EGM Statement

Character Group PLC
15 February 2006



Issued on behalf of The Character Group plc
Date: Wednesday, 15 February 2006
                                                               IMMEDIATE RELEASE

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

                Result of Extraordinary General Meeting ('EGM')
                               and Trading Update

The Directors of The Character Group plc are pleased to announce that, at the
EGM held today (15 February 2006), shareholders approved the sale of the digital
products division of World Wide Licenses Limited ('WWL') and related assets to
Flextronics Sales and Marketing (A-P) Limited ('Flextronics').

The total sale price consists of goodwill of US$16 million and the value of
stocks and assets less certain liabilities to be assumed by Flextronics that
will be determined at the completion of the sale, which is expected to take
place on Friday 17 February 2006.

Ian Fenn, the Company's Senior Independent Non-Executive Director and Chairman
of the Meeting, informed shareholders in attendance that:

'Given the quick succession of the EGM today and the AGM next week, the Board
felt it appropriate to update shareholders on trading at today's meeting.

'As previously reported, this financial year has started strongly for the Group,
with sales in the four months to December 2005 up by 60%, on a like-for-like
basis. Whilst this rate of increase may not continue throughout the year, we are
confident that revenues in our Toys, Games and Gifts businesses, on a
like-for-like basis for the financial year ending August 2006 and the calendar
year ending December 2006, will both provide solid growth over the previous
corresponding periods.

'Our Toys, Games and Gifts businesses have recently completed marketing at shows
both in the UK and internationally and we are delighted to report that we are
already experiencing a very solid start to our spring sales, with volumes at
retail being very positive. This, together with the reception from the UK retail
trade and our international distributors to our 2006 ranges, underpins our
optimism for a solid trading performance to come.

'Within our Toys business, we would expect that the outstanding product ranges
for boys will be our robotic products, 'Dr Who', 'Biker Mice from Mars', 'Gr8
Kit Tattoo' (now sold in many overseas territories including the USA) and
'Superman', and for girls; 'Disney Princess' and 'Witch'. We are also seeing
sales continue to increase in our 'Gr8 Gear range' which is now in its third
year.

'In addition, as well as developing our pre-school range which currently
includes 'Peppa Pig', we have recently secured a European licence for 'Scooby
Doo' to add to our strong UK sales.

'We have seen significant improvements from within our Games and Gifts
businesses and by the end of the financial year we expect to deliver a
significant increase in turnover through a lower, more focused number of
products. Notable inclusions in the consolidated range include 'Sudoku', a new
game 'Red Light Green Light' and another new game 'Speed Stacks' (
www.SpeedStacks.com), which will be launched in May 2006 and, we believe, could
be the craze of the year.

'Within our Gifts business, 'Little Britain' products have started the year well
whist the recent introduction of 'Trolls' to our solid product offering is
already showing very encouraging results at retail.

'Although we expect to continue to operate in a very competitive trading
environment, the business has made substantial progress both operationally and
in terms of sales. Overall, we are delighted with the Group's portfolio of
products and we look forward to achieving further successful trading and growth.

'I would also like to take this opportunity to confirm that the Board is mindful
of its ultimate goal of increasing shareholder value. As part of this process,
the Group will consider, at an appropriate time or times, making market
purchases of its own shares, either for cancellation or into treasury, up to a
maximum of 25% of the issued share capital of the Group.'

Earlier today the Group informed the London Stock Exchange that it has received
approaches which may or may not lead to an offer or offers being made for the
Company. Shareholders should note that discussions are at a very preliminary
stage and the level and form of any eventual consideration is presently unclear.
A further announcement will be made as soon as is practicable.





Enquiries:

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





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