Acquisition(s)

Release date: 16 September 2004

Embargoed until: 07:00

                      CLS HOLDINGS PLC ('CLS') ANNOUNCES                       

                            ACQUISITIONS IN FRANCE                             

The Board of CLS is pleased to announce that Citadel Holdings plc, its wholly
owned subsidiary, has purchased three properties in the Paris area.

The properties are located in Levallois, Ivry and Villepinte, established
office areas in Parisian suburbs close to and with good communications to
central Paris and were constructed or substantially refurbished in 1993, 1999
and 1989 respectively. They comprise a total of 15,632 m² (168,263 sq ft) of
office space together with 324 car parking spaces and are let to a variety of
tenants. The vacancy rate at acquisition was 4.1%.

The rental income from the properties is €2,793,000 (£1,899,240) per annum,
which equates to €186 per m² (£11.75 per sq ft) and there is reversionary
potential.

The total purchase price for the properties was €30,200,000 (£20,536,000)
inclusive of all costs, representing an initial yield of 9.25%. The initial
return on equity is 20.2% whilst the initial cash return on equity is 13.9%.
The properties have a total of €21,330,000 (£14,504,400) of existing loans
secured against them equating to 70% of the purchase price. The average
interest rate across the loans is 4.7% of which €14,592,600 (£9,922,970) is
fixed at an average rate of 5.4% until 2006. It is anticipated that the loans
will be refinanced with the existing lenders to release equity and that the
interest expense will fall in 2006, which together would significantly enhance
the return on equity.

Executive Chairman, Sten Mortstedt, said:

'I am pleased that we are continuing to find good quality office properties
generating high initial returns with future possibilities of capital growth in
addition to enhanced returns through loan restructuring.'

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For further information please contact:

Sten Mortstedt, Executive Chairman

Dan Bäverstam, Chief Financial Officer

CLS Holdings plc

www.clsholdings.com Tel. [phone]