Trading Update

Character Group PLC
31 January 2007



Issued by Citigate Dewe Rogerson Limited, Birmingham
Date: Wednesday, 31 January 2007
                                                               Embargoed: 7.00am

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

    Update on The London Toy Fair, New Master Licence with BBC Worldwide and
                                Current Trading

Further to our recent Trading update read at our Annual General Meeting on 17
January 2007, the Board is now able to comment on the Group's performance and
successes at The London Toy Fair, which closed on Saturday 27 January 2007, and
provide further guidance on the Group's current trading.

Toy Fair 2007 update:
During this important Trade Show, we were delighted to have been awarded the
overall 'Toy of the Year' award for our Doctor Who Cyberman helmet together with
the 'Toy of the Year' award in the boys category for our Doctor Who action
figures.

The Board is especially pleased to have been acknowledged in this way by the toy
industry and considers that these awards clearly recognise the Group's growing
capacity to develop its own product lines, which are both innovative and
exciting for the consumer and our customers alike.

Following the conclusion of this event and other recent international trade
shows, we are very pleased with the responses to our new and existing ranges
from the trade in general and specifically from all our major customers.
Indications are that we are now expecting to achieve further substantial growth
through the 2007 calendar year.

Examples of the Group's new ranges that have been especially well received by
the industry and the retailers include: Bindeez; Movin & Groovin Flowers; This
Is Me (a new range of soft body dolls); Dragonfly and Roboquad (our new Robotic
introductions); and, not to be understated, the great reaction the Company
received for our new Doctor Who products.

The Sarah Jane Adventures - Master Licence awarded by BBC Worldwide
We are also delighted to announce a further project with BBC Worldwide relating
to the television programme The Sarah Jane Adventures, which has developed as a
spin-off from the Doctor Who series and which we believe will be very successful
in its own right.

Richard Hollis, BBC Worldwide Head of UK licensing commented:

'We look forward to strengthening our relationship with Character Group still
further and enjoying continued success with their toy ranges.'

Richard King, Chairman, the Character Group added:

'We are delighted to be awarded this second master licence by BBC Worldwide. It
clearly underpins the strength of our working partnership. It also reflects the
enormous amount of vision and talent that we have in the business and
demonstrates our ability to develop award winning ranges that appeal to both the
licensor, and perhaps even more importantly, the consumer.'

Current Trading
Despite the very mixed trading results at retail for last Christmas which have
recently been announced by retailers, the Board anticipates growth in sales with
all of its major trading partners and for each of its major product categories.

To date, Group sales in the continuing business are up by an estimated 35% for
the first five months of the current financial year. As a result, and taking
account of the strong reception we enjoyed to our new introductions, the
Directors now expect that the Group will exceed current market expectations.

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





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