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
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