Update re: Bindeez Products

Character Group PLC
09 November 2007

Issued on behalf of The Character Group plc
Date: Friday, 9 November 2007

                                                              Embargoed: 7.00am


                            The Character Group plc
                     Update in relation to Bindeez products


The Board of The Character Group plc ('Group' or 'Company') wishes to update
shareholders in relation to Bindeez branded products distributed by the Group in
UK and Eire on behalf of the manufacturers, Moose Enterprise Pty, Australia 
('Moose').

Following a number of reported cases of illness in Australia, the Group
announced on Wednesday (7 November 2007) that it had recommended to its
customers to withdraw from sale all Bindeez products whilst independent test
laboratory and EU toxicologist tests were being undertaken.

Whilst there have been no cases of illness reported in the UK and Eire, we have
been made aware of a further case reported in the USA in relation to this
product range.

Although at this stage the Group is still awaiting the test results, in light of
this additional reported incident in the USA and in an effort to avoid any
potential risk to children as well as prevent confusion or concern with UK and
Eire consumers, the Directors have decided, as a further safety measure,
voluntarily to recall from retail and consumers all Bindeez Products distributed
by the Group.

The Group takes all reasonable measures to ensure that all its products are safe
and that children's safety is the priority. In this particular case, it appears
that an unapproved formulation may have been used in the manufacturing process
and this is now being rectified. In addition to ensuring the use only of
approved bead formulation, Bitrex(R) has been added to the manufacturing process
of all replacement products. This safe solution leaves a bitter taste on oral
contact so as to dissuade children from placing the product in the mouth.

The Directors anticipate that new supplies, which conform to the correct
specification, will commence to be shipped from the first week of December 2007.
Due to the interruption to supplies, it is inevitable that the Group will lose
some sales at this busy time of the year. Despite this, the Directors expect the
Bindeez brand to grow during the current financial year as a whole.

The Directors will continue to keep shareholders updated as appropriate.

Details of the Voluntary Recall Notice will appear on the Group's website
www.character-online.co.uk.



Enquiries:
Richard King, Chairman                            Fiona Tooley, Director
Kiran Shah, Group Finance Director & Joint MD     Keith Gabriel, Senior Account Manager
The Character Group plc                           Citigate Dewe Rogerson
Tel:       [phone]                   Tel:     [phone]
Mobile:    [phone] (RK)               Mobile:  [phone] (FMT)
Mobile:    [phone] (KS)
www.thecharacter.com
www.character-online.co.uk

Richard Thompson
Philip Davies
Charles Stanley Securities
Nominated Advisor
Tel:       [phone]




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