Character Regulatory News (CCT)

Date: 15 February 2011

The Character Group plc

(the 'Company')

designers, developers and international distributors of toys, games and gifts

Buy-back programme recommenced

At the Company's AGM held on 19 January 2011 shareholders renewed the authority for the Company to buy back up to 6,598,000 ordinary shares of 5 pence each ("Ordinary Shares") in the Company, approximately 26.7% of the outstanding Ordinary Shares (excluding Ordinary Shares held in treasury). After careful consideration, the Board has concluded that it would be appropriate to recommence its programme of share buy backs and, thereby, seek to further enhance earnings per share.

Following the purchase of 105,000 Ordinary Shares announced on 4 February 2011, the Company is seeking to purchase up to a further 895,000 Ordinary Shares in this stage of the programme to bring the total number of Ordinary Shares since the 2011 AGM to 1 million Ordinary Shares. The purchase of shares will be made by the Company through the market. As with previous buy-back programmes, some or all of the executive directors intend to support and participate in the Company's buy-back programme by selling, or their related parties selling, a proportion of their respective holdings of Ordinary Shares.

In furtherance of this programme, the Company advises that on Monday, 14 February 2011 it bought back for cancellation 8,250 Ordinary Shares in the market, at a price of 210 pence per share. This represents approximately 0.03 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 shares held in treasury) is 24,731,331 ("Revised Issued Voting Share Capital").

The Company holds 4,019,456 Ordinary Shares in treasury, representing approximately 16.25 per cent. of the Revised Issued Voting Share Capital, which do not carry voting rights.

The Company now has an unutilised capacity to buy back up to a further 6,484,750 Ordinary Shares under the authority granted at the Annual General Meeting on 19 January 2011.

The figure of 24,731,331 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 any change to their interest, in the Company under the Disclosure and Transparency Rules.