Character Regulatory News (CCT)

20 December 2010

The Character Group plc

(the "Company")

Publication of Annual Report & Accounts

Notice of AGM

The Character Group has today published its Report and Accounts for the year ended 31 August 2010. The Company has also today published a circular to Shareholders with an explanation of the resolutions to be proposed at the Annual General Meeting (the "AGM"). These proposals include:

● a renewal of the Company's authority to make market purchases of its issued shares; and

● the proposed enlargement of the capacity for the Company to grant options to employees of the Company and its subsidiaries, including the executive Directors;

and makes recommendations as to the action Shareholders should take.

The 2011 AGM is to be held at the offices of Duane Morris, 2nd Floor, 10 Chiswell Street, London, EC1Y 4UQ on Wednesday, 19 January 2011 at 11:00 a.m. The formal notice convening the meeting is set out at the end of the circular published today.

The Report and Accounts for the year ended 31 August 2010 and the circular to Shareholders containing the Notice of AGM are available to view and download in the investor relations section on the Company's website www.thecharacter.com.