Acquisition and Lettings

CLS Holdings PLC
25 September 2001




                  CLS HOLDINGS plc ('CLS' or 'the Company')

                        ACQUISITIONS AND NEW LETTINGS


The Board of CLS is pleased to announce the acquisition of two further
properties in France, 96 rue Nationale and 105 avenue de la Republique, both
located in Lille and furthermore two lettings at the Company's properties in
Paris and in London.

The new acquisitions are located in prime office areas in Lille. The
properties are freehold and total 6,943 m(2) (74,602 sq ft) office space, 
75 m (2) (806 sq ft) storage space and 188 car parking spaces between them. The
properties are fully let to various tenants, with the exception of 264 m(2)
(2,837 sq ft) of office space for which the vendor, the subsidiary of a prime
European financial institution, has given a one year rent guarantee. The total
income for the properties is FRF 4,854,164 (£466,747) p.a. The total purchase
price for the properties was FRF 48,000,000 (£4,615,738) inclusive of costs,
representing an initial yield of 10.6%. The return on equity is 31.5% based on
a completed loan facility of FRF 36,000,000 (£3,460,500) at an interest rate
of 5.25% p.a. The funding facility, which is on a floating rate basis, hedged
with an interest rate cap, was drawn prior to recent interest rate reductions.


In addition to this acquisition the Board of CLS is pleased to announce one
new letting in the Paris area and one in London.


Unilever has taken a new institutional lease of 196 m(2) (2,100 sq ft) at a
rent of FRF 467,460 (£43,505) p.a., a rent of FRF 2,385 per m(2) (£21.34) in
Atria, Rueil-Malmaison. The space was previously let at FRF 1,236 per m(2).
This represents an annual increase of FRF 205,689 (£19,795), i.e. an increase
of 79% over the previous rent payable.


At Great West House, Brentford, Middlesex, Le Meridien Hotels (UK) Ltd,
guaranteed by Forte Ltd, has taken a new 10 years 8 months lease with a break
clause after 5 years and 8 months, for 5,477 sq ft and 9 car parking spaces at
£23 per sq ft, inclusive of car parking, paying a total of £125,971 p.a. The
premises were previously unlet.


Executive Chairman, Sten Mortstedt, said:


'I am pleased to announce these acquisitions which continue our strategy of
acquiring high yielding, well let office buildings in good office locations,
producing very satisfactory returns on the equity invested. In addition the
new lettings increase our rental income and thus capital value through active
asset management.'


                                    -ends-


For further information, please contact:


Sten Mortstedt, Executive Chairman

Glyn Hirsch, Chief Executive

CLS Holdings plc

www.clsholdings.com     Tel. [phone]


Adam Reynolds / Takki Sulaiman

Hansard Communications

www.hansardcommunications.com     Tel. [phone]