Change in Share Ownership

Character Group PLC 22 July 2002 Issued by Citigate Dewe Rogerson, Birmingham Date: Monday, 22 July 2002 Embargoed 11.30am The Character Group plc Change in Share Ownership The Directors of The Character Group plc ('Character' or 'the Company') announce that Giochi Preziosi S.p.A. ('Giochi Preziosi'), one of Italy's leading designers, distributors and retailers of toys and related products with an annual turnover of approximately £295 million, purchased 11,885,898 ordinary shares in the Company ('Ordinary Shares') on 19 July 2002. These Ordinary Shares, which represent approximately 28.8% of the Company's issued ordinary share capital, were formerly held by Toys Investment S.A. ('TISA') and were purchased at a price of approximately 44.12 pence per share (Euro 0.686 cents per share), the total consideration being approximately £5,242,921 (Euro 8,151,169). The purchase price represents a premium of approximately 80% to the closing middle market price of an Ordinary Share as at 19 July 2002 of 24.5 pence. Giochi Preziosi was founded in 1984 by Enrico Preziosi (President). Enrico Preziosi and Claudio Luti (a Vice President of Giochi Preziosi) together hold 99.5% of the issued share capital of Giochi Preziosi. In August 2000, TISA, the private investment vehicle of Enrico Preziosi and Claudio Luti acquired a total of 3,467,949 Ordinary Shares. At the same time, Enrico Preziosi joined the Board of Character as a Non-Executive Director. In May 2001, he was appointed Chief Executive Officer and Managing Director of the Company. In August 2001, TISA increased its shareholding in Character to 11,885,898 Ordinary Shares representing approximately 28.8% of the Company's issued ordinary share capital. This position remained unchanged until the close of business on 18 July 2002. Commenting on the change in arrangements by Messrs Preziosi and Luti for the holding of their underlying major share ownership within the Company, Richard King, Chairman said: 'The transfer of share registration from TISA to Giochi Preziosi in no way affects the close trading relationship between the parties as the ultimate beneficial ownership of the shares remains unchanged.' 'Over the last five years the trading link has strengthened both businesses in their respective countries. We are confident that this partnership will continue to enhance both businesses in the future.' Exchange rate : £1=Euros 1.5547 Enquiries: Richard King, Chairman Fiona Tooley, Director Kiran Shah, Finance Director Keith Gabriel, Account Executive The Character Group plc Citigate Dewe Rogerson Tel: 020 8949 5898 Tel: 0121 455 8370 This information is provided by RNS The company news service from the London Stock Exchange