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The “exception” is one of the three character-types Freud (1916) identified in a now-classic early contribution to psychoanalytic character studies. The term has since been applied to various clinical entities with different theoretical implications. This paper explores and amplifies the concept of the “exception” and the “exception” as a special category of varied privileged characters. The paper re-examines Freud's and later formulations in the context of contemporary psychoanalytic thought.