Acquisition

CLS Holdings PLC
29 October 2002

Release date:    29th October 2002

Embargoed until: 07:00


                 CLS HOLDINGS PLC ('CLS') - ACQUISITION IN FRANCE


The Board of CLS is pleased to announce that its wholly owned subsidiary Citadel
Holdings plc has acquired a further property in France, Villa Angelica, 58-60
avenue du Generale Leclerc,  92430 Bourg La Reine.


The freehold property is located in Bourg La Reine, a suburb in the south-west
of Paris with excellent communications to central Paris. The property is new,
finished to a high specification and has been developed jointly by Sogeprom and
Franco Suisse. It comprises 3,372 sq m (36,232 sq ft) of office space and 390 sq
m (4,190 sq ft) of retail space together with 81 car parking spaces.  The
property is fully let with 90% of the premises let to the insurance company
Atlantic SFDT and the property management company Efimo on 9-year leases without
breaks and the remaining space is let to Credit Lyonnais on a standard 3/6/9
year lease. The net rental income from the property is €814,272 (£512,991) per
annum, which equates to €216.45 per sq m (£12.69 per sq ft) inclusive of car
parking. The total purchase price for the property was €9,400,000 (£5,922,000)
inclusive of all costs, representing an initial yield of 8.65%.  The return on
equity is 32% whilst the cash return on equity is 22% based on a completed loan
facility of €7,440,000 (£4,687,200) at an interest rate of 4.4% per annum on a
floating rate basis, hedged with an interest rate cap for 5 years.


L'Etoile Properties advised CLS in respect of this acquisition.


Executive Chairman, Sten Mortstedt, said:


'I am pleased with this acquisition of a newly constructed office building in
the Paris area. The property is exceptionally well let, with long-term leases to
strong tenants. The acquisition of Villa Angelica demonstrates that we are able
to continue to find attractive high return, good quality investments in France.'


                                     -ends-


For further information, please contact:

Sten Mortstedt, Executive Chairman

Tom Thomson, Vice Chairman & Acting Chief Executive

CLS Holdings plc                        Tel. [phone]

www.clsholdings.com


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