Talenthouse AG: Talenthouse completes Coolabi transaction

Baar (pta028/07.07.2022/18:00 UTC+2)

Talenthouse AG ("Talenthouse" or the "Company"), the leading technology platform connecting creatives and brands globally, today announces that it has completed the acquisition of Coolabi Group Limited ("Coolabi").

Having acquired an initial 33% shareholding in Coolabi in 2021, Talenthouse has acquired the remaining 67% and now owns 100% of the share capital of Coolabi. The acquisition was based on an enterprise value of c.£44 million. The completion was made possible by the use of new debt facilities to refinance the existing vendor loans.

Coolabi has four main business segments;1) story creation, 2) TV development, production and distribution, 3) consumer products, and 4) digital apps, games and communities. It operates both B2B and B2C models and has approximately 50 employees.

As a leading international media group and rights owner specialising in the creation, development, and brand management of children's and family intellectual property rights, Coolabi's portfolio includes Warrior Cats (Warriors), Beast Quest, and Clangers. It has created and licensed c. 200 book series and c. 2,000 titles to publishers, while Coolabi's properties have been downloaded as apps approximately 20 million times and are licensed in some 40 languages (books)and in over 140 countries (apps and TV shows).

Coolabi has been active in digital games for several years, on multiple platforms including Roblox, which now hosts Warrior Cats Ultimate Edition, a 3D role-play game and an official digital destination for Warriors' ever-growing global fan community.

Warriors Cats Ultimate Edition has been played nearly 200 million times since its launch in May 2021.

Further, Coolabi's properties are successful globally and it has been both strategic and opportunistic while entering new markets frequently. For example, in 2019 Coolabi partnered with Chinese animation leader and theme park operator Fantawild, to bring the popular preschool TV brand, Clangers, to the Chinese market. Clangers has been viewed on many of China's major TV channels, showcasing one of Coolabi's many success stories worldwide.

Coolabi has been consistently EBITDA positive for several years and is expected to remain so for 2022, and its business model allows it to create content at minimal investment cost.

Talenthouse's new institutional financing partner, Kartesia, supported the Company with its acquisition of the remaining shareholding in Coolabi and further capital earmarked for future growth, with a total financing package of £41 million.

Clare McKeeve, CEO of Talenthouse AG, comments: "Talenthouse is excited to have completed the acquisition of Coolabi. The deal is instrumental in the next stage of the Company's growth across a wider demographic and will open up new opportunities for our Creative community to produce entertainment content. The terms are consistent with our previous guidance and with the Company's goal of developing a portfolio of properties which can thrive within the Creative ecosystem.

We look forward to welcoming Jeremy Banks and the Coolabi team and integrating its state-of-the-art content generation capabilities into Talenthouse's technology stack. We strongly believe that the acquisition will result in new routes to market and maximise our potential within existing international markets."

Jeremy Banks, CEO of Coolabi, comments: "We are pleased to be joining Clare McKeeve and the highly-regarded Talenthouse team through this acquisition. Their extensive, diverse and engaged creative community strongly ties into what we do here at Coolabi and our ambitions for the future. The merging of both groups will allow us to offer more of what we do best; create stories, brands and content that excite and entertain children across the globe."

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About Talenthouse AG

Talenthouse AG is a technology platform company, working with the world's largest

creative community of over 18 million members, to produce the highest quality digital content for many of the largest companies globally, including Netflix and Snap. Talenthouse AG, which unites the creative platforms of Talenthouse, EyeEm, Ello, Zooppa and Jovoto, is leading a

structural shift in the way that creative content is produced, employing a platform business model to source content at the scale and quality required to keep pace with consumer demand in the digital age. In doing so, it is also opening up opportunities for a much larger pool of creative talent. The company is registered in Switzerland and operationally headquartered in London with offices in LA, NYC, Berlin, Venice and Philadelphia. For more information visit: www.business.talenthouse.com

Stock exchange listing: SIX Swiss Exchange (www.six-swiss-exchange.com) Ticker symbol: THAG (CH)

Security number: 1 081 986

ISIN: CH0010819867

Contact: Talenthouse AG, Zugerstrasse 8a, CH-6340 Baar, Switzerland

About CoolabiGroup Limited

Coolabi Group is a leading independent, international media group and rights owner specialising in the creation, development, and brand management of children's and family intellectual property rights. Its portfolio includes Warriors, Beast Quest, and Clangers. Coolabi has created and licensed c. 200 book series and c. 2,000 titles to publishers. In total, lifetime global sales exceed 200 million copies. From a growing digital slate, Coolabi's properties have been downloaded as apps approximately 20 million times and have generated over 40 million YouTube views per month in the last 12 months. Globally, Coolabi properties are licensed in 40 languages (books) and in over 140 countries (apps and TV shows).

Talenthouse contacts:

Investor Relations:

Scott Lanphere- invest@talenthouse.com

Media Relations:

Brigitte Kaps - Brigitte@talenthouse.comPhone +41 43 344 38 38 or Mob +41 79 289 2042

Disclaimer

This media release serves informational purposes and constitutes neither an offer to sell nor a solicitation or an advertisement to buy any shares of Talenthouse AG in any jurisdiction. This media release does not constitute a prospectus within the meaning of Article 35 et seq. of the Swiss Federal Act on Financial Services. In addition, investors should seek advice from their bank or their financial adviser.

This media release contains forward-looking statements such as projections, forecasts, and estimates. Such forward-looking statements are subject to certain risks and uncertainties which may cause actual results, performance, or events to differ materially from those anticipated in this media release. Readers should therefore not rely on these forward-looking statements. The forward-looking statements contained in this media release are based on the views and assumptions of Talenthouse AG as of this date and Talenthouse AG does not assume any obligation to update or revise this media release.

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