Bindeez Products

Character Group PLC
07 November 2007


Issued on behalf of The Character Group plc
Date: Wednesday, 7 November 2007


                            The Character Group plc
                   Statement in relation to Bindeez products


The Directors of the Character Group plc ('Character Group' or 'Group') have
noted the recent press and media comments regarding Bindeez products.

Through its subsidiary Character Options, the Group acts as the distributor of
this range in the UK on behalf of Moose Enterprise Pty Ltd, an Australian
designer and developer of toys in general and, in particular, Bindeez branded
products. The Group is not a distributor of these products anywhere other than
in the UK and Eire.

Character Group believes that its stock of Bindeez products conforms to UK
safety regulations. However, the Group has, as a precautionary safety measure,
instructed an independent test laboratory and a EU toxicologist to immediately
test and analyse the chemical composition of representative samples of the
Group's Bindeez stocks in order to fully satisfy as to their safety. The Group
has also taken the decision to be prudent and recommend to all its customers
that all Bindeez products supplied by the Group should be removed from sale
whilst these tests are undertaken. Should we receive adverse test results, we
shall immediately take such steps as are necessary to address the position.

Character Group expects to issue an update statement as soon as the testing is
completed.

The Group takes all reasonable measures to ensure that all its products are safe
and that children's safety is the priority. To that end, Character has
continually, over a number of years, initiated and further developed a stringent
quality control regime, which is regularly reviewed and updated.

The financial impact of the above is expected to have a negligible impact on the
Group's results for the current financial year ending 31 August 2008.

Enquiries:
Richard King, Chairman                             Fiona Tooley, Director
Kiran Shah, Group Finance Director & Joint MD      Keith Gabriel, Senior Account Manager
The Character Group plc                            Citigate Dewe Rogerson
Tel:       [phone]                    Tel:     [phone]
Mobile:    [phone] (RK)                Mobile:  [phone] (FMT)
Mobile:    [phone] (KS)
www.thecharacter.com
www.character-online.co.uk

Richard Thompson
Philip Davies
Charles Stanley Securities
Nominated Advisor
Tel:  [phone]




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