Statement Re Joint Venture Company Dispute

Release date: 15 November 2005

Embargoed until: 07:00

                               CLS HOLDINGS PLC                                

                                    ('CLS')                                    

                       RE. JOINT VENTURE COMPANY DISPUTE                       

CLS wishes to clarify the situation concerning one of its group companies, New
Malden House Limited, which is a shareholder in Teighmore Limited
('Teighmore'), the Jersey-based company which owns London Bridge Tower.

An issue has arisen regarding the validity of the sale of some of the
non-voting shares in Teighmore which constitute a small part of the issued
share capital.

CLS' share of the value of London Bridge Tower is £18.3 million compared to a
total CLS property portfolio valuation in excess of £1 billion.

This issue has no bearing whatsoever on the development, which is progressing
most encouragingly. Discussions are presently in hand with a number of
interested tenants and funders, whilst preparation of the construction
programme is in its final stages.

                                    -ends-                                     

Contacts:

Sten Mortstedt, Executive Chairman

Tom Thomson, Chief Executive & Vice Chairman

CLS Holdings plc

www.clsholdings.com

Tel. [phone]

Adam Reynolds

Hansard Communications

Tel. [phone]