Share buy-back and Update

Character Group PLC 25 May 2004 Issued by Citigate Dewe Rogerson, Birmingham on behalf of The Character Group plc Date: Tuesday 25th May 2004 Immediate Release The Character Group plc ('the Company' or 'Group') Share buy-back and Update Notification is given that, pursuant to the authority granted at the Annual General Meeting of the Company held on 21 January 2004 to make market purchases of the Company's own shares, the Company has today purchased for cancellation 25,000 ordinary shares of 5 pence each in the capital of the Company ('Ordinary Shares') at a price of 81 pence per share. Following this purchase and cancellation there will be 52,671,509 Ordinary Shares in issue. This purchase for cancellation by the Company, together with the purchases of 100,000 Ordinary Shares made at 100 pence per share announced on 29 and 30 April, brings the total number of Ordinary Shares purchased by the Company for cancellation since the announcement of the Group's Interim Results on 29 April 2004 to 125,000 Ordinary Shares. As the Company indicated in its interim statement last month, it is looking to achieve a solid performance from its digital products business during the second half. The Company also remains optimistic that its new broad range of product listings will provide a solid base to improve both sales and profitability within its Toys Games and Giftware Division. One of the new listings, which has already received a very encouraging reaction from retailers is Robosapien, a unique personality featured robot which is being launched by the Group with its inventor, Mark Tilden, on Friday 28th May at The Gadget Shop, Covent Garden, London and on Saturday 29th May at Hamleys, Regent Street before its regional launch in Glasgow and Manchester on 30th and 31st May. The Directors remain confident for the full financial year to August 2004 and do not expect profits to be less than the previous financial year ended August 2003. Enquiries: Kiran Shah, Group Finance Director Fiona Tooley, Director The Character Group plc Citigate Dewe Rogerson Tel: 020 8949 5898 Tel: 0121 455 8370 Mobile: 07956 278522 Mobile: 07785 703523 www.charactergroup.plc.uk --------------------------- This information is provided by RNS The company news service from the London Stock Exchange END STRILFFFERIEFIS