Re. Acquisition and sale

Embargoed: Tuesday 4 October 2005, 07:00hrs

                               CLS HOLDINGS PLC                                

                                    ('CLS')                                    

                         ACQUISITION OF ONE PROPERTY &                         

                       SALE OF TWO PROPERTIES IN FRANCE                        

The Board of CLS is pleased to announce that its wholly owned subsidiary
Citadel Holdings plc ('Citadel') has acquired 3 Allée du 1er Mai,
Croissy-Beaubourg.

This freehold property is located in Croissy-Beaubourg, a suburb to the east of
Paris. The property was constructed in 1985 with extensions completed in 1991
and 1996 and comprises 3,301 sq m (35,472 sq ft) of office space and 100 car
parking spaces. The property is fully let to Polymerland France, a company
within the General Electric Group, on a new 9 year lease without breaks. The
net rental income is €400,000 (£270,000) per annum, which equates to €121.18
per sq m (£7.01 per sq ft) inclusive of car parking. The total purchase price
for the property was €5,050,000 (£3,408,750) inclusive of all costs
representing an initial yield of 7.9%. Based on a credit approved loan facility
of €3,900,000 (£2,700,000) with an interest rate of 3.15% per annum on a
floating rate basis, the return on equity is 29.1% whilst the cash return on
equity is 18.9%.

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

In addition, Citadel has sold two properties in France. Rue de l'Abbé Hazard,
located in Nanterre, a Paris suburb, was sold for €788,500 (£532,237) being
valued at €550,000 (£371,250) as at 30 June 2005. The property was purchased in
2001 for €552,000 (£372,600). Rue Lord Byron, Paris 8th was sold for €4,222,500
(£2,851,875) (valued as of 30 June 2005 at €4,220,000 (£2,849,107)) and
purchased in 1999 for €3,290,000 (£2,220,750).

Executive Chairman, Sten Mortstedt, commented:

'I am very pleased with this further acquisition in France. The property is let
to a prime tenant on a long-term basis, ensuring secure income and an
attractive financial return. In addition, we are happy to have sold two
properties where we could see no further growth at a good profit and for prices
in excess of their June valuations.'

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Dan Bäverstam, Chief Financial Officer

CLS Holdings plc

Tel. [phone]

www.clsholdings.com

Ben Simons

Hansard Communications

Tel. [phone]