Update

Character Group PLC
22 September 2005





Issued by Citigate Dewe Rogerson Ltd, Birmingham
Date: Thursday, 22 September 2005
                                                               IMMEDIATE RELEASE

                     The Character Group plc ('the Group')
                                     Update

At the time of the Group's interim results statement issued in April, the
Company highlighted its intention to seek an Admission to AIM as it provides in
the Board's view, a more flexible environment in which to achieve the Group's
objectives and reduce costs and formalities relating to listing and future
transactions.

At the same time, the Directors also confirmed that they recognised the need to
strengthen the executive and operational management teams and position the Group
for its next stage of development.

The Group's focus continues to be the improvement in its operational
efficiencies and further development of its product portfolio. Having taken into
account the progress being made in the trading position of the Group and the
need to manage each of the Group's businesses, the Board has decided that whilst
the proposed changes to the Group structure are being completed, it would be in
both the business and its shareholders interests that, with their strength and
experience within the business and sectors in which the Group operates, Richard
King and Kiran Shah are appointed interim joint managing directors to oversee
the changes.

Accordingly, Enrico Preziosi has stepped aside from his executive role as Chief
Executive Officer and Managing Director with immediate effect. Giochi Preziosi
S.p.a remains a 22.5% shareholder and the Board is not aware of any intention by
Giochi Preziosi to reduce its shareholding in the Group.

The process of transferring from the Official List to AIM has commenced and
details will be included in a Circular to be posted to shareholders in due
course. Subject to shareholder approval at an EGM, the move will be completed as
soon as practicable.

As part of the Group's on-going review, the Board, as it indicated in April, is
also considering the possible de-merger of World Wide Licenses ('WWL') and
simultaneously seeking an Admission to AIM for WWL's shares in their own right.
Whilst there are no immediate plans to make this move, the Board believes that
this could also better promote shareholder value.

Shareholders will be kept informed of developments as appropriate.

The Group expects to announce its Preliminary Results for the year ended 31
August 2005 in November.


Enquiries:
Richard King, Chairman
Kiran Shah, Group Finance Director       Fiona Tooley, Director
The Character Group plc                  Citigate Dewe Rogerson
Tel: [phone]                Tel: [phone]
Mobile: [phone] (RK)         Mobile: [phone] (FMT)
Mobile: [phone] (KS)
www.thecharacter.com





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