Trading Statement

Character Group PLC
11 March 2003




Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Tuesday, 11 March 2003                                 Embargoed: 7.30am



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

              Statement re: press speculation and trading update


The Board of Character Group confirms that the Company has received an informal
approach from a US toy company as reported in the Guardian newspaper at the
weekend. The Board wishes to stress that the approach was on an informal basis
and that whilst the initial discussions are ongoing, they are at a very early
stage and that any deal would have to fully reflect the Group's prospects. At
this stage, the Directors consider that it is unlikely that a formal offer will
be forthcoming.



The Board also wishes to take this opportunity to further update shareholders on
current trading since the statement made at the Company's Annual General Meeting
on 22 January 2003. The Directors are pleased to announce that the buoyant
trading conditions experienced in the Group's Toys and Games Division over the
Christmas period have continued into the New Year.  Trading in the Group's other
two divisions are in line with budget. Latest estimates indicate that pre-tax
profits for the half year to 28 February 2003 are likely to be in excess of £4
million, which is equivalent to current market expectations for the full year.



Enquiries:
Richard King, Chairman                    Fiona Tooley
Kiran Shah, Group Finance Director        Director                     Mark Connelly
The Character Group PLC                   Citigate Dewe Rogerson       Collins Stewart
Tel: [phone]                        Tel: [phone]           Tel: [phone]
Mobile: [phone] (RK)                 Mobile: [phone]
07956 278522 (KS)




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