Change in Share Ownership

Character Group PLC
22 July 2002



Issued by Citigate Dewe Rogerson, Birmingham

Date: Monday, 22 July 2002     Embargoed 11.30am


                            The Character Group plc

                           Change in Share Ownership



The Directors of The Character Group plc ('Character' or 'the Company') announce
that Giochi Preziosi S.p.A. ('Giochi Preziosi'), one of Italy's leading
designers, distributors and retailers of toys and related products with an
annual turnover of approximately £295 million, purchased 11,885,898 ordinary
shares in the Company ('Ordinary Shares') on 19 July 2002. These Ordinary
Shares, which represent approximately 28.8% of the Company's issued ordinary
share capital, were formerly held by Toys Investment S.A. ('TISA') and were
purchased at a price of approximately 44.12 pence per share (Euro 0.686 cents
per share), the total consideration being approximately £5,242,921 (Euro
8,151,169). The purchase price represents a premium of approximately 80% to the
closing middle market price of an Ordinary Share as at 19 July 2002 of 24.5
pence.

Giochi Preziosi was founded in 1984 by Enrico Preziosi (President). Enrico
Preziosi and Claudio Luti (a Vice President of Giochi Preziosi) together hold
99.5% of the issued share capital of Giochi Preziosi.

In August 2000, TISA, the private investment vehicle of Enrico Preziosi and
Claudio Luti acquired a total of 3,467,949 Ordinary Shares. At the same time,
Enrico Preziosi joined the Board of Character as a Non-Executive Director. In
May 2001, he was appointed Chief Executive Officer and Managing Director of the
Company. In August 2001, TISA increased its shareholding in Character to
11,885,898 Ordinary Shares representing approximately 28.8% of the Company's
issued ordinary share capital. This position remained unchanged until the close
of business on 18 July 2002.


Commenting on the change in arrangements by Messrs Preziosi and Luti for the
holding of their underlying major share ownership within the Company, Richard
King, Chairman said:


'The transfer of share registration from TISA to Giochi Preziosi in no way
affects the close trading relationship between the parties as the ultimate
beneficial ownership of the shares remains unchanged.'


'Over the last five years the trading link has strengthened both businesses in
their respective countries. We are confident that this partnership will continue
to enhance both businesses in the future.'


Exchange rate : £1=Euros 1.5547


Enquiries:
Richard King, Chairman                                    Fiona Tooley, Director

Kiran Shah, Finance Director                              Keith Gabriel, Account Executive

The Character Group plc                                   Citigate Dewe Rogerson

Tel: [phone]                                        Tel: [phone]


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