Circular to Shareholders

Character Group PLC
30 January 2006







Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Monday, 30 January 2006
                                                              IMMEDIATE RELEASE


                            The Character Group plc
                                 ('The Group')

                          Circular to Shareholders re:

       •Proposals for the Sale of the Digital Products Division of World Wide
                                Licenses Limited ('WWL')

                       •Notice of Extraordinary General Meeting

                       •Notice of Annual General Meeting


The Group announces that it will today be posting to Shareholders a Circular
relating to the proposed disposal of the Digital Products Division of WWL (the
'Digital Business') as announced on 25 January 2006.

The Digital Business owned by WWL is based in Hong Kong. Its key role is the
design and development of digital interactive products for global distribution.
WWL entered the digital camera market in June 2000, and has rapidly become a
significant supplier in this dynamic category, with its total shipment of
digital cameras well in excess of two million units worldwide.

In the financial year ended 31 August 2005, the Digital Business recorded profit
before tax of approximately £0.8 million. The total price consists of goodwill 
of US$ 16 million and the value of stocks and assets less certain liabilities 
to be assumed by Flextronics that will be determined at completion of the sale.

WWL's remaining operations, which include the management of logistical support
for the Group's remaining operations in the Far East, will continue.

The Circular also contains a Notice convening an Extraordinary General Meeting
of shareholders at 11.00am on Wednesday, 15 February 2006 to be held at the
offices of Citigate Dewe Rogerson Ltd, 26 Finsbury Square, London, EC2A 1DS, at
which approval for the proposed disposal will be sought.

Notice is also being sent to Shareholders convening the 2006 Annual General
Meeting of The Character Group plc which will be held at 11.00am on Wednesday,
22 February 2006 at the offices of Citigate Dewe Rogerson Ltd, 26 Finsbury
Square, London, EC2A 1DS.




Enquiries:
Richard King, Executive Chairman
Kiran Shah, Group Finance Director             Fiona Tooley, Director
The Character Group plc                        Citigate Dewe Rogerson
Tel: [phone]                       Tel: [phone]
www.thecharacter.com                           Mob: [phone] (FMT)



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