Acquisition in Germany

Release date: 13th November 2006

Embargoed until: 07:00hrs

                           CLS HOLDINGS PLC ("CLS")                            

                      ANNOUNCES A NEW GERMAN ACQUISITION                       

The Board of CLS is pleased to announce that it has exchanged contracts for the
purchase of an office property in Berlin at a total consideration of €10.8
million (£7.25 million) inclusive of all costs.

The property known as Bismarckstrasse 105 and Leibnizstrasse 11-13 comprises
5,673 sq m (61,059 sq ft) of offices and storage space, together with 71 car
parking spaces. The building is currently 77% let to two tenants with the main
tenant occupying more than 50% of the building on a lease until June 2016. The
property was constructed in the 1960s and comprehensively refurbished in
2002-2003.

The purchase price will be paid in two tranches, with an initial payment of €
8,175,000 (£5,487,000) in December 2006 and the balance to be paid in December
2007.

The existing rental income is €557,281 (£374,000) and the estimated rental
value of the building once fully let is €794,000 (£532,000) which will generate
an initial return on equity of 16.1%, whilst the cash return on equity is
forecast at 12.1%.

The current value of the German portfolio of CLS, including properties for
which contracts have been exchanged but not yet completed, is €191.6 million (£
128.4 million).


Executive Chairman, Sten Mortstedt, commented:

"This investment offers good returns and a potential for value increase in a
strengthening Berlin market. CLS intends to make further selective acquisitions
in Germany, where current yields generate attractive returns on equity, with
potential upside in yield compression and rental growth."

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Per Sjöberg, Chief Executive Officer

Dan Bäverstam, Chief Financial Officer

CLS Holdings plc

www.clsholdings.com

Tel. [phone]

Ben Simons/Adam Reynolds

Hansard Group

www.hansardgroup.co.uk

Tel. [phone]