French Property Acquisition

Release date: 8th May 2006

Embargoed until: 07:00

                      CLS HOLDINGS PLC ("CLS") ANNOUNCES                       

                         FURTHER ACQUISITION IN PARIS                          

The Board of CLS is pleased to announce that its wholly owned subsidiary
Citadel Holdings plc ("Citadel") has purchased a property located at 18 rue
Goubet, 75019 Paris, comprising 1,294 sq m (13,929 sq ft) of offices and 27
parking spaces.

The property was built in the 1970s and is located in the north-eastern part of
Paris. There are two underground stations within a 5-minute walk and the
property also benefits from direct access to the Paris ring road.

The property is substantially let to Selecta, the market leader for snacks/
drinks dispensing machines in public places, on a new 9-year lease with a
tenant break after 6 years. The net rental income at the time of completion was
€ 247,020 (£169,505) per annum and is expected to reach € 276,020 (£189,405)
per annum when fully let, vacant space is currently 129 sq m (1,389 sq ft).
This equates to a rental value of €199 per sq m (£12.69 per sq ft) inclusive of
car parking. The total purchase price, including all costs, was € 3,339,000 (£
2,291,223), representing a 7.4% yield. Based on a completed loan facility of €
2,700,000 (£1,852,741) at a 3.9% interest rate per annum on a floating rate
basis, the initial return on equity is 21.2%, whilst the initial cash return on
equity is 8.5%.

L'Etoile Properties advised CLS in respect of this acquisition.

Executive Chairman for CLS, Sten Mortstedt, commented:

"I am very pleased with this further acquisition in Paris. The property is let
to a prime tenant on a 9-year basis, ensuring secure income and an attractive
financial return."

                                    -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]

Adam Reynolds/Ben Simons

Hansard Communications

Tel. [phone]