Acquisition of property

CLS Holdings PLC
31 October 2001



                           CLS HOLDINGS PLC ('CLS')

                    ACQUISITION AND NEW LETTINGS IN FRANCE


The Board of CLS is pleased to announce that its fully owned subsidiary
Citadel Holdings plc has acquired a further property in France at 2, rue
Pierre Timbaud, 92230 Gennevilliers and has completed two lettings at two
properties in Paris.


The new acquisition is located in the office area of Gennevilliers, a suburb
just north west of Paris, close to road and rail communications to central
Paris. The freehold property totals 3,170 m(2) (34,062 sq ft) of office space
together with 107 car parking spaces and is fully let to SFIG, a subsidiary of
Gaz de France. The rental income from the property is FRF 3,004,914 (£288,182)
p.a., which equates to FRF 948 per m(2) (£8.40 per sq ft) inclusive of car
parking. The total purchase price for the property was FRF 32,700,000 (£
3,140,286) inclusive of costs, representing an initial yield of 9.2%. The
return on equity is 24.6% whilst the cash return on equity is 16.9%, based on
a completed loan facility of FRF 23,250,000 (£2,214,286) at an interest rate
of 4.5% p.a. on a floating rate basis, hedged with an interest rate cap.


In addition to this acquisition the Board of CLS is pleased to announce two
new lettings in the Paris area. At Sigma, Garenne Colombes, CEPME has taken
1,180 m(2) (12,670 sq ft) on a new institutional 6/9 lease, at a rent of FRF
2,370,040 (£225,718) p.a., which equates to FRF 1,840 per m(2) (£17.20 per sq
ft) for the office space, representing an increase of 75% over the previous
rent paid.


At rue Bellevue, Boulogne, Mederic Insurance has taken a new institutional 6/9
lease of 265 m(2) (2,850 sq ft) at a rent of FRF 678,000 (£64,570) p.a., which
is FRF 2,400 per m(2) (£21.30 per sq ft) for the office space, representing an
increase of 53% over the previous rent paid.


Executive Chairman, Sten Mortstedt, said:


'I am very pleased with the further acquisition of a high quality, well let
office building in the Paris area. In addition I am pleased that through
active asset management we are significantly increasing the current rental
income generated from our properties with new long-term leases with prime
tenants.'



                                    -ends-



For further information, please contact:


Sten Mortstedt, Executive Chairman

Tom Thomson, Vice Chairman & Acting Chief Executive

CLS Holdings plc

www.clsholdings.com               Tel. [phone]


Adam Reynolds / Takki Sulaiman

Hansard Communications

www.hansardcommunications.com     Tel. [phone]