Additional Listing

Character Group PLC
12 November 2003

        The Character Group PLC ('Character Group' or 'the Company')

   Partial conversion of loan note by Valtidone SpA and Listing Application

Pursuant to the announcement made by the Company on 4 October 2001 regarding the
transfer of the £4,600,000 nominal convertible loan note ('the Loan Note') by
Toys Investment SA ('TISA') to Valtidone SpA ('Valtidone'), the Company
announces that it has issued and allotted 4,000,000 new ordinary shares of 5p
each ('New Ordinary Shares') to Valtidone as a result of a partial exercise by
Valtidone of its rights of conversion in respect of £1,600,000 nominal of the
Loan Note by Valtidone at the conversion price fixed under the terms of the Loan
Note of 40p per New Ordinary Share ('the Partial Conversion').

Prior to the Partial Conversion and the issue and allotment of the New Ordinary
Shares, Valtidone has repeated the confirmation that Valtidone is not a concert
party in relation to TISA (within the meaning of the City Code on Takeovers and
Mergers) or the holder of any other issued shares in the Company.

Following the Partial Conversion, Valtidone has an interest in £3,000,000
nominal of the Loan Note which, if fully converted, would result in the issue of
a further 7,500,000 new ordinary shares of 5p each in the Company.

As a consequence of the Partial Conversion, Valtidone has an interest in the New
Ordinary Shares, which represent approximately 8.8 per cent. of the Company's
issued ordinary share capital as enlarged by the issue of the New Ordinary
Shares.

Application has been made to the UK Listing Authority and to the London Stock
Exchange for the New Ordinary Shares to be admitted to the Official List and to
trading on the London Stock Exchange's market for listed securities ('Admission
'). It is expected that Admission will occur on 17 November 2003.

12 November 2003


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