Character Regulatory News (CCT)

28 September 2011

The Character Group plc

("the Company")

Transaction in Own Shares

As part of the Company's stated objective to enhance shareholder value, the Company advises that it has yesterday bought back for cancellation a further 30,000 ordinary shares of 5p each in the capital of the Company ("Ordinary Shares") in the market at a price of 170 pence per Ordinary Share. This represents approximately 0.13 per cent. of the current issued share capital of the Company (excluding shares held in treasury).

For the purposes of the Financial Services Authority's Disclosure and Transparency Rules, the total number of Ordinary Shares in issue as at the date of this notice (taking into account the Ordinary Shares purchased for cancellation by the Company announced above and excluding Ordinary Shares held in treasury) is 23,037,081 ("Revised Issued Voting Share Capital").

The Company has a total unutilised capacity to buy back up to a further 4,679,000 Ordinary Shares under the authority granted at the Annual General Meeting in January 2011.

The Company holds 4,019,456 Ordinary Shares in treasury, representing approximately 17.45 per cent. of the Revised Issued Voting Share Capital, which do not carry voting rights.

The figure of 23,037,081 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or change to their interest, in the Company under the Disclosure and Transparency Rules.