Re Contract

CLS Holdings PLC
22 January 2003


Embargoed: 0700hrs, 22 January 2003


                            CLS HOLDINGS PLC ('CLS')
                              NEW TRANSACTIONS AT
                   SPRING GARDENS BUSINESS PARK, LONDON, SE11


The Board of CLS is pleased to announce that the Home Office has taken an
assignment of the existing lease of Unit 1, Spring Gardens comprising 45,594 sq
ft (4,236 sq m) from the previous tenants. This lease expires in June 2015 and
the current passing rent is £1,392,573 per annum with rent reviews due in June
2005 and 2010.

In addition, CLS has completed the construction of new offices comprising 11,495
sq ft (1,068 sq m) linking two of the existing buildings at Spring Gardens
already occupied by the Home Office. A new lease has been completed in favour of
the Home Office for these offices for a term expiring in December 2010 at a rent
of £367,840 per annum with a rent review due in March 2007.

In addition, the existing leases in favour of the Home Office of Units 2, 4, and
5 have been extended to December 2010 (from March 2007) with rent reviews also
due in March 2007.

The combined effect of these transactions is that the UK Government is now
responsible for 100% of the rent at Spring Gardens Business Park totalling
£5,157,038 per annum, 54.6% of which is secured until 2010, 34% until 2015, and
11.4% until 2017.


                                     -ends-



For further information, please contact:

Sten Mortstedt, Executive Chairman                    Tel. [phone]
Tom Thomson, Vice Chairman & Acting Chief Executive
CLS Holdings plc
www.clsholdings.com

Ben Simons/Takki Sulaiman                             Tel. [phone]
Hansard Communications                                Tel. [phone]



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