Re Alliance

Character Group PLC
01 June 2004


Issued on behalf of The Character Group plc
Date: Tuesday 1st June 2004 Immediate Release

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

 New Distributor for digital products appointed in the USA and basis of Global
                              Alliance established

The Character Group PLC is pleased to announce that through its trading
subsidiary, World Wide Licenses ('WWL'), the Group has established a basis for a
global alliance with USA based Petters Consumer Brands, LLC. ('Petters').
Pending final terms being agreed, Petters has commenced the marketing and
distribution of WWL's range of Polaroid branded digital cameras in the USA.
Through this partnership, both companies will have the right to market each
others products as well as working together to develop new worldwide
opportunities.

Richard King, Chairman, The Character Group plc commented:
'Over the past weeks we have worked closely with the team at Petters and we are
confident that this global alliance will exceed our previous expectations for
sales in the USA and provide new product categories for distribution within our
international and domestic markets. This is the first time that we have had a
truly strong and broadly based US partner and believe that the sales and
distribution of our Polaroid digital cameras will benefit significantly as a
direct result. Together, we can exploit the opportunities that exist utilising
the enhanced skills-set across both organisations which will enable both
companies to enter into new product categories'.

Bill Dunlap, Chairman, Petters Consumer Brands added:
'We are very pleased to be working with WWL. The alliance will not only give our
existing strong retail base access to a wider range of world class branded
products, it will be advantageous to both our companies and our retail partners
as it will allow us to consolidate manufacturing, marketing, sales and
distribution of Polaroid branded products in the most cost effective manner
possible.'

Enquiries:
Richard King, Executive Chairman
Kiran Shah, Group Finance Director
The Character Group plc
Tel: [phone]
Mobile: [phone] (RK)
Mobile: [phone] (KS)
e-mail:[e-mail]

Fiona Tooley
Citigate Dewe Rogerson
Tel: [phone]

Mary Pernula
Petters Consumer Brands, LLC.
[phone].8208
[e-mail]

Editor's Notes:
World Wide Licenses Ltd ('WWL')
WWL is the Hong Kong-based wholly owned subsidiary of The Character Group PLC.
Founded in 1991, the Character Group PLC is fully listed on the London Stock
Exchange, Media and Photography sector. World Wide Licenses Ltd. designs and
develops digital interactive products including digital cameras, web cams, and
digital ID system cameras for global distribution. WWL is Polaroid's exclusive
worldwide licensee (except for People's Republic of China) for digital cameras.

To learn more about WWL, visit their website at www.polaroid-digital.com.

Petters Consumer Brands, LLC. ('Petters')
Petters creates partnerships with global manufacturers to develop products and
brand extensions for distribution through retail, Internet, catalog, and
specialty channels.

Petters' licensed line of Polaroid(R) consumer electronics, currently for
distribution in North America, includes TVs, DVDs, portable DVD players, and
other home entertainment products that are supported by the strength of the
Polaroid(R) brand. The line fills the gap in a category that consumers prefer;
electronics that are competitively priced but engineered to the highest quality
standards - a proven and increasingly successful strategy in the retail
marketplace.

To learn more about Polaroid(R) brand consumer electronics' visit their website
at www.polaroidelectronics.com.



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