Tender Offer

16 October 2007

  NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, INTO ANY  
 JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS 
                             OF SUCH JURISDICTION                              

                               CLS Holdings plc                                

                           ('CLS' or 'the Company')                            

        Proposed purchase of 2 in every 91 Ordinary Shares of 25p each         
           in the Company ('Ordinary Shares') at 600 pence per share           
               by way of a tender offer ('the Tender Offer') and               
                  Notice of an Extraordinary General Meeting.                  

On 17 September 2007, the board of CLS announced in its Interim Report for the
six month period ended 30 June 2007 that the Company intended to purchase 2 in
every 91 Ordinary Shares by way of a tender offer at 600p per share.

CLS is today posting a circular to shareholders in relation to the Tender Offer
on the terms set out above. The Tender Offer is being made in lieu of the
interim dividend for the six month period ended 30 June 2007. If the maximum
number of 1,548,395 Ordinary Shares under the Tender Offer is acquired, this
will result in an amount of £9,290,370 being paid by the Company to
participating shareholders.

The Tender Offer is open to all shareholders on the Company's register at 5.00
p.m. on 12 November 2007, who may participate by tendering all or a proportion
of their holdings of Ordinary Shares at the above price. No Ordinary Shares
will be purchased in relation to the Tender Offer unless the relevant
resolution to be proposed at the extraordinary general meeting of the Company
to be held on 13 November 2007 ('the EGM') is passed. The Tender Offer will be
void if less than 0.1 per cent. of the issued ordinary share capital of the
Company (excluding treasury shares) in aggregate is tendered. The Ordinary
Shares purchased under the Tender Offer will be cancelled.

Acceptances of the Tender Offer, which may only be made on the tender form
accompanying the circular to shareholders, should be returned as soon as
possible and, in any event, so as to be received by 5.00 p.m. on 12 November
2007, the latest time and date for receipt of the tender forms. Forms of proxy
for the EGM must be completed and returned so as to reach the Company's
registrars by not later than 2.00 p.m. on Sunday 11 November 2007.

Copies of the Tender Offer circular, tender form and proxy card will be
submitted to the UK Listing Authority, and will shortly be available for
inspection at the UK Listing Authority's Document Viewing Facility, which is
situated at:

Financial Services Authority

25 The North Colonnade

Canary Wharf

London E14 5HS

Tel No: (0)20 7066 1000

The Tender Offer circular is also available on the CLS website, 
www.clsholdings.com, in the Investor Relations section under Financial Reports
or the documents may be obtained from Sarah Ghinn, Deputy Company Secretary.

Enquiries:

CLS Holdings plc

Sarah Ghinn

Tel No: (0)20 7582 7766

NCB Corporate Finance Limited

Jonathan Gray

Tel No: (0)20 7071 5200

NCB Corporate Finance Limited is advising CLS in relation to the Tender Offer
and no one else and will not be responsible to anyone other than CLS for
providing the protections afforded to the customers of NCB Corporate Finance
Limited nor for providing any advice in relation to the Tender Offer.

This announcement, which has been issued by the Company and is the sole
responsibility of the Company, has been approved only for the purposes of
Section 21 of the Financial Services and Markets Act 2000 of the United Kingdom
by NCB Corporate Finance Limited, 51 Moorgate, London EC2R 6BH, a firm which is
authorised and regulated in the United Kingdom by the Financial Services
Authority.