Statement re safety & quality

Character Group PLC
16 August 2007



Issued on behalf of The Character Group plc, by Citigate Dewe Rogerson,
Birmingham
Date: Thursday, 16 August 2007
                                                               Immediate Release

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

 Statement regarding the Group's position in relation to Quality and Safety of
                             its product portfolio

Over the last week, there has been a substantial amount of media coverage
relating to toy safety issues from both a manufacturing and end-product quality
position. The Directors can assure both shareholders and consumers that the
Group's business is not directly associated with any of the recently reported
problems within our sector.

The Directors of Character feel it would be beneficial to explain the Group's
position on this very important topic.

Following the recall of certain toy products by Mattel this week, the UK's toy
industry trade body, The British Toy and Hobby Association (BTHA) has issued a
statement on 14 August 2007 (http://www.btha.co.uk/press/
BTHA-statement-on-toys-from-China.php), which states that 'the safety of
children is the toy industry's top priority'. This view is shared by all the
leading players in our industry.

The Board of Character can confirm that the Company takes all reasonable steps
to ensure that its products are safe, and we unequivocally support the view of
the BTHA that children's safety is priority.

Around 70% of the Group's product portfolio is designed and developed in-house.
Whilst manufacturing is outsourced, this is closely monitored to ensure that
quality remains high and adheres to the strictest guidelines that are required
to meet both the Group's and our customers' criteria for manufacturing and
quality.

To that end Character has continually, over a number of years, initiated and
further developed a stringent quality control regime which is regularly reviewed
and updated. This includes but is not limited to:

   • Testing all products through independent laboratories to ensure they
    comply with all EU toy standards, including EN71-3 which prohibits the use
    of lead in toys.


   • Independent assessment of all factories by experienced auditors prior to
    order placement to ascertain each factory's competency in relation to
    hazardous substance control.


   • Assessment of design risk undertaken through the product development
    process to ensure that possible production problem areas are eliminated at
    the design stage.


   • Continuous programme by senior management to review both internal and
    external systems and procedures to ensure steady improvement.



continued...

                                      -2-

In addition to the above, the Group is working towards full implementation of
the strategy of ensuring that all of the Group's suppliers are required to be
registered and compliant with the ICTI CARE process.

The CARE process ('Caring, Awareness, Responsible, Ethical') is the
International Council of Toy Industries' (ICTI) program to promote ethical
manufacturing, in the form of fair labour treatment, as well as employee health
and safety in the global toy industry supply chain with its initial focus being
China, where around 80% of the world's toy volume is currently manufactured. The
ICTI CARE project objective is to provide a single, fair, thorough and
consistent programme that will monitor toy factories to ensure compliance with
its Code of Business Practices (www.icti-care.org).

The Group will continue to focus on delivering toys and related products that
not only meet the demand of the consumer but also have been manufactured or
sourced to the highest standards and therefore adhering to the Group's and UK
and international bodies' strict guidelines.

Enquiries:
Richard King, Chairman           Fiona Tooley, Director
Kiran Shah, Group Finance        Keith Gabriel, Senior       Philip Davies
Director & Joint MD              Account Manager
The Character Group plc          Citigate Dewe Rogerson      Charles Stanley
                                                             Securities
                                                             Nominated Adviser
Tel: [phone]        Tel: [phone]   Tel: [phone]
Mobile: [phone] (RK) Mobile: [phone]
                                 (FMT)
www.thecharacter.com

Notes to Editors:

The Character Group Plc designs, develops, markets and distributes toys and
games, principally to the UK market although it has an increasing exposure to
the international market.

Revenues are generated from a mix of product ranges with over 70% designed and
developed in-house either under the Group's own brand or under licenses with the
balance being derived from 3rd party distribution. Notable product lines within
the Character portfolio are Doctor Who, Scooby Doo, Disney Princess, Peppa Pig,
Barney, Gr8 Gear, Wow Wee Robotics (including Robosapien). For a more
comprehensive view of the product portfolio please refer to
www.Character-online.com




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