Pre-Close Trading Update

Character Group PLC 13 September 2006 Issued by Citigate Dewe Rogerson Limited, Birmingham Date: Wednesday 13 September 2006 Embargoed: 7.00 am The Character Group plc Designers, developers and distributors of toys, games and gifts Pre-Close Trading Update The Board of The Character Group ('the Company' or 'the Group') today provides an update for the Company's results for the year ended 31 August 2006, ahead of entering into the two month close period, prior to the announcement of its preliminary results which is expected to take place at the end of November 2006. The Directors are pleased to report that the vast majority of deliveries scheduled to be completed at the very end of August were distributed on time with the net impact being that trading in the final days of the financial year ended 31 August 2006 exceeded even the very satisfactory finish to the year anticipated by the Board and referred to in the RNS announcement made on 22 August 2006. As a result of this strong finish to the year, the Board anticipates that the Group will further exceed the recently revised market expectations for the financial year to August 2006. The current new financial year (ending 31 August 2007) has started strongly with our order book looking healthy and our major product lines performing well at retail. We are particularly pleased with the performance of our Dr Who, Scooby Doo, Gr8 Gear, Peppa Pig and Robotic product ranges. Last week the Robosapien V2, the super-intelligent robot which is the closest thing to a real life companion, was voted Number 1 Toy in the Duracell European Toy Survey 2006 (the only Pan-European Toy Survey that asks the users of toys - children - to nominate their favourites from toys available in store for Christmas 2006). In addition, after only three weeks of the new series having been aired on GMTV, we are encouraged by the growth in sales at retail of our Biker Mice from Mars range. The Board is confident that following recent changes to the Directorate at both Main Board and subsidiary level, the Group is well positioned to continue its development. Enquiries: The Character Group plc Charles Stanley Securities Citigate Dewe Rogerson Ltd Richard King, Executive Chairman Rick Thompson Fiona Tooley Kiran Shah, Group Finance Director Philip Davies Tel: +44 (0) 20 8949 5898 Tel: +44 (0) 20 7149 6457 Tel: +44 (0) 121 455 8370 Mobile: +44 (0) 7836 250150(RK) Mobile:+44 (0) 7785 703523 +44 (0) 7956 278522(KS) www.thecharacter.com www.characteronline.com CCT.L Sector: Media, AIM Notes to Editors: About The Character Group plc The Character Group plc designs, develops and distributes toys, games and giftware, principally to the UK although it has an ever increasing exposure to international markets. Revenues are generated from a mix of product with over 50% designed and developed in-house either under the Group's own brand or under licence with the balance being derived from third party distribution. Notable product lines are Dr Who, Scooby Doo, Biker Mice from Mars, Peppa Pig, GR8 Gear, Robosapien, Roboraptor and Robopet. For a more comprehensive view of the product portfolio, please refer to www.characteronline.com. During the first six months of the current financial year (ending 31 August 2006), The Character Group underwent a major reorganisation with the disposal of its Digital Business in February 2006. The structure is now designed to maximise the strength of, and focus on, the core business of Toys, Games and Gifts. www.thecharacter.com CCT.L Sector: Media, AIM This information is provided by RNS The company news service from the London Stock Exchange
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