<div id="readability-page-1"><article>New Live-Action Banner to Produce Family and Youth Entertainment; First Project, “Real Santa”<img height="600" src="https://imageproxy.pbkrs.com/https://ml.globenewswire.com/Resource/Download/029246a0-0983-4a25-8c0d-b97f4bcf48d9/picture1.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="396" original-src="https://imageproxy.pbkrs.com/https://ml.globenewswire.com/Resource/Download/029246a0-0983-4a25-8c0d-b97f4bcf48d9/picture1.jpg"/> BEVERLY HILLS, Calif., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American: TOON), a global producer and distributor of children’s and family entertainment, and AETH Entertainment, a full service entertainment studio, today jointly announced they have teamed up to launch TaleSphere Studios, a joint venture that will produce live-action youth and family focused entertainment. “This marks an exciting venture into live action films in keeping with our commitment to positive youth targeted content,” said Andy Heyward, founder and CEO of Kartoon Studios. “We couldn’t have found a better partner in AETH Entertainment. They are a leader in profitably producing great entertainment.” “Kartoon Studios and AETH Entertainment are perfectly aligned in vision and passion, and together our complementary strengths will bring bold, inspiring live-action features to today’s youth and families,” said Carla Woods, co-founder and president of AETH Entertainment. TaleSphere Studios is already in development on its first feature: Real Santa, which is based on William Hazelgrove’s bestselling novel of the same name. The film follows a devoted father who goes to extraordinary lengths to keep his daughter’s belief in Santa alive, capturing the heart and humor of the season. The film is being executive produced by Hazelgrove and Allan Grafman, President and CEO of All Media Ventures. AETH is a full-service production studio specializing in cost-effective quality content. AETH’s founders have produced over 150 films to date, including Christmas with the Campbells, Crushed, Magic Carpet Rides, and Looking Through Water. AETH is represented by Gersh Agency. Andy Heyward founded DIC Entertainment, the animation studio behind hits like Inspector Gadget, Strawberry Shortcake, Real Ghostbusters, Captain Planet and Sonic the Hedgehog; Heyward went on to establish Kartoon Studios as a major force in children’s entertainment. Now, through TaleSphere Studios, the joint venture with AETH, he is expanding Kartoon Studios’ portfolio into live action. The family and children film genre has rapidly emerged as one of the most promising categories in entertainment. In 2024, nearly one in three U.S. films that earned more than $100 million at the box office came from this genre, an increase from 20 percent in 2022, according to a recent study from Celluloid Junkie. About Kartoon Studios Kartoon Studios (NYSE AMERICAN: TOON) is a global leader in children’s and family entertainment, delivering premium content and high-value intellectual property to millions of viewers worldwide. The Company’s portfolio features globally recognized brands including Stan Lee’s Superhero Kindergarten, Shaq’s Garage, Rainbow Rangers, and Llama Llama. Kartoon Studios holds a controlling interest in Stan Lee Universe and operates Mainframe Studios, one of North America’s largest animation producers, with more than 22,000 minutes of award-winning programming delivered. Through its Toon Media Networks division including Kartoon Channel!, Ameba, Kartoon Channel Worldwide and Frederator, Kartoon Studios reaches audiences across linear television, AVOD, SVOD, FAST channels, and top streaming platforms. Kartoon Channel! is consistently rated the #1 kids’ streaming app on the Apple App Store. With a global distribution footprint in over 60 territories, and a robust content pipeline, Kartoon Studios is positioned for sustained growth and long-term shareholder value. For more information, visit www.kartoonstudios.com About AETH Entertainment AETH Entertainment is a full-service entertainment studio that specializes in creating exceptional content efficiently and cost-effectively. AETH’s founders have produced over 150 films and series for networks, streamers and theatrical release to date. Committed to excellence, AETH crafts stories to captivate and entertain while fueling a sustainable entertainment industry. For more information, please visit www.AETHEntertainment.com. MEDIA CONTACT: pr@kartoonstudios.com INVESTOR RELATIONS CONTACT: ir@kartoonstudios.com A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/029246a0-0983-4a25-8c0d-b97f4bcf48d9 <img src="https://imageproxy.pbkrs.com/https://www.globenewswire.com/newsroom/ti/query-bmY9T1RZd01EazJPU00zTXpFNE1qZzRJekl3T0RreE56az0?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1" height="1" original-src="https://imageproxy.pbkrs.com/https://www.globenewswire.com/newsroom/ti/query-bmY9T1RZd01EazJPU00zTXpFNE1qZzRJekl3T0RreE56az0"/> <img src="https://imageproxy.pbkrs.com/https://ml.globenewswire.com/media/ZmYxYjUxNDMtZDcyOS00MjgzLWJhNDktZWE3YWI4N2U5OTllLTExMDA3NTAtMjAyNS0xMi0xMS1lbg==/tiny/Kartoon-Studios.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1" height="1" original-src="https://imageproxy.pbkrs.com/https://ml.globenewswire.com/media/ZmYxYjUxNDMtZDcyOS00MjgzLWJhNDktZWE3YWI4N2U5OTllLTExMDA3NTAtMjAyNS0xMi0xMS1lbg==/tiny/Kartoon-Studios.png"/></article></div>

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Kartoon Studios and AETH Entertainment have partnered to launch TaleSphere Studios, focusing on live-action youth and family entertainment. Their first project, "Real Santa," is based on William Hazelgrove's novel. This venture marks Kartoon Studios' expansion into live-action films, leveraging AETH's expertise in cost-effective production. The family film genre is increasingly popular, with significant box office success. Kartoon Studios is a leader in children's entertainment, while AETH has produced over 150 films. This collaboration aims to deliver inspiring content to families and youth.

AETH Entertainment and Kartoon Studios Partner to Launch TaleSphere Studios | TOON Stock News