Interim Management Statement

Embargoed Release: 07:00hrs Friday 15 May 2009



                               CLS Holdings plc                                

                     ("CLS", the "Company" or the "Group")                     

   Interim Management Statement for the period 1 January 2009 to 14 May 2009   

The Company today announces its Interim Management Statement for the period 1
January 2009 to 14 May 2009.

HIGHLIGHTS

  * Robust first quarter performance
   
  * Lease renewals and extensions completed on 7,750 sq.m (83,500 sq.ft), on
    average above passing rent
   
  * New leases signed on approximately 7,000 sq.m (75,500 sq.ft)
   
  * Rent indexation in France for Q1 and Q2 adds £1.0 million to annualised
    income
   
  * Good cash collection from 1 January 2009 to date
   
  * Reduction in debt levels
   
  * £120 million in cash held at 31 March 2009
   
PROPERTY REVIEW

UK - General market conditions in the London area in Q1 2009 have shown falling
rents and increasing vacancy rates, with both letting and investment activity
falling further from the downturn in 2008. Occupational demand has remained
stable for the Group, although vacancy levels by rental income have risen
slightly from 4.4% at 31 December 2008 to 5.4% at today's date, principally
through one tenant vacating a proportion of space on a scheduled break option.

Cash collection remains a priority and 98% of the March rent roll was collected
within 14 days of the due date, consistent with the normal collection targets
of the Group.

Lease extensions, reviews and lettings have been agreed over approximately
2,750 sq.m (29,500 sq.ft) of space at an average 18% uplift during the period.

FRANCE - The French investment market continues to contract, with transactional
values at a 10 year low. Take up of vacant space is also 25% down on the same
quarter last year, and 9% down on the last quarter of 2008. Consequently, the
vacancy rate in France has risen from 4.2% by rental income at December 2008 to
6.2% at the date of this report.

Letting activity has been reasonable this quarter, with rent reviews and lease
extensions agreed on over 5,000 sq.m (54,000 sq.ft) of space, in addition to
indexation, which together have added €1.1 million to the annualised rent roll.
Furthermore, we have signed new leases over 4,250 sq m of space (45,750 sq.ft).
Quarterly rents in France were also collected within the ongoing target, with
over 93% received within 2 weeks of the quarter end date.

GERMANY - A similar set of circumstances exist in the German investment and
letting markets, with falling demand and lower activity, coupled with
increasing supply of new office space during 2009. Vacant space by rental
income has remained stable for the CLS German portfolio. Letting activity has
been slow, but we are pleased to report that 2,500 sq.m (27,000 sq.ft) has been
let since December 2008. Rents in Germany are billed and collected on a monthly
basis and to date we have received rents as normal.

The Group's developments at Bochum and Landshut are reaching the end of the
construction process, on time and on budget, with the initial space at Bochum
being handed over to the tenant during May 2009.

SWEDEN - The Swedish economy has also contracted in line with the Global
downturn. Investment volumes have fallen with the lack of liquidity, and rents
have stagnated in the major economic centres due to the declines in leasing
volumes.

We continue to work closely with the City of Vänersborg to meet their
requirements for additional office space at our Vänerparken complex. All rents
in Sweden for the first quarter were collected within 10 days of quarter end.

FINANCIAL UPDATE

Underlying profit for the first quarter has been strong with stable net rental
income, tightly controlled costs and reduced interest burden from debt on
floating rates.

Debt levels have fallen to approximately £586 million (31 December 2008 £602
million) principally from the strengthening of Sterling relative to the Euro
and SEK since December 2008, and scheduled loan amortisations and repayments.
Cash has decreased to approximately £120 million (31 December 2008 £195
million) at 31 March 2009. The largest item contributing to the reduction in
year end cash was the tender-offer completed in January 2009 for £48.0 million,
as detailed below.

PURCHASE OF OWN SHARES

As reported in our Annual Report and Accounts for the year ended 31 December
2008, the second tender offer made by way of a Circular dated 1 December 2008
for the purchase of 2 in every 9 shares at 350 pence per share was completed in
January 2009 and 13,721,215 shares were purchased and subsequently cancelled.
NAV per share following the second tender offer was 732.1 pence.

The Company has 48,024,256 shares in issue excluding 5,000,000 shares held as
Treasury shares.

BOARD CHANGES

It was announced in our Annual Report and Accounts for the year ended 31
December 2008 that the Board would seek to appoint a further independent
Non-Executive Director. The Board continues its search for such a suitable
candidate.

OUTLOOK

The Company is continuing to focus on its core property operations.

Executive Chairman of CLS, Sten Mortstedt, commented:

"Our focus on active management of the portfolio, combined with the high
proportion of government and high-quality corporate tenants has meant that
performance for the first quarter has been robust, in markets that remain
challenging. We are now beginning to see the benefit of falling interest rates
on the finance charge and the consequent improvement in underlying
profitability."



For further information, please contact:

Sten Mortstedt, Executive Chairman, CLS          [phone]

Holdings plc

Henry Klotz, Chief Executive Officer, CLS        [phone]

Holdings plc

Jonathan Gray, NCB Corporate Finance Limited     [phone]

Adam Reynolds, Hansard Group                     [phone]