Update

Character Group PLC 22 September 2005 Issued by Citigate Dewe Rogerson Ltd, Birmingham Date: Thursday, 22 September 2005 IMMEDIATE RELEASE The Character Group plc ('the Group') Update At the time of the Group's interim results statement issued in April, the Company highlighted its intention to seek an Admission to AIM as it provides in the Board's view, a more flexible environment in which to achieve the Group's objectives and reduce costs and formalities relating to listing and future transactions. At the same time, the Directors also confirmed that they recognised the need to strengthen the executive and operational management teams and position the Group for its next stage of development. The Group's focus continues to be the improvement in its operational efficiencies and further development of its product portfolio. Having taken into account the progress being made in the trading position of the Group and the need to manage each of the Group's businesses, the Board has decided that whilst the proposed changes to the Group structure are being completed, it would be in both the business and its shareholders interests that, with their strength and experience within the business and sectors in which the Group operates, Richard King and Kiran Shah are appointed interim joint managing directors to oversee the changes. Accordingly, Enrico Preziosi has stepped aside from his executive role as Chief Executive Officer and Managing Director with immediate effect. Giochi Preziosi S.p.a remains a 22.5% shareholder and the Board is not aware of any intention by Giochi Preziosi to reduce its shareholding in the Group. The process of transferring from the Official List to AIM has commenced and details will be included in a Circular to be posted to shareholders in due course. Subject to shareholder approval at an EGM, the move will be completed as soon as practicable. As part of the Group's on-going review, the Board, as it indicated in April, is also considering the possible de-merger of World Wide Licenses ('WWL') and simultaneously seeking an Admission to AIM for WWL's shares in their own right. Whilst there are no immediate plans to make this move, the Board believes that this could also better promote shareholder value. Shareholders will be kept informed of developments as appropriate. The Group expects to announce its Preliminary Results for the year ended 31 August 2005 in November. Enquiries: Richard King, Chairman Kiran Shah, Group Finance Director Fiona Tooley, Director 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 This information is provided by RNS The company news service from the London Stock Exchange EKBFBBZ