Re. Sale of Property

Release date: 02 February 2006

Embargoed until: 07:00hrs

                          CLS HOLDINGS PLC ANNOUNCES                           

                           SALE OF LÖVGÄRDET, SWEDEN                           

The Board of CLS Holdings plc ('CLS') is pleased to announce that it has sold
the whole of its mixed residential and commercial complex at Lövgärdet,
Gothenburg for a total price of SEK547 million (£40.5 million).

These properties were purchased by CLS for SEK440 million (£29.4 million) in
January 2002 and were valued at 30 June 2005 at SEK550 million (£38.9 million).

This transaction reflects the Group's intention to concentrate on office and
commercial investments.

Executive Chairman, Sten Mortstedt, commented:

'We have taken care to have chosen Stena Fastigheter AB who is a highly
professional landlord, as the purchaser. They own a substantial portfolio of
property in the area and we trust this will be of substantial lasting benefit
to the tenants of Lövgärdet.'

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Per Sjöberg, Chief Executive Officer

Dan Bäverstam

CLS Holdings plc

www.clsholdings.com

Tel. [phone]

Ben Simons

Hansard Communications

Tel. [phone]