Transaction in Own Shares

Character Group PLC
26 June 2006


The Character Group plc

26 June 2006


                   The Character Group plc (the 'Company')


                    Share Buyback and Holding in Company


The Company advises that is has today purchased through Charles Stanley
Securities 5,015,000 ordinary shares in the Company at a price of 58 pence per
share. Of the total shares repurchased, 4,015,000 ordinary shares are for
cancellation and 1,000,000 ordinary shares are to be held as treasury shares.

Following the cancellation of these shares, the Company has 47,839,909 ordinary
shares in issue (excluding shares held as treasury shares).

The Company has received notification from Valtidone S.p.A. that following a
disposal of shares in the Company, it no longer has a notifiable interest in the
Company's issued share capital.

Richard King, Chairman, stated that the Board was very happy to have been able
to take the opportunity to buy back just under 10% of the Group's outstanding
shares.  The Directors believe that this is in the interests of all the
shareholders.  It was achieved out of the Group's resources and, furthermore,
demonstrates the Directors confidence in the trading position of the Group.


Enquiries:

The Character Group Plc           Charles Stanley Securities           Citigate Dewe Rogerson Ltd
Richard King / Kiran Shah         Rick Thompson / Philip Davies        Fiona Tooley / Katie Dale

Tel: [phone]                Tel: [phone]                   Tel: [phone]
Mob: [phone]/

07956278522



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