CLI Cls Holdings Plc

    Embargoed: Tuesday 4 October 2005, 07:00hrs

                               CLS HOLDINGS PLC                                

                                    ("CLS")                                    

                         ACQUISITION OF ONE PROPERTY &                         

                       SALE OF TWO PROPERTIES IN FRANCE                        

The Board of CLS is pleased to announce that its wholly owned subsidiary
Citadel Holdings plc ("Citadel") has acquired 3 All�e du 1er Mai,
Croissy-Beaubourg.

This freehold property is located in Croissy-Beaubourg, a suburb to the east of
Paris. The property was constructed in 1985 with extensions completed in 1991
and 1996 and comprises 3,301 sq m (35,472 sq ft) of office space and 100 car
parking spaces. The property is fully let to Polymerland France, a company
within the General Electric Group, on a new 9 year lease without breaks. The
net rental income is Euro400,000 (�270,000) per annum, which equates to Euro121.18
per sq m (�7.01 per sq ft) inclusive of car parking. The total purchase price
for the property was Euro5,050,000 (�3,408,750) inclusive of all costs
representing an initial yield of 7.9%. Based on a credit approved loan facility
of Euro3,900,000 (�2,700,000) with an interest rate of 3.15% per annum on a
floating rate basis, the return on equity is 29.1% whilst the cash return on
equity is 18.9%.

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

In addition, Citadel has sold two properties in France. Rue de l'Abb� Hazard,
located in Nanterre, a Paris suburb, was sold for Euro788,500 (�532,237) being
valued at Euro550,000 (�371,250) as at 30 June 2005. The property was purchased in
2001 for Euro552,000 (�372,600). Rue Lord Byron, Paris 8th was sold for Euro4,222,500
(�2,851,875) (valued as of 30 June 2005 at Euro4,220,000 (�2,849,107)) and
purchased in 1999 for Euro3,290,000 (�2,220,750).

Executive Chairman, Sten Mortstedt, commented:

"I am very pleased with this further acquisition in France. The property is let
to a prime tenant on a long-term basis, ensuring secure income and an
attractive financial return. In addition, we are happy to have sold two
properties where we could see no further growth at a good profit and for prices
in excess of their June valuations."

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive 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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