Character Group PLC - Update re: Bindeez Products

RNS Number:3431H

Character Group PLC

09 November 2007

Issued on behalf of The Character Group plc

Date: Friday, 9 November 2007

Embargoed: 7.00am

The Character Group plc

Update in relation to Bindeez products

The Board of The Character Group plc ('Group' or 'Company') wishes to update

shareholders in relation to Bindeez branded products distributed by the Group in

UK and Eire on behalf of the manufacturers, Moose Enterprise Pty, Australia

('Moose').

Following a number of reported cases of illness in Australia, the Group

announced on Wednesday (7 November 2007) that it had recommended to its

customers to withdraw from sale all Bindeez products whilst independent test

laboratory and EU toxicologist tests were being undertaken.

Whilst there have been no cases of illness reported in the UK and Eire, we have

been made aware of a further case reported in the USA in relation to this

product range.

Although at this stage the Group is still awaiting the test results, in light of

this additional reported incident in the USA and in an effort to avoid any

potential risk to children as well as prevent confusion or concern with UK and

Eire consumers, the Directors have decided, as a further safety measure,

voluntarily to recall from retail and consumers all Bindeez Products distributed

by the Group.

The Group takes all reasonable measures to ensure that all its products are safe

and that children's safety is the priority. In this particular case, it appears

that an unapproved formulation may have been used in the manufacturing process

and this is now being rectified. In addition to ensuring the use only of

approved bead formulation, Bitrex(R) has been added to the manufacturing process

of all replacement products. This safe solution leaves a bitter taste on oral

contact so as to dissuade children from placing the product in the mouth.

The Directors anticipate that new supplies, which conform to the correct

specification, will commence to be shipped from the first week of December 2007.

Due to the interruption to supplies, it is inevitable that the Group will lose

some sales at this busy time of the year. Despite this, the Directors expect the

Bindeez brand to grow during the current financial year as a whole.

The Directors will continue to keep shareholders updated as appropriate.

Details of the Voluntary Recall Notice will appear on the Group's website

www.character-online.co.uk.

Enquiries:

Richard King, Chairman Fiona Tooley, Director

Kiran Shah, Group Finance Director & Joint MD Keith Gabriel, Senior Account Manager

The Character Group plc Citigate Dewe Rogerson

Tel: +44 (0) 20 8949 5898 Tel: +44 (0) 121 455 8370

Mobile: +44 (0) 7836 250150 (RK) Mobile: +44 (0) 7785 703523 (FMT)

Mobile: +44 (0) 7956 278522 (KS)

www.thecharacter.com

www.character-online.co.uk

Richard Thompson

Philip Davies

Charles Stanley Securities

Nominated Advisor

Tel: +44 (0) 20 7149 6000

This information is provided by RNS

The company news service from the London Stock Exchange

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