Sale of Properties

Immediate Release: Friday 27th June 2008

                           CLS HOLDINGS PLC ("CLS")                            

            ANNOUNCES THE SALE OF ONE LEICESTER SQUARE, LONDON WC2             

                   AND COVENTRY HOUSE, LONDON SW1 FOR £57.2m                   

 

The Board of CLS is pleased to announce the sale of One Leicester Square and
Coventry House, Haymarket to Aziz Family Trust Companies, represented by
Criterion Capital, for a total price of £57.2m.


One Leicester Square is a nine storey leisure and retail building occupying a
prominent position on the north side of the square. It comprises 37,920 sq ft
(3,523 sq m) and is let to Nickelodeon Huggins, Planright Limited, Sound Too
Limited, Crest Trading and Empire Cinema. The property produces an income of £
1.7m per annum and was sold for £33.7m, representing a net initial yield of
4.8%.


Coventry House, Haymarket, overlooks Piccadilly Circus and provides 18
apartments (14 of which have been sold on long leases) above a restaurant. At
roof level is an electronic screen which is let on a revenue sharing basis to
Clear Channel. The current income is £1.5m per annum. The property was sold for
£23.5m, representing a net initial yield of 5.9%.


Overall, these sales represent a premium of £4.4m or 8.4% ahead of the December
2007 valuations. Kingly Partners and Colliers acted on behalf of CLS in respect
of the sale of One Leicester Square.


We intend to hold the cash proceeds from these sales for the short to medium
term.

 
Executive Chairman of CLS, Sten Mortstedt commented:

 
"We are pleased to have achieved sales of these two Central London properties.
Our core investments remain principally in offices and having carried out
extensive works and re-lettings at both properties, we felt it was timely to
sell."

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For further information, please contact:

Sten Mortstedt, Executive Chairman

Henry Klotz, Chief Executive Officer

CLS Holdings plc

Tel. [phone]

www.clsholdings.com