Lease Renewal

Release date: 17th July 2006

Embargoed until: 07:00

                           CLS HOLDINGS PLC ("CLS")                            

                             SIGNS NEW LEASE WITH                              
                           BANQUE DE FRANCE IN PARIS                           

                                                                               
The Board of CLS is pleased to announce on behalf of its wholly owned
subsidiary Citadel Holdings plc that Banque de France has agreed to renew its
lease for a further nine year period, without a break, for 48, rue Croix des
Petits Champs in Paris.

Banque de France is the sole tenant of this 1,800 sq m (19,375 sq ft) building
located in the heart of Paris next to Place des Victoires. The new lease was
completed with effect from the 1st April 2006 at an annual rent of €866,029 (£
600,158) corresponding to €481 per sq m (£30.97 per sq ft) plus annual
indexation.

This building was purchased in 1998 for a price of €8,887,778 (£6,159,230) and
was valued at €12,560,000 (£8,704,080) as at 31st December 2005.

Executive Chairman of CLS, Sten Mortstedt, commented:

"I am pleased that Banque de France has renewed its lease on a long term basis.
We believe that this is, in part, a reflection of our efforts to maintain close
working relationships with our tenants for our mutual benefit."

                                   - ends -                                    

For further information, please contact:

Sten Mortstedt, Executive Chairman

Per Sjöberg, Chief Executive Officer

Philippe Alexis, Director French Operations

CLS Holdings plc

www.clsholdings.com

Tel. [phone]

www.citadelservices.com

Tel. [phone]

Adam Reynolds /Ben Simons

Hansard Communications

Tel. [phone]