Sale of Two Properties

Release date:22 December 2005

Embargoed until: 07:00

                      CLS HOLDINGS PLC ANNOUNCES THE SALE                      
                         OF TWO CENTRAL LONDON OFFICE                          
                          BUILDINGS FOR £32.2 MILLION                          

CLS Holdings plc ('CLS') has today announced the sale of Carlow House, Carlow
Street, London NW1 and New London House, Drury Lane, London WC2 for a total
consideration of £32.2 million.

Carlow House in Camden provides 47,941 sq ft (4,454 sq m) of office
accommodation over four floors together with 13 apartments on the top floor.
The offices are let to Arup Partners Incorporated under a single lease expiring
in December 2014 at a rent of £1,383,485 per annum (£29.29 per sq ft/£315 per
sq m). The apartments were each sold off on 125 year leases in 1990.

A joint fund between AXA and IVG acquired the building for £18.2 million,
representing a net yield of 7.19%. CLS acquired the property in 1995 for £11.45
million. Savills and Lambert Smith Hampton represented CLS whilst King Sturge
acted for the Fund.

New London House in Drury Lane provides 23,328 sq ft (2,167 sq m) of office
accommodation together with 9,836 sq ft (914 sq m) of retail and leisure uses.
The offices are multi-let and the total income from the building is £950,641
per annum.

The property was acquired by the ING Covent Garden Limited Partnership, a joint
fund between ING and Rugby Estates Plc, for £14 million, representing a net
yield of 6.42%. CLS acquired the property in 1994 for £10.5 million. EA Shaw
acted for CLS in the sale.

Sten Mortstedt, Executive Chairman of CLS, said:

'We are pleased to announce the sale of these two mature investments, releasing
a profit of £1.87 million compared to our June 2005 valuations, and a cash
surplus of £12.2 million after repayment of the secured loans. Central London
office yields are at an all time low and we are looking to invest the proceeds
in new growth opportunities both in mainland Europe and the UK.'

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman
Tom Thomson, Chief Executive & Vice Chairman
Kevin Chapman, UK Property Director
CLS Holdings plc
www.clsholdings.com
Tel. [phone]

Adam Reynolds/Ben Simons
Hansard Communications
Tel. [phone]