Trading Statement

Character Group PLC
08 October 2003



Issued by Citigate Dewe Rogerson Limited, Birmingham

Date: Wednesday 8 October 2003

                                                              Embargoed: 11.00am

                            The Character Group plc

                         •Preliminary Announcement Date
              •New product lines added to the Character portfolio


The Character Group plc ('Character' or 'the Group') expects to announce its
preliminary results for the year ended 31 August 2003 on 25 November 2003.


Trading in the year ended 31 August 2003 has been in line with budget and
pre-tax profits should at least meet market expectations.


Within the Toy Division, a number of ranges have performed strongly including
the Group's own developed Ready Steady Cook range where it has continued to sell
through well at the retail end to the consumer. The new products added to the
range should ensure that this range's appeal continues.


The strong performance reported at the interim stage within our Digital Division
continued in the second half and is reflected in the improved sales of the
Group's digital camera ranges produced  both under our own brand Cool-iCam(R) and
under the Polaroid(R) brand with the latter already being exported to over 30
countries. We expect that, with the continued introduction of new upgraded
models, some of which have been developed entirely by our own development teams,
this trend will continue throughout the current financial year.


New products for 2004

The Group is pleased to announce that its principal trading subsidiary,
Character Options, has recently signed three new agreements with MGA
Entertainment Inc. ('MGA'), Universal Studios Consumer Products Group Europe
('Universal Studios') and Those Characters From Cleveland, Inc.


The agreement with MGA, gives Character Options the UK distribution rights for
MGA's new, proprietary and licensed toy lines including the 4-Ever Best FriendsTM
doll line, FaireesTM, its award-winning remote control lines including Land AirTM
and Land SeaTM R/C vehicles, as well as the forthcoming Spider-ManTM 2 products.


The agreement, with Those Characters From Cleveland, Inc. (an American Greetings
Company) relates to the Strawberry Shortcake(R) character which is one of a
growing line of 1980's characters returning to the limelight. Under the license,
Character has been awarded the master toys license including dolls for the UK.
The Strawberry Shortcake(R) character is aimed at four to nine year-olds and will
be launched in the UK in February 2004.


The agreement with Universal Studios gives Character the UK distribution of the
master toy line of products inspired by the film, Dr. Seuss' The Cat in the Hat,
which is scheduled for release in the UK next April.









continued...


                                      -2-



Richard King, Chairman, The Character Group commented:


'Our product portfolio continues to be strengthened as we introduce more
licensed products as well as products designed and developed in house which give
us greater scope for international sales going forward .


'We are delighted to enhance our portfolio with MGA in the next calendar year
using brands that will increase our market share in the UK for 2004.


'It is also very exciting for us to be re-introducing Strawberry Shortcake to
the UK. Strawberry Shortcake was an outstanding success in the 1980's and we are
developing a completely new product range which will be introduced throughout
the next calendar year.


'Our toy ranges will be on show at the BATR Toy Fair in London in January, and
our digital products will be displayed at various camera shows throughout the
next calendar year, including PMA in Las Vegas, USA, CeBIT in Hanover, Germany
and PhotoKina in Cologne, Germany.


'We believe that the strength and quality of our products across the Group will
provide a solid foundation for another successful year.'



Enquiries:
Richard King, Chairman
Kiran Shah, Group Finance Director Fiona Tooley, Director or Katie Dale, Manager
The Character Group plc            Citigate Dewe Rogerson
Today: (mobile): 07956 278522 (KS) Today: (mobile) 07785 703523
Thereafter: 020 8949 5898          Thereafter: 0121 455 8370



Editors Notes:


About MGA Entertainment:

MGA Entertainment, a consumer entertainment products company, manufactures
innovative lines of proprietary and licensed products, ranging from special
feature and mini dolls to hi-tech radio controlled vehicles.  BratzTM, The Girls
with a Passion for FashionTM  were introduced in June 2001, and has since become
one the world's premiere toy lines and girls lifestyle brands.


The brand is also noted for having won the Toy Industry Association (TIA)
People's Choice Toy of the Year Award in 2002 and 2003.  Visit online at:
www.mgae.com, www.bratzpack.com


About Dr. Seuss' The Cat in the Hat:

Mike Myers stars in the title role of Dr. Seuss' The Cat in the Hat, the
highly-anticipated film adaptation of the beloved literary classic.  A Universal
Pictures/DreamWorks Pictures/Imagine Entertainment presentation, Dr. Seuss' The
Cat in the Hat is being produced by Academy Award(R) winner Brian Grazer and
directed by Bo Welch, an Oscar(R)-nominated film production designer making his
debut as a film director. The film also stars Alec Baldwin, Kelly Preston,
Dakota Fanning, Spencer Breslin, Amy Hill and Sean Hayes.


The Cat in the Hat by Dr. Seuss was first published in 1957, and remains one of
the top ten best-selling hardcover children's books of all time.  The
mischievous feline visitor in the striped stove-pipe hat makes his big screen
debut with this live-action production, which will bring the delightfully
off-kilter Dr. Seuss characters - as well as some new ones created especially
for the film - to life on the big screen.


About Universal Studios Consumer Products Group:

Universal Studios Consumer Products Group (USCPG) is responsible for global
licensing and retail strategies as well as building brand recognition.  USCPG is
a unit of Universal Pictures, a division of Vivendi UNIVERSAL Entertainment
(VUE) (www.universalstudios.com), the U.S.-based film, television and recreation
entity of Vivendi Universal, a global media and communications company.






                      This information is provided by RNS
            The company news service from the London Stock Exchange