CLI Cls Holdings Plc

    Embargoed: 0700hrs 17 March 2005

                           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 23 rue Raspail, Ivry-sur-Seine.

This freehold property is located in Ivry-sur-Seine, a suburb to the south of
Paris adjoining the left bank. The property was constructed in 1993 and
comprises 5,547 sq m of office space and 125 car parking spaces. The property
is fully let to three different tenants. The net rental income from the
property is Euro1,014,248 (�696,831) which equates to Euro182.85 per sq m (�11.81 per
sq ft) inclusive of car parking. The total purchase price for the property was
Euro11,605,000 (�8,065,475) inclusive of all costs, representing an initial yield
of 8.7%. Based on the completed loan facility of Euro9,500,000 (�6,602,500) with
an interest rate of 3.4% per annum on a floating rate basis, the return on
equity is 40.7% whilst the cash return on equity is 23.4%.

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

Executive Chairman, Sten Mortstedt, commented:

"I am very pleased with this further acquisition of a high quality office
building in the Ile de France area. The financial returns represented by this
investment are very attractive. We are continuing to seek further acquisitions
in France."

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Tom Thomson, Chief Executive & Vice Chairman

Dan B�verstam, Chief Financial Officer

CLS Holdings plc

Tel. +44 (0)20 7582 7766

www.clsholdings.com

Ben Simons

Hansard Communications

Tel. +44 (0)20 7245 1100



END

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