Sale of Treasury Shares

Character Group PLC 31 January 2007 Issued by Charles Stanley Securities Date: Wednesday, 31 January 2007 The Character Group plc ('Character Group' or the 'Company') Sale of Treasury Shares The Board announces that the Company has today sold 775,000 of the ordinary shares of 5 pence each in the capital of the Company held in treasury, in response to new institutional investor interest, at a price of 123.5 pence per share. Following the sale of these shares, the Company holds 979,322 ordinary shares in Treasury, which do not carry any voting rights. Therefore, the total number of ordinary shares carrying voting rights in Character Group is now 45,493,837. The above figure of 45,493,837 may be used by shareholders as the denominator for the calculations by which they can determine if they are required to notify their interest in, or a change to their interest in the company, under the Disclosure and Transparency Rules. Richard King, Chairman, Character Group, commented: 'I welcome institutional interest in the Company's shares which should lead to more stability in the Company's share price as well as reflecting support for the Group's initiatives. It should also be noted that the average price at which we bought ordinary shares into treasury was approximately 64.8 pence per share. It remains part of the Board's strategy to seek to enhance shareholder value through a buy-back programme of the Company's shares. The Board will continue to monitor the position and, if considered appropriate, make further market purchases.' Enquiries: The Character Group Plc Charles Stanley Securities Citigate Dewe Rogerson Ltd Richard King / Kiran Shah Rick Thompson / Philip Davies Fiona Tooley Tel: 020 8949 5898 Tel: 020 7149 6000 Tel: 0121 455 8370 This information is provided by RNS The company news service from the London Stock Exchange