New French Acquisition

6 January 2010


                            CLS HOLDINGS PLC (CLS)                             

                      ANNOUNCES A NEW FRENCH ACQUISITION                       

The Board of CLS is pleased to announce that its wholly owned subsidiary,
Citadel Holdings Plc, has purchased 7 rue Eugène et Armand Peugeot, 92500 Rueil
Malmaison, a 7,357 sq m (79,161 sq.ft) office building with 146 parking spaces.
The consideration inclusive of all costs was €33 million (£29.8 million).

The property, built in 1988, was partly refurbished in 2005/06, and
substantially refurbished in 2009. It is located to the west of Paris, in
Rueil-Sur-Seine, an attractive and well established office area with excellent
transport links both by road and rail, including a mainline station situated
adjacent to the property.

The building is multi-let with existing rental income of €2.7 million (£2.4
million) yielding 8.3%, and will provide a return on equity of 16.1%. The cash
return on equity of 10.2% is based on a newly completed ten-year loan facility
with Société Générale of €21.7 million (£19.6 million). 95% of the cash flow is
secured for three years from large corporate tenants, and 43% is secured over
six years.

Executive Chairman of CLS, Sten Mortstedt, commented:

"We are very pleased to have acquired such a high quality office building in
Paris offering attractive returns in line with our investment criteria. It
provides further evidence of CLS' ability to source and acquire attractive
investments in France."

For further information, please contact:

Sten Mortstedt, Executive Chairman

Henry Klotz, Chief Executive Officer

CLS Holdings plc

www.clsholdings.com

Tel. [phone]