Board Changes

Character Group PLC
29 November 2002


                            The Character Group plc
                                 Board Changes


The Character Group plc ('The Company or the Group') is pleased to announce the
appointment to the Board, with immediate effect of Aldo Horvat (otherwise known
as 'Gianfranco' Horvat), as a Non Executive Director.

Mr Horvat, aged 60, whose career in the toy industry commenced in 1963, brings
to the Group a wealth of relevant experience. Since 1999, Aldo has been a
Consultant to the Company's largest shareholder Giochi Preziosi SpA ('Giochi
Preziosi').

Mr Horvat will replace Maurizio Cellai who has decided to stand down from the
Board of The Character Group as a Non-Executive Director, also with immediate
effect, in order to allow him to concentrate on his role as Managing Director of
Giochi Preziosi.

Further details as required by The Listing Rules of the UK Listing Authority
regarding Mr Horvat are contained in the Appendix overleaf.

Commenting on the Board Changes, Richard King ,Chairman of The Character Group
plc, said:

'I would like to thank Maurizio for his valuable help in seeing the Group
through its period of refinancing where he made a significant contribution. I am
also looking forward to working with Aldo as his business and industry
experience will be of great benefit to the further development of the Group.'


29 November 2002



Appendix

The details required by paragraph 16.4 of the Listing Rules in relation to the
appointment of Mr Horvat as Non-Executive Director of the Company are set out
below:

Current directorships of Aldo Horvat

HG Sviluppo SRL


Former directorships held by Aldo Horvat within the last 5 years

Linea Gig SpA (resigned 8 January 1999)

Gig Distribuzione SpA (resigned 8 January 1999)

Giochi e Giocattoli SpA (resigned 18 October 1998)

Publikids SRL (resigned 27 January 1999)

Toy Service SpA (resigned 18 October 1998)


Toy Service SpA ('TSS'), an Italian corporation, operated a business as a toy
retailer from a number of premises in and around Turin, Italy, up until 1995. In
1995, TSS commenced the implementation of an ambitous expansion plan to extend
its operations throughout Italy. A combination of high costs associated with the
expansion, vigorous competition from the existing toy retailers and the
difficult trading conditions in the Italian toy market, particularly in 1998,
resulted in TSS sustaining substantial and unanticipated losses. As a
consequence, TSS became insolvent in or about late 1998, when the its
administration passed into the hands of an official appointed under the
applicable Italian insolvency legislation (broadly similar in function to a
liquidator in the UK).

TSS was, at that time, a wholly owned subsidiary of Linea Gig SpA. Gig
Distribuzione SpA and Publikids SRL were also subsidiaries (the 'Subsidiaries')
of Linea Gig SpA. Linea Gig SpA had guaranteed a number of the obligations and
liabilities of TSS and, as a consequence of the TSS insolvency and the demands
of its creditors, was found itself, notwithstanding its profitable trading to
that time, to be insolvent along with ithe Subsidiaries.

Formal deeds of arrangement, pursuant to which the claims of the creditors of
Linea Gig SpA, TSS and each of the Subsidiaries were compromised in a manner
binding on all of the creditors and the relevant companies, were approved by the
official court in Florence, Italy between November 1999 and July 2002. As a
consequence, preferential creditors of these companies received or will receive
payment of all indebtedness due to them and other creditors received or will
receive approximately 40% of the amounts due to them. The total shortfall in
meeting in full the claims of the creditors of these various companies has been
estimated to be approximately £55 million.

Aldo Horvat was not engaged in relation to the day to day management of the
business of TSS and was, in effect, a non-executive director of TSS at all
relevant times. Mr Horvat was the Chief Executive Officer of the other companies
referred to above at all material times. There was no public criticism of Mr
Horvat by any statutory or regulatory authorities (including any recognised
professional bodies) by reason of the events described above nor has Mr Horvat
been disqualified from acting as a director of a company or in the management or
conduct of the affairs of any company by reason of these matters.

There is no other information to be disclosed pursuant to paragraphs 6.F.2(b) to
(g).


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