Update re Refinancing

Character Group PLC
15 June 2001


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

Update

Further to the announcement made on 29 May 2001, the Company is pleased to
announce that the short term loan of £2.5 million from Toys Investment SA was
received on 8 June 2001.

The Company announces that it is in the final stages of completing the
refinancing of the Group, in the form of a £4.6 million convertible loan and a
rights issue, and now expects details of such refinancing to be circulated to
shareholders by not later than Friday 22 June 2001.

For further information please contact

Richard King

0208 949 5898

15 June 2001