Acquisitions

Release date: 20 September 2006

Embargoed until: 07:00 hours

                           CLS HOLDINGS PLC ("CLS")                            

                    ANNOUNCES THREE NEW GERMAN ACQUISITIONS                    

The Board of CLS is pleased to announce the completion of the acquisition of a
portfolio of properties in Germany for a total consideration of €27,782,160 (£
18,740,074) inclusive of all costs. All three buildings are located in the
Munich area.

 1. The property known as Technocenter in Gräfelfing, Munich, was constructed
    in 2002 and comprises offices of 6,885 sq m (74,109 sq ft) and 125 parking
    spaces. The property is fully let to Dr. Hönle AG, a leading developer of
    UV technology, on a 6 year unexpired lease, with an annual rent of €
    1,002,616 (£676,301). The total acquisition cost for this investment was €
    14,640,920 (£9,875,831).
   
 2. The property known as Büropark am Messegelände is located in Landshut north
    of Munich. The property was constructed in 2002 and comprises offices of
    3,633 sq m (39,105 sq ft) and 45 car parking spaces. The property is fully
    let to EON, the international supplier of electricity and gas, generating a
    total annual rent of €444,778 (£300,019) guaranteed for a 6 year period.
    The total acquisition cost for this investment was €5,803,280 (£3,914,523)
    including all costs.
   
 3. The property known as the German headquarter of Trend Micro Inc. is located
    in Unterschleissheim, Munich. The property was constructed in 2001 and
    comprises offices and storage of 2,947 sq m (31,721 sq ft) of offices and
    storage and 46 car parking spaces. The property is fully let on a 5 year
    unexpired lease and generates an annual rental income of €500,139 (£
    337,362). The total acquisition cost was €7,337,960 (£4,949,720).
   
The initial yield of the portfolio after costs is 7.0 per cent and the return
on equity is 17.5 per cent based on a completed 7 year fixed interest rate loan
facility of €22,250,000 (£15,008,432).

Christian Holle of IAM has acted as consultant for CLS on all these
transactions.

Executive Chairman for CLS, Sten Mortstedt, commented:

"I am pleased with the acquisition of these three properties in Munich. The
Munich area is one of the most prosperous in Germany with an active and
expanding business community. The properties within this portfolio are fully
let new office buildings which generate attractive financial returns."

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Per Sjöberg, Chief Executive Officer

Dan Bäverstam, Chief Financial Officer

CLS Holdings plc

www.clsholdings.com Tel. [phone]