CLI Cls Holdings Plc

    Release date: 8th November 2005

Embargoed until: 07:00

                           CLS HOLDINGS PLC ("CLS")                            

                      ANNOUNCES ITS FIRST ACQUISITION OF                       
                          OFFICES IN HAMBURG, GERMANY                          

The Board of CLS is delighted to announce its intention to add Germany to its
core property investment regions, which currently consist of UK, Sweden and
France. In line with this strategy to build a portfolio in Germany, the Company
is pleased to report the acquisition of a building in West Hamburg at a price
of Euro3.6 million (�2.45 million) inclusive of all costs.

The property, known as Frohb�sestrasse 12, was constructed in April 2005 and
comprises 1,993 sq m (21,453 sq ft) of offices together with 19 car parking
spaces. It has the benefit of a new lease with Scope International Life Science
Hamburg AG, a pharmaceutical research company, for a term of 15 years without a
break at an annual rent of Euro248,835 (�169,630). The rent will be adjusted by
reference to the German retail price index.

The return on equity on the completed loan facility of Euro2.68 million (�1.82
million) is 22.8%, whilst the cash return on equity is 14.4%.

This acquisition represents CLS' first investment in the German market for many
years (having owned a property in D�sseldorf for many years). CLS intends to
make further selective acquisitions in Germany, where the Company has
identified an opportunity to benefit from the attractive yields and high
returns on equity on a geared basis.


Executive Chairman, Sten Mortstedt, commented:

"I am particularly excited by the opportunities that Germany presents as an
additional core region in our portfolio. This first venture into Hamburg
provides an excellent example of the quality of returns that we stand to gain
from this market."

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Tom Thomson, Chief Executive & Vice Chairman

Dan B�verstam, Chief Financial Officer

Steven Board, Chief Operating Officer

CLS Holdings plc

www.clsholdings.com

Tel. +44 (0)20 7582 7766

Adam Reynolds/Ben Simons

Hansard Communications

Tel. 44 (0)20 7245 1100



END

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