanuts,” “Ninja Turtles,” “Power Rangers” and “Marvel.”

“With Winnie the Pooh, Disney created an iconic, hugely successful global brand that we have all admired so much for decades. When the work entered the public domain, we knew we couldn’t create Pooh for a new generation unless we could bring an entirely new, different and unique look that was contemporary, protectable and gave voice to the characters and stories created by AA Milne in a way that had never been done before,” he said. Andy Hayward, chairman and CEO of Kartoon Studios; “We are thrilled to partner with Amazon Prime Video and Alliance Entertainment to bring this new version of our entertainment brand and Winnie-the-Pooh branded consumer products to global markets and deliver unique and premium content.”

Pre-production on the holiday animated film has already begun and is scheduled to premiere on Amazon Prime Video on December 24, 2025 through Kartoon Channel!’s $3.99 per month subscription distribution agreement with Amazon. Simultaneously, a global retail program will be launched with the debut of merchandise featuring a variety of special offers distributed through Alliance Entertainment Corporation.

Cartoon Studio’s “Winnie the Pooh” The animated content is developed using original contemporary stories inspired by Milne’s beloved classics, as well as unique “yarn-based” designs and palettes for characters and environments. Beautifully imagined yarns give characters depth and warmth. Additionally, the stories are told in “Seuss-esque” verse, bringing a rich dimension to the stories.

“In designing Cartoon Studio’s Winnie the Pooh, we combined the best of AI and human creativity to deliver a unique look for characters and environments that was unimaginable before AI entered the industry,” he said. Hayward“Our AI platform can bring levels of efficiency, speed to market and creativity to production that have never been possible before.” Hayward“At a time when the world can be confusing for children, Winnie the Pooh is an oasis of goodness rooted in family, friendship, kindness and love – these are exactly the values our version of Winnie the Pooh illustrates as we focus on nurturing young minds. Cartoon Studio’s “Winnie the Pooh” “The simple, comfortable values that AA Milne envisioned will continue to grow into a long-lasting, global mega-brand.”

Hayward added, “We see this as a generational opportunity to leverage a proven series that is one of the greatest ever made. Audiences around the world are looking for wholesome, positive, family-friendly stories that inspire and entertain kids, as well as new product lines imbued with these rich values - from toys to books, videos to apparel and more.”

The series is being funded through $30 million of joint venture production financing provided by WTP SPV 1, a subsidiary of Catalyst Venture Partners, which is a non-dilutive production financing.

Steven A. Horowitz, Senior Managing Director of WTP SPV and its parent company, Catalyst Venture Partnerssaid, “We have committed $30 million to the special purpose joint venture for this exciting new version of A.A. Milne’s Winnie the Pooh by Cartoon Studios, which is non-dilutive to any of TOON’s existing shareholders. Being able to participate in such a timeless and proven children’s classic as Milne’s Winnie the Pooh through the production of original animated content and the licensing of consumer products from our unique character designs and stories is an incredibly exciting and unique opportunity for us. Andy Hayward and the team at Cartoon Studios have a long history of creating hits for children. With an all-star, award-winning talent in development, production, marketing, consumer products and distribution being brought together to manage the launch of the brand, we are pleased to be part of what we believe will be a highly profitable and enduring business.”

“Leveraging AA Milne’s Winnie the Pooh’s vast assets, unique design and storytelling, and AI-powered production efficiencies, Cartoon Studios’ new iteration of the enduring brand will have an extraordinary set of attributes that we believe will deliver exceptional profitability for the company,” Hayward said.

About Kartoon Studios

Kartoon Studios (NYSE AMERICAN: TOON) is a leading global end-to-end creator, producer, distributor, marketer and licensor of entertainment brands. The company’s IP portfolio includes original animated content such as the Stan Lee brand, “Stan Lee’s Superhero Kindergarten” starring Arnold Schwarzenegger on Kartoon Channel! and Ameba, “Shaq’s Garage” starring Shaquille O’Neal on Kartoon Channel! and Ameba, “Rainbow Rangers” on Kartoon Channel! and Ameba, and the Netflix original “Llama Llama” starring Jennifer Garner. In 2022, Kartoon Studios acquired Canada’s WOW! Unlimited Media and a significant financial interest in its subsidiary, Mainframe Studios. Mainframe Studios is one of the world’s most successful animation service houses and produces three major brands:^rd The company also made a strategic investment to become the largest shareholder in Germany’s Your Family Entertainment AG (FRA:RTV), a leading European distributor and broadcaster of high-quality programming for children. The company’s wholly owned digital distribution network, Toon Media Networks, consists of Kartoon Channel!, Frederator Network and Ameba. Kartoon Channel! is a globally distributed entertainment platform with near-complete penetration in the U.S. market. Kartoon Channel! and Ameba are available on multiple platforms, including iOS, Android mobile, web, Amazon Prime Video, Apple TV, Amazon Fire, Roku, Pluto TV, Comcast, Cox, Dish, Sling TV, Android TV, Tubi, Xumo, Samsung and LG Smart TVs. Frederator Network owns and operates one of the world’s largest animation networks on YouTube, with channels featuring over 2,000 exclusive creators and influencers garnering billions of views annually.

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Forward-Looking Statements: Certain statements in this press release are “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “project,” “project,” “plan,” “intend” or similar expressions, or statements of intent, belief or current expectation, are forward-looking statements. Although the Company believes that these forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements which are based on information available to the Company on the date of this release. These forward-looking statements are based on current estimates and assumptions and are subject to various risks and uncertainties, including the Company’s ability to generate revenues or achieve profitability, the Company’s ability to raise additional capital on acceptable terms and the possibility of a significant issuance of shares that would result in dilution to its stockholders. fluctuations in the performance of our business from period to period, general economic and financial conditions, our ability to forecast changes in popular culture, media, films, fashion and technology, competitive pressures from other content distributors and the retail market, our dependence on and relationships with third party production and animation studios, our ability to market and advertise our products, our reliance on third parties in promoting our products, our ability to keep up with technological advances, our ability to protect our intellectual property, and other risk factors described in the “Risk Factors” section of our most recent Annual Report on Form 10-K and in our subsequent filings with the Securities and Exchange Commission (“SEC”). Actual results may therefore differ materially. We expressly disclaim any obligation to update or revise any statements, whether as a result of new information, future events or otherwise, except as required by law.

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