Further Bindeez Update

Character Group PLC
27 November 2007

Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Tuesday, 27 November 2007                            IMMEDIATE RELEASE

                            The Character Group plc
                 Further update in relation to Bindeez products

The Board of The Character Group plc ('Group' or 'Company') wishes to provide a
further update to shareholders in relation to Bindeez branded products.

On 9 November 2007, the Directors announced a voluntary recall of Bindeez
products and that they anticipated new and replacement supplies of Bindeez beads
which conform to the correct specification would commence to be shipped from the
first week of December. Also, it was noted that some sales would be lost;
however, it was expected that the Bindeez brand would grow for the year as a
whole.

The latest position is that the exhaustive quality assurance and safety testing,
together with sourcing a new manufacturing facility to produce Bindeez products
where the production process can be monitored more closely to ensure consistent
quality, has taken longer than originally anticipated. This is because it is
paramount that the products meet both the international safety guidelines as
well as satisfying the Chinese Authorities export standards for products
produced in the country.

The impact of the delay is that the Group is now likely to lose up to £2.5
million of revenue from the Bindeez range in the run up to Christmas as well as
incurring the additional costs of the product recall. We do not expect Bindeez
to be back to the full sales level until the end of January 2008.

Whilst this has been an unfortunate and regrettable incident, it should be noted
that sales of Bindeez represents around 5 per cent of overall Group sales, and
the recalled products less than 2.5 per cent.

The Group has succeeded in developing its product portfolio with good saleable
and safe product over the past years and this trend is expected to continue. The
recall of Bindeez products is expected to have only a temporary effect on Group
performance.

The Directors will provide further updates on Bindeez as appropriate. With four
weeks left until Christmas it is still too early to comment on trading but the
Company will of course be providing an update at the Annual General Meeting to
be held on 16 January 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 Adviser
Tel:       [phone]




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