Completes Initial Sale of 17% of its China Business JV to UTG

Playboy Makes Initial $15 Million Debt Pay Down with Transaction Proceeds

Transaction Advances Asset-Light Strategy and Accelerates Debt Reduction

LOS ANGELES, March 23, 2026 (GLOBE NEWSWIRE) -- Playboy, Inc. (NASDAQ:PLBY) (the "Company" or "Playboy"), a global pleasure and leisure company, today announced the initial closing of its previously announced transaction to ultimately sell 50% of its China business to UTG Brands Management Group ("UTG"), an experienced consumer brands operator in China. UTG will now manage all operational aspects of Playboy's business activities in China, Hong Kong and Macau.

At the initial closing, which occurred on March 20, 2026, UTG acquired a 16.67% equity interest in a joint venture entity that manages and licenses Playboy's intellectual property in China, Hong Kong and Macau (the "JV") in exchange for $15 million, all of which Playboy used to pay down its senior secured debt. The Company will use nearly $37 million of the forthcoming transaction proceeds for further debt reduction. Including anticipated reductions in interest expense, the Company expects the transaction to be immediately accretive to earnings.

At the initial closing, Playboy also received a $4 million brand support payment, and Playboy began receiving guaranteed minimum JV distributions. Playboy expects to receive the remaining $30 million of purchase price proceeds for UTG's acquisition of an additional 33.33% equity interest in the JV and a further $6 million of brand support payments by January 2028. A further minimum of $62 million in total JV distributions will be paid to Playboy through 2033. In addition to the annual guaranteed minimum distribution payments to Playboy, which will equal or exceed its current net cash flows from China, Playboy expects to receive incremental annual distributions from the JV as a result of Playboy's continued ownership interest in the JV as UTG grows the business.