CLI Cls Holdings Plc

RNS Number:1640I
CLS Holdings PLC
30 March 2000


CLS SELLS FREEHOLD OF TWO NIGHTCLUBS
TO THE MEZZANINE GROUP PLC

The Board of CLS Holdings plc ("CLS") is pleased to announce that it has
agreed heads of terms with Mezzanine Group plc for the sale of its freehold
interest in the following two properties:

* "Mezzanine", Fox's Lane, Wolverhampton
* "Kartouche", Princes Street, Ipswich

The properties are currently leased from CLS by the purchasers who operate
them as night-clubs.

The agreed sale price is #4.0 million, representing a yield of 8.25%, of which
#2.5 million is payable in cash and #1.5 million will be settled by the issue
of ordinary shares of 5 pence each in Mezzanine Group plc at a price of 53
pence per share.

CLS originally purchased the properties in December 1998 for #1.925 million,
at an initial yield after costs of 16.6 per cent.  Both properties were
refurbished approximately ten years ago and comprise 4,090 sq. m. (44,027 sq.
ft.). They were held in the Group's balance sheet at a valuation of #3.04
million at 31 December 1999.

Executive Chairman, Sten Mortstedt, said:

"This transaction represents an excellent return on our original investment
and demonstrates our active approach to the management of our property
portfolio."


For further information, please contact:

Sten Mortstedt, Executive Chairman, CLS Holdings plc       020 7582 7766
Glyn Hirsch, Chief Executive, CLS Holdings plc             020 7582 7766
Ben Steele, Equity Marketing                               020 7242 8005

END

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