Disposal

Release date: 26 June 2006

Embargoed until: 07:00

                      CLS HOLDINGS PLC ("CLS") ANNOUNCES                       

                  THE SALE OF SOLNA BUSINESS PARK, STOCKHOLM                   

The Board of CLS Holdings plc is pleased to announce that it has contracted to
sell its portfolio of six properties at Solna Business Park in Stockholm,
Sweden. The purchaser Fabege, a listed Swedish property investment group, has
agreed to acquire this portfolio by way of a corporate acquisition.

The transaction is based on an agreed aggregate value of the properties
amounting to SEK 3.575 billion (£267.0 million), less an estimated cost of SEK
350 million (£26.1 million) in respect of the completion of remaining
refurbishment works, tenant fit-out works and a provision for rent guarantees
although this may not be fully incurred. The sale reflects a yield to the
purchaser of just under 6 per cent. The settlement of the transaction will be
in cash.

The properties were held in the books of CLS at a valuation of SEK 2.953
billion (£215.5 million) at 31 December 2005 which contributed to a group NAV
of 607 pence per share. The annual net rental income generated by the Solna
portfolio is SEK 211 million (£15.8 million).

The portfolio of properties was purchased between 1999 and 2005 at a total cost
of SEK 579 million (£43.2 million). The properties had been constructed during
the 1960s and were primarily being used for mixed light industrial purposes.

Since buying the properties CLS has executed a SEK 1.58 billion (£118.0
million) extension and refurbishment programme that has transformed this local
area of Solna by creating an award winning, environmentally friendly, modern
office park that includes a business hotel, restaurant, conference centre, a
large well equipped gym and health spa, ICA Maxi hypermarket and other retail
outlets. After seven years of ownership, the total investment by CLS is SEK 2.5
billion (£186.7 million), inclusive of the agreed future refurbishment works
and rental guarantees mentioned above.

In all, the net lettable area now comprises 137,480 sq m (1.48 million sq ft)
with leases having a weighted average duration of 7 years.

The unique architectural designs of the development, coupled with the flexible
utilisation of space has attracted a large number of blue chip and government
tenants that include ICA, Coop, EDB, Green Cargo, IFS, Unilever, Banverket and
Sundyberg local education department.

After repayment of the financing secured on the properties, the sale will
realise surplus cash of approximately SEK 1.54 billion (£115.0 million) on
projected completion at the end of August 2006. The resources generated from
this sale will be held by the company for utilisation at the appropriate time.

CLS continues to hold its Swedish investment in Vänerparken, near Gothenburg,
comprising health care, government offices, leisure and a university complex.

About Fabege

The purchaser is Fabege, whose assets amount to SEK 25 billion (£1.87 billion)
prior to this purchase. They already own three other properties within Solna
Business Park and after the purchase Fabege will own nearly 500,000 sq m (5.38
million sq ft) of property within the municipality of Solna. They are actively
developing other projects in Solna in close liaison with the municipality.

Catella Corporate Finance AB has acted as adviser to CLS.

Executive Chairman for CLS, Sten Mortstedt, commented:

"Our extensive redevelopment of Solna Business Park has regenerated the area
and its success in attracting high quality, substantial tenants has validated
our concept of creating an integrated business, retail and leisure destination.
Furthermore I am convinced that Fabege is the best placed purchaser to continue
with the management and development of Solna Business Park.

This sale will crystallise added value in a tax efficient manner, generating
substantial cash resources for CLS and I estimate that it will have a positive
impact on our NAV of approximately 19 pence per share."

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Per Sjöberg, Chief Executive Officer

CLS Holdings plc

www.clsholdings.com

Tel. [phone]

Henry Klotz, Managing Director

Solna Business Park AB

www.solnabusinesspark.se

Tel. [phone]

Mobile [phone]