Acquisition(s)

Embargoed: 0700hrs 22 January 2004

                               CLS HOLDINGS PLC                                

                                    ('CLS')                                    

                            EXPANDS INTO LUXEMBOURG                            

CLS is pleased to announce that it has acquired a freehold property in
Luxembourg wholly let to the Luxembourg Government.

CLS paid €9,718,000 (£6,700,000) including costs at an auction for the freehold
of Rue Eugene Ruppert 16 which is occupied by the Luxembourg Ministry of
Environment. The net annual rental income of the property is €1,112,826 (£
767,470) subject to annual indexation reflecting an initial yield of 11.4%. The
building was completed in 1991 and is let to the Luxembourg state for a term
expiring in December 2008.

The property which extends to 4,150 sq m (44,670 sq ft) is located in Cloche
d'Or, an expanding and sought after office location to the south of Luxembourg
city and adjoining the motorway to Germany, France and Belgium. The Luxembourg
market has benefited from low vacancy levels and competitive yields during the
last decade and CLS sees the acquisition as a natural expansion from its
significant presence in the French market.

The acquisition has been financed with a loan from KBC Bank N.V. in Brussels,
creating a return on equity in excess of 30%.

Executive Chairman, Sten Mortstedt, said:

'I am pleased that we have secured this well located property let to such an
excellent tenant at a very attractive return.'

                                    -Ends-                                     

For further information please contact,

Sten Mortstedt, Executive Chairman

Tom Thomson, Vice Chairman & Acting Chief Executive

CLS Holdings plc

Tel. [phone]

www.clsholdings.com

Adam Reynolds/Ben Simons

Hansard Communications

Tel. [phone]