New Letting

CLS Holdings PLC
9 July 2001


Release date:        9th July 2001
Embargoed until:    07:00


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

                   ANNOUNCES LETTINGS IN FRENCH PROPERTIES


The Board of CLS is pleased to announce new lettings at two of the Company's
French properties located to the west of Paris.

GEFCO, a subsidiary of PSA Peugeot Citroen, has taken a new institutional
lease of 1,175 m(2) (12,629 sq ft) at a total of FRF 2,850 per m(2) (£24.35
per sq ft), FRF 3,348,750 (£307,225) p.a. at 56 Boulevard de la Mission
Marchand, Courbevoie. The space was previously let at FRF 1,338 per m(2). This
represents an annual increase of FRF 1,776,000 (£162,935), i.e. an increase of
113% over the previous rent payable.

At 53/55 rue Capitaine Guynemer an existing tenant, TEVA Pharma, a Nasdaq
quoted company with a market capitalisation in excess of USD 5 billion has
taken an additional institutional lease for 214 m(2) (2,300 sq ft), paying a
rent of FRF 3,000 per m(2) (£25.64 per sq ft). The premises were previously
let at FRF 1,156 per m(2). This increase of FRF 394,600 (£36,200) p.a.
represents an increase of 162% over the previous rent payable.

CLS Holdings plc's Executive Chairman, Sten Mortstedt, said:

'These lettings demonstrate the large increases in rents obtained in Paris for
new lettings over the last 2 years for good quality buildings. I am very
pleased that through active management of our French properties we have been
able to increase the rental income to today's market level and hereby realised
a small part of the reversionary potential of our Parisian portfolio.'


                                    -ends-


For further information, please contact:



Sten Mortstedt, Executive Chairman, CLS Holdings plc   Tel. [phone]

Glyn Hirsch, Chief Executive, CLS Holdings plc         Tel. [phone]