Transaction in Own Shares

Date: Friday, 5 February 2010

The Character Group plc

('Company' or 'Group')

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

Transaction in Own Shares

As part of the Group's buy back programme announced on Wednesday 27 January 2010, the Company advises that on Thursday 04 February 2010 it bought back for cancellation 209,090 ordinary shares of the Company (as listed below) in the market, through Charles Stanley Securities This represents approximately 0.61 per cent. of the current issued share capital of the Company.

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) is 33,931,290 ("Revised Issued Voting Share Capital").

The Company holds 4,019,456 ordinary shares in treasury, representing approximately 11.85 per cent. of the Revised Issued Voting Share Capital, which do not carry voting rights.

The above figure of 33,931,290 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.

Since 27 January 2010, the Company has bought 580,191 ordinary shares (approximately 1.71 per cent. of the Revised Issued Voting Share Capital) for cancellation pursuant to the buy back programme at a cost of approximately £547,900 (excluding dealing costs and stamp duty).