3i acquire 24%

Character Group PLC
18 July 2006







Issued by Citigate Dewe Rogerson, Birmingham
Date: Tuesday, 18 July 2006

                                                               IMMEDIATE RELEASE
                            The Character Group plc
                         ('the Company' or 'the Group')
        Designers, developers and distributors of toys, games and gifts

                                 3i acquire 24%

The Board of the Character Group announces that the Company has today received
notice that 3i plc ('3i') has acquired 11,525,898 ordinary shares, representing
approximately 24.1% of the current issued share capital in the Company
(excluding the 1,000,000 ordinary shares in the Company held in treasury).

As a result of this significant, positive change in shareholding, it is the
Directors intention to invite a senior executive of 3i to join the Board as a
non-executive director. Further details will be released as appropriate.

The shareholding was acquired by 3i from Giochi Preziosi S.p.A. Consequently,
following the disposal, Giochi Preziosi no longer has an interest in shares in
the Company.

Richard King, Executive Chairman, the Character Group said:

'The Directors welcome 3i as investors in the Group. Clearly, their decision to
acquire a stake in our business underpins their confidence in our business model
going forward.'

'We also wish to thank Giochi Preziosi, and Enrico Preziosi in particular, for
their support over the years and wish the team and the business well for the
future and we look forward to continuing to develop our trading relationship'

'As a Group, trading has continued to be strong as we build up towards the end
of our financial year in August as well as for the autumn selling season, which
includes Christmas and is very important for the next financial year.'

'We will remain focused on improving our operational efficiencies but, more
importantly, on our strategy, which is to exploit our in-house capabilities in
developing both our own and licensed properties thereby further improving our
product portfolio which ultimately will, we believe, be reflected in increased
earnings and shareholder value.'

Alan Mackay, 3i Director commented:

'This is a powerful combination of an ambitious management team, experienced
Board and a solid strategy for success. 3i looks forward to a close relationship
as an actively engaged shareholder, helping the Company achieve its vision and
reaching the full potential of the business'.





continued...

                                      -2-

The Group has, over the last few weeks, also purchased in the market through
Charles Stanley Securities 5,065,000  ordinary shares in the Company,
representing approximately 10.6% of the current issued share capital of the
Company  (excluding the 1,000,000 ordinary shares in the Company held in
treasury). Following these transactions, the Company  has 47,824,909 ordinary
shares in issue (excluding the said shares held in treasury).

As part of the Group's stated objective to enhance shareholder value through the
repurchase of its own shares, the  Directors will continue to monitor the
position and will, if appropriate, make further purchases of the Company's own 
shares.






Enquiries:

The Character Group plc              Charles Stanley Securities       Citigate Dewe Rogerson Ltd
Richard King, Executive Chairman     Rick Thompson / Philip Davies    Fiona Tooley
Kiran Shah, Group Finance Director
Tel: [phone]            Tel: [phone]        Tel: [phone]
Mobile: [phone] (RK)                                      Mobile:[phone]
        [phone] (KS)

3i
Helen Adams 3i
Tel: [phone]


Notes to Editors:


About The Character Group plc
The Character Group plc designs, develops and distributes toys, games and
giftware, principally to the UK although it has an ever increasing exposure to
international markets.

Revenues are generated from a mix of product with over 50% designed and
developed in-house either under the Group's own brand or under licence with the
balance being derived from third party distribution. Notable product lines are
Dr Who, Scooby Doo, Biker Mice from Mars, Peppa Pig, GR8 Gear, Robosapien,
Roboraptor and Robopet. For a more comprehensive view of the product portfolio,
please refer to www.characteronline.com.

During the first six months of the current financial year (ending 31 August
2006), The Character Group underwent a major reorganisation with the disposal of
its Digital Business in February 2006. The structure is now designed to maximise
the strength of, and focus on, the core business of Toys, Games and Gifts.

www.thecharacter.com
CCT.L
Sector: Media, AIM


About 3i
3i is a world leader in private equity and venture capital. 3i focuses on
buyouts, growth capital and venture capital and invest across Europe, in the
United States and Asia. 3i's competitive advantage comes from its international
network and the strength and breadth of its relationships in business. These
underpin the value that 3i deliver to its portfolio and to its shareholders.



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