Alliance Entertainment Holding Corporation ("Alliance Entertainment"), a distributor and wholesaler of the world's largest in stock selection of music, movies, video games, electronics, arcades, and collectibles, today announced the July 1, 2022, closing on the acquisition of Think 3Fold, a distributor of toys and collectibles.

The acquisition of Think 3Fold will bring significant additional licensed toy and collectible products and sales channels. Think 3Fold has strong established relationships with vendors including McFarlane, Bandai, Little Buddy, The Loyal Subjects, Mego Toys and Figures, WETA, Great Eastern and many others. Adding products from these vendors into the Alliance Entertainment distribution channel strategically will be a significant opportunity for the suppliers, retailers, and Alliance to increase revenues.

Think 3Fold currently has a Stranger Things endcap feature in Walmart with future monthly features planned alongside their dedicated shelf space. Think 3Fold's approach brings the best properties to stores from hot Anime titles like Demon Slayer, Naruto and Jujutsu Kaisen to entertainment brands like TMNT, DC, Spawn and even KISS as well as trending properties and unexpected retro brands.

Think 3Fold has established rack space in Walmart and will enhance the services Alliance is providing for Walmart. Alliance currently ships weekly orders of Vinyl, CD's, DVD's and Video Games to over 3,800 Walmart Stores, and the acquisition will add a shipment of Collectibles to the weekly orders. The Collectibles will also be managed with Alliance's Vendor Managed Inventory (VMI) proprietary software that includes all sales history and detailed traits of each Walmart store to maximize sales.

The leadership team of Think 3Fold will be joining Alliance and bringing their extensive experience in the curation and distribution of licensed toy and collectibles.

"This is a very valuable and strategic acquisition for Alliance as it elevates us to become the leading toy and collectible distributor in the Unites States" said Jeff Walker, CEO of Alliance Entertainment. "We are very excited to add the All Star Think 3Fold team to Alliance as they will have a major positive impact to our future growth."

Alison Biggers, Co-founder and Partner at Think 3Fold, added, "Integrating the curation approach we take to product at Think 3Fold with the strength and power of Alliance Entertainment's infrastructure creates massive opportunities to bring an even stronger collectible solution to retailers and consumers. In a short two and a half years, we are very proud of the business we started and are incredibly bullish on our future growth with the team at Alliance."

On June 23, 2022, Alliance Entertainment announced that it will become publicly listed through a merger transaction with Adara Acquisition Corp. (NYSE:ADRA, ADRA.U, ADRA.WS))) ("Adara"), a publicly traded special purpose acquisition company. The transaction is expected to close in the fourth quarter of 2022, at which point the combined company's common stock is expected to trade on the NYSE American under the ticker symbol "AENT".

About Think 3Fold

Think 3Fold is the brainchild of 3 executives who founded the company with the mission to find gaps in the toy and collectible marketplace and bring solutions to suppliers and retailers. With decades of experience in sales, marketing and merchandising, we look at every opportunity through a 3-fold lens to bring the most comprehensive approach to supplier and retail partners. We are guided by the consumer and look to help them create their next obsession, building fans and broadening the market for collectible toys. Business has doubled in volume each year since the company began distributing collectibles in summer 2020. Follow @collectionobsessionofficial for up to date product releases.

About Alliance Entertainment

Alliance Entertainment is a premier distributor of music, movies, and consumer electronics. We offer 485,000 unique in stock SKU's, including over 57,300 exclusive compact discs, vinyl LP records, DVDs, Blu-rays, and video games. Complementing our vast media catalog, we also stock a full array of related accessories, toys and collectibles. With more than thirty-five years of distribution experience, Alliance Entertainment serves customers of every size, providing a robust suite of services to resellers and retailers worldwide. Our efficient processing and essential seller tools noticeably reduce the costs associated with administrating multiple vendor relationships, while helping omni-channel retailers expand their product selection and fulfillment goals. For more information visit www.aent.com.

About Adara Acquisition Corp.

Adara raised $115 million in February 2021 and its securities are listed on the NYSE American under the ticker symbols "NYSE: ADRA, ADRA.U, ADRA.WS". Adara is a blank check company organized for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. Adara is led by its CEO, Thomas Finke (former Chairman and CEO of Barings LLC) and its director, W. Tom Donaldson (founder of Blystone & Donaldson). In addition to Messrs. Finke and Donaldson, Adara's Board of Directors also include Frank Quintero, Dylan Glenn and Beatriz Acevedo-Greiff.

To learn more, please visit: https://www.adaraspac.com

Forward Looking Statements

Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial and performance metrics, projections of market opportunity, expectations and timing related to Alliance Entertainment's business, customer growth and other business milestones, potential benefits of the proposed business combination (the "Proposed Transactions"), and expectations related to the timing of the Proposed Transactions.

These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Adara's and Alliance Entertainment's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by an investor as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Alliance Entertainment and Adara.

These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; the inability of the parties to successfully or timely consummate the Proposed Transactions, including the risk that any regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the Proposed Transactions or that the approval of the stockholders of Adara or Alliance Entertainment is not obtained; failure to realize the anticipated benefits of the Proposed Transactions; risks relating to the uncertainty of the projected financial information with respect to Alliance Entertainment; risks related to the music, video, gaming, and entertainment industry, including changes in entertainment delivery formats; global economic conditions; the effects of competition on Alliance Entertainment's future business; risks related to fulfilment network; risks related to expansion and the strain on Alliance Entertainment's management, operational, financial, and other resources; risks related to operating results and growth rate; the business could be harmed the amount of redemption requests made by Adara's public stockholders; and those factors discussed in Adara's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 under the heading "Risk Factors," and the Current Report on Form 8-K filed on June 23, 2022 and other documents of Adara filed, or to be filed, with the SEC.

No Offer or Solicitation

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Alliance Entertainment Acquires Think 3Fold to Expand Rapidly Growing Licensed Toy and Collectible Division