Safety Statement (16 Aug 07)

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 coverage relating to toy safety issues from both a manufacturing and end-product quality position. The Directors can assure both shareholders and consumers that the Group's business is not directly associated with any of the recently reported problems within our sector.

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