New Master Licence

Character Group PLC
28 September 2007



Issued by Citigate Dewe Rogerson, Birmingham

Date: Friday, 28 September 2007

                                                               Embargoed: 7.00am



                            The Character Group PLC

                                   ('Group')



                                CHARACTER SEALS

                MULTI-YEAR PARTNERSHIP WITH ENTERTAINMENT RIGHTS



                          Character Options Appointed

           Master Toy Licensee For Postman Pat in the UK and Eire(R)



The Character Group is pleased to announce that its principal trading
subsidiary, Character Options Limited ('Character Options'), has been appointed
as Master Toy Licensee for Postman Pat(R) by Entertainment Rights Plc ('ER'),
the UK's leading global media group specialising in the ownership of children's
and family programming, characters and brands.



The agreement between Character Options and ER covers the UK and Eire. The range
of products to be produced under licence includes toys, playsets, plush and
collectables.  Under the terms of the deal, Character Options will begin
developing new product lines for Postman Pat(R), with new product appearing with
retailers late 2008 to coincide with the brand new TV series which airs on
CBeebies and BBC TWO.



Jon Diver, Joint Managing Director of Character Group said:

'Postman Pat(R) is an iconic brand with an established heritage which has
continually delighted pre-schoolers for over 25 years.



'Character Options' plan is to produce a comprehensive range at a new scale to
that previously seen in the market, including characters from the classic and
new series.  The range will be heavily promoted from the first week we ship in
early 2009. We believe that this licence will become an important brand within
our portfolio, and a Top-5 pre-school property.'



Richard King, Executive Chairman at Character commented:

'We are very pleased to be awarded this licence and look forward to launching a
full toy range that will match the success of this iconic character.



'The Group will continue to focus on delivering toys and related products that
not only meet the demand of the consumer but also have been manufactured or
sourced to the highest standards and therefore adhering to the Group's and UK
and international bodies' strict guidelines.'



Claire Shaw, Director of Consumer Products, Entertainment Rights Plc, added:

'In the new BBC series for Postman Pat(R), we are taking the much loved and well
known characters of the show into a dynamic new environment.  The show has an
expanded diverse cast, a fleet of new vehicles, a new town and dynamic, fast
paced storylines, which provides an excellent basis from which to develop
innovative new toy products.



'Character Options has an incredibly strong pedigree in exploiting children's
television shows and we are confident they will take Postman Pat to another
level within the pre-school toy category.'



Entertainment Rights has 80 episodes of Postman Pat(R) in its catalogue which is
exclusively licensed to the BBC and the brand new series (26x15 minutes
episodes) sees Postman Pat(R) in a new job as he takes on a promotion as Head of
Special Delivery Service (SDS).  Whilst maintaining the brand integrity of the
classic character, the new Postman Pat(R) will have a higher energy approach.
Postman Pat(R) is one of the top rating pre-school shows airing on CBeebies and
is an established core BBC character.




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)
www.thecharacter.com

Nominated Adviser:
Philip Davies
Charles Stanley Securities
Tel: [phone]





Notes to Editors:

AIM listed, The Character Group Plc (Ticker: CCT.L) designs, develops, markets
and distributes toys and games, principally to the UK market although it has an
increasing exposure to the international market.



The Group operates mainly in the United Kingdom and China, and has offices in
London, Oldham, Hong Kong and Shenzhen, China. It employs around 225 people
worldwide.



Revenues are generated from a mix of product ranges with over 70% designed and
developed in-house either under the Group's own brand or under licences with the
balance being derived from third-party distribution.  Products are now sold in
over 30 countries.



Notable product lines within the Character portfolio are Doctor Who, Scooby Doo,
Disney Princess, Peppa Pig, Barney, Gr8 Gear, Wow Wee Robotics (including
Robosapien).  For a more comprehensive view of the product portfolio, visit
www.character-online.com.





About Entertainment Rights:

Entertainment Rights Plc ('ER') is the UK's leading global media group
specialising in the ownership of high quality children's and family programming,
characters and brands.



ER owns or controls the rights to many global characters including Basil Brush
(R), Postman Pat(R), Jess the CatTM, Little Red TractorTM, Rupert Bear(R),
He-Man and the Masters of the Universe(R), Fat Albert and the Cosby kidsTM,
She-Ra(R), Jim Jam & SunnyTM, Ghostbusters, The Lone Ranger, Lassie, Rudolph the
Red-Nosed Reindeer, Casper the Friendly Ghost, Felix the Cat and the
award-winning Veggie Tales



ER's annual revenues have increased from £1.8m in 1999 to £29.7m in 2006, the
last reported financial year. Interim Results for the six months ended 30 June
2007 were announced yesterday and reflect revenues up 196% to £17.3m.



Visit www.entertainmentrights.com


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