Character Regulatory News (CCT)

16 Aug 2007 14:12

Character Group PLC16 August 2007 Issued on behalf of The Character Group plc, by Citigate Dewe Rogerson,BirminghamDate: Thursday, 16 August 2007 Immediate Release The Character Group plc ("Group" or "Character " or the "Company") Statement regarding the Group's position in relation to Quality and Safety of its product portfolio Over the last week, there has been a substantial amount of media coveragerelating to toy safety issues from both a manufacturing and end-product qualityposition. The Directors can assure both shareholders and consumers that theGroup's business is not directly associated with any of the recently reportedproblems within our sector. The Directors of Character feel it would be beneficial to explain the Group'sposition on this very important topic. Following the recall of certain toy products by Mattel this week, the UK's toyindustry trade body, The British Toy and Hobby Association (BTHA) has issued astatement on 14 August 2007 (http://www.btha.co.uk/press/BTHA-statement-on-toys-from-China.php), which states that "the safety ofchildren is the toy industry's top priority". This view is shared by all theleading players in our industry. The Board of Character can confirm that the Company takes all reasonable stepsto ensure that its products are safe, and we unequivocally support the view ofthe BTHA that children's safety is priority. Around 70% of the Group's product portfolio is designed and developed in-house.Whilst manufacturing is outsourced, this is closely monitored to ensure thatquality remains high and adheres to the strictest guidelines that are requiredto meet both the Group's and our customers' criteria for manufacturing andquality. To that end Character has continually, over a number of years, initiated andfurther developed a stringent quality control regime which is regularly reviewedand updated. This includes but is not limited to: • Testing all products through independent laboratories to ensure they comply with all EU toy standards, including EN71-3 which prohibits the use of lead in toys. • Independent assessment of all factories by experienced auditors prior to order placement to ascertain each factory's competency in relation to hazardous substance control. • Assessment of design risk undertaken through the product development process to ensure that possible production problem areas are eliminated at the design stage. • Continuous programme by senior management to review both internal and external systems and procedures to ensure steady improvement. continued... -2- In addition to the above, the Group is working towards full implementation ofthe strategy of ensuring that all of the Group's suppliers are required to beregistered and compliant with the ICTI CARE process. The CARE process ("Caring, Awareness, Responsible, Ethical") is theInternational Council of Toy Industries' (ICTI) program to promote ethicalmanufacturing, in the form of fair labour treatment, as well as employee healthand safety in the global toy industry supply chain with its initial focus beingChina, where around 80% of the world's toy volume is currently manufactured. TheICTI CARE project objective is to provide a single, fair, thorough andconsistent programme that will monitor toy factories to ensure compliance withits Code of Business Practices (www.icti-care.org). The Group will continue to focus on delivering toys and related products thatnot only meet the demand of the consumer but also have been manufactured orsourced to the highest standards and therefore adhering to the Group's and UKand international bodies' strict guidelines. Enquiries:Richard King, Chairman Fiona Tooley, DirectorKiran Shah, Group Finance Keith Gabriel, Senior Philip DaviesDirector & Joint MD Account ManagerThe Character Group plc Citigate Dewe Rogerson Charles Stanley Securities Nominated AdviserTel: +44 (0) 20 8949 5898 Tel: +44 (0) 121 455 8370 Tel: +44 (0) 20 714 9600Mobile: +44 (0) 7836 250150 (RK) Mobile: +44 (0) 7785 703523 (FMT)www.thecharacter.com Notes to Editors: The Character Group Plc designs, develops, markets and distributes toys andgames, principally to the UK market although it has an increasing exposure tothe international market. Revenues are generated from a mix of product ranges with over 70% designed anddeveloped in-house either under the Group's own brand or under licenses with thebalance being derived from 3rd party distribution. Notable product lines withinthe Character portfolio are Doctor Who, Scooby Doo, Disney Princess, Peppa Pig,Barney, Gr8 Gear, Wow Wee Robotics (including Robosapien). For a morecomprehensive view of the product portfolio please refer towww.Character-online.com This information is provided by RNS The company news service from the London Stock Exchange