AGM Statement

Character Group PLC
18 January 2002


Issued by Citigate Dewe Rogerson Ltd, Birmingham

Date: Friday, 18 January 2002     IMMEDIATE RELEASE


                           The Character Group plc

                                AGM Statement

At today's Annual General Meeting (18 January 2002), Richard King, Chairman
told shareholders:

'In my Chairman's statement which accompanied the results for the year to 31st
Aug 2001, I detailed the progress that had been made and commented that the
Directors were cautiously optimistic that this progress would continue in
2002.

'I am pleased to report that Christmas trading was in general as per our
expectations and that we continue to be optimistic that we shall show
substantial improvements throughout the financial year to August 2002. The
reduction in overhead and the improvement in margins have had a significant
effect on the bottom line although, as expected, sales were lower than in the
previous year.

'In addition, we have recently been previewing our ranges to the trade for the
important 2002 Christmas period, and I am pleased to report that the reaction
to our new product ranges, both in the UK and internationally, has been robust
which gives us confidence that we are on the right track to maintain our
improvement.'


Enquiries:

Richard King, Chairman

Kiran Shah, Finance Director              Fiona Tooley, Director

The Character Group PLC                   Citigate Dewe Rogerson

Today:     020 7282 8000                  Today:     020 7282 8000

Thereafter: 020 8949 5898                 Thereafter: 0121 455 8370

Mobile: [phone] (RK)                 Mobile: [phone]

07956 278522 (KS)