Bindeez Products

Character Group PLC 07 November 2007 Issued on behalf of The Character Group plc Date: Wednesday, 7 November 2007 The Character Group plc Statement in relation to Bindeez products The Directors of the Character Group plc ('Character Group' or 'Group') have noted the recent press and media comments regarding Bindeez products. Through its subsidiary Character Options, the Group acts as the distributor of this range in the UK on behalf of Moose Enterprise Pty Ltd, an Australian designer and developer of toys in general and, in particular, Bindeez branded products. The Group is not a distributor of these products anywhere other than in the UK and Eire. Character Group believes that its stock of Bindeez products conforms to UK safety regulations. However, the Group has, as a precautionary safety measure, instructed an independent test laboratory and a EU toxicologist to immediately test and analyse the chemical composition of representative samples of the Group's Bindeez stocks in order to fully satisfy as to their safety. The Group has also taken the decision to be prudent and recommend to all its customers that all Bindeez products supplied by the Group should be removed from sale whilst these tests are undertaken. Should we receive adverse test results, we shall immediately take such steps as are necessary to address the position. Character Group expects to issue an update statement as soon as the testing is completed. The Group takes all reasonable measures to ensure that all its products are safe and that children's safety is the priority. To that end, Character has continually, over a number of years, initiated and further developed a stringent quality control regime, which is regularly reviewed and updated. The financial impact of the above is expected to have a negligible impact on the Group's results for the current financial year ending 31 August 2008. Enquiries: Richard King, Chairman Fiona Tooley, Director Kiran Shah, Group Finance Director & Joint MD Keith Gabriel, Senior Account Manager The Character Group plc Citigate Dewe Rogerson Tel: +44 (0) 20 8949 5898 Tel: +44 (0) 121 455 8370 Mobile: +44 (0) 7836 250150 (RK) Mobile: +44 (0) 7785 703523 (FMT) Mobile: +44 (0) 7956 278522 (KS) www.thecharacter.com www.character-online.co.uk Richard Thompson Philip Davies Charles Stanley Securities Nominated Advisor Tel: +44 (0) 20 7149 6000 This information is provided by RNS The company news service from the London Stock Exchange