Transfer of Shares Held in Treasury

CLS Holdings plc (the `Company')                        

                      Transfer of shares held in treasury                      

The Company announces that on 13th September 2006 it transferred to
participants in the Company's Executive Share Option Schemes 125,000 Ordinary
shares at a price of 212.5 pence per share. The shares were all formerly held
as treasury shares.

Following the above transfer of shares out of treasury, the Company holds
7,477,168 Ordinary shares as treasury shares and the total number of Ordinary
shares in issue excluding shares held as treasury shares is 78,050,009.

Enquiries:

Sten Mortstedt, Executive Chairman - 020 7582 7766

Per Sjöberg, Chief Executive Officer - 020 7582 7766

Date: 14th September 2006