Share buy-back and Update

Character Group PLC
25 May 2004




Issued by Citigate Dewe Rogerson, Birmingham on behalf of The Character Group
plc
Date: Tuesday 25th May 2004

                                                               Immediate Release


               The Character Group plc ('the Company' or 'Group')
                           Share buy-back and Update


Notification is given that, pursuant to the authority granted at the Annual
General Meeting of the Company held on 21 January 2004 to make market purchases
of the Company's own shares, the Company has today purchased for cancellation
25,000 ordinary shares of 5 pence each in the capital of the Company ('Ordinary
Shares') at a price of 81 pence per share. Following this purchase and
cancellation there will be 52,671,509 Ordinary Shares in issue.

This purchase for cancellation by the Company, together with the purchases of
100,000 Ordinary Shares made at 100 pence per share announced on 29 and 30
April, brings the total number of Ordinary Shares purchased by the Company for
cancellation since the announcement of the Group's Interim Results on 29 April
2004 to 125,000 Ordinary Shares.

As the Company indicated in its interim statement last month, it is looking to
achieve a solid performance from its digital products business during the second
half. The Company also remains optimistic that its new broad range of product
listings will provide a solid base to improve both sales and profitability
within its Toys Games and Giftware Division.

One of the new listings, which has already received a very encouraging reaction
from retailers is Robosapien, a unique personality featured robot which is being
launched by the Group with its inventor, Mark Tilden, on Friday 28th May at The
Gadget Shop, Covent Garden, London and on Saturday 29th May at Hamleys, Regent
Street before its regional launch in Glasgow and Manchester on 30th and 31st
May.

The Directors remain confident for the full financial year to August 2004 and do
not expect profits to be less than the previous financial year ended August
2003.




Enquiries:

Kiran Shah, Group Finance Director              Fiona Tooley, Director
The Character Group plc                         Citigate Dewe Rogerson
Tel: [phone]                              Tel: [phone]
Mobile: [phone]                            Mobile: [phone]
www.charactergroup.plc.uk
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