Director Shareholding

Character Group PLC
05 February 2003

         The Character Group plc ('Character Group' or 'the Company'))

                             Dealings by Directors



The Company was informed yesterday afternoon that, by deeds executed, dated and
delivered to the Company yesterday, Jon Diver and Joe Kissane, executive
directors of the Company, have waived their rights in respect of options over
100,000 new ordinary shares each in the Company and released the Company from
any obligations relating thereto. These options were grantred pursuant to the
Company's Inland Revenue Approved 1995 Executive Share Option Scheme and were
exercisable at 107p per share from 28 March 1999 to 27 March 2006.

Further, the Company announces that it has today granted options over 185,000
new ordinary shares in the Company to each of Jon Diver and Joe Kissane. These
options have been granted pursuant to the Enterprise Management Incentive Share
Option Scheme which was approved by shareholders on 22 January 2003. The options
are exercisable at a price of 54 pence per share and normally no earlier than
three3 and not later than 10 years from the date of grant, subject to the
achievement of predetermined profit related performance targets.







5 February 2003


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