Lease of Infinity House warehouse&Grant of option

London: Tuesday, 7 April 2026: the Board of Character (AIM: CCT) is pleased to report on developments relating to the Group's warehouse and office complex at Infinity House, Townley Street, Middleton, Lancashire ("Infinity House"). Following the Board's strategic decision to continue to base the Group's UK operations at its Lees Brook Mill property in Oldham, Lancashire rather than relocating to Infinity House, which is currently surplus to the Group's needs, endeavours have been made to market the premises for either sale or rent. These marketing efforts have resulted today in the following transactions being entered into by Q-Stat Limited (Character's UK-based, wholly-owned, property investment subsidiary), which holds the title to Infinity House on behalf of the Group:

• an agreement for the grant of, and simultaneous grant of, a lease of the warehouse premises at Infinity House (the "Lease"). The agreement and the Lease have been entered into with Comfy Quilts Limited ("CQ"), a substantial, privately owned, trading company. The Lease is of the 138,084 sq. ft. warehouse premises and associated curtilage and facilities at Infinity House but excludes the office complex and associated parking area at the front of the premises.

The Lease is for an initial term of five years, on a full repairing and insuring basis, and is contracted out of the Landlord and Tenant Act 1954 Part II tenant protections. The rent payable under the Lease is c.£773,000 (£5.60 per sq. ft.) per annum. The Lease entitles CQ to exercise a right to bring the Lease to an end on the third anniversary of the date of grant of the Lease by giving not less than six months' notice expiring on that anniversary. CQ is entitled to a rent-free period of three months; and

- the grant of an option to acquire the entire Infinity House property, including the warehouse facilities and the office complex (c. 19,408 sq. ft.) all on an overall site of c. 7.59 acres (the "Option"). The Option has been granted to Robertsbridge Property Co Limited ("RPC"), a company connected with CQ, and is exercisable until 30 June 2026. A nominal sum of £1 was paid upon grant of the Option. If the Option is exercised, RPC will have twenty business days within which to complete the purchase. If the Option is not exercised in accordance with its terms, it will lapse at midnight on 30 June 2026. The agreed price for Infinity House under the Option is £9.8 million, payable in cash, of which 10% is payable on exercise of the Option and the balance payable on completion of the purchase.

The Board has not yet made a determination as to the application of the proceeds of sale if the Option is exercised. Shareholders will be updated in due course regarding the exercise or lapse of the Option.