Sale of Properties

Immediate date: Monday 18 August 2008

                           CLS HOLDINGS PLC ("CLS")                            

                      SALE OF THREE PROPERTIES IN FRANCE                       

The Board of CLS is pleased to announce that its wholly owned subsidiary
Citadel Holdings plc ("Citadel") has completed the sale of three properties in
France, located at 1, 15 and 21 Avenue Edouard Belin, Rueil Malmaison in a
western suburb of Paris.

The corporate structures owning the properties listed below have been sold to
SGAM, an asset management company, part of the Société Générale group, for a
net consideration after costs and taxes of €21.9 million. The purchaser has
also funded the repayment of the loans secured on these properties amounting to
€57.8 million. The effective consideration for the sale after providing for all
costs was therefore €79.7 million.

At 30 June 2008, the properties were valued in CLS' accounts at €87.6 million.
In addition, deferred tax previously provided in CLS' accounts for these
properties of €21.1 million will now be released.

The properties comprising 17,618 sq m (189,639 sq ft) in total were purchased
by companies in the Citadel Group in 1999 for a total of €48.5 million. The
annual net rental income generated by these properties in 2007 was €6.1 million
from 20 current tenants and an initial yield of 7.01%.

CLS intends to hold the cash proceeds of all of these sales for the short to
medium term.

Executive Chairman of CLS, Sten Mortstedt, commented:

"We are happy to have sold these assets at an attractive price. The properties
have yielded good returns over our period of ownership and these sales
strengthen our financial position."

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Henry Klotz, Chief Executive Officer

CLS Holdings plc

Tel. [phone]

www.clsholdings.com