CLI Cls Holdings Plc

    Release date: 23 January 2006

Embargoed until: 07:00

                  CLS HOLDINGS PLC ANNOUNCES NEW LETTINGS AND                  

                LEASE EXTENSIONS AT SPRING GARDENS, LONDON SE11                

CLS Holdings plc ("CLS") today announces new lettings to the Home Office at its
Spring Gardens Estate in Vauxhall, London SE11. The Home Office has committed
to two further infill buildings and has agreed to extend a number of existing
leases to take control of the entire Estate. The Home Office is now the sole
occupier of Spring Gardens following the relocation of CLS's own offices to new
premises in Victoria in December 2005.

Spring Gardens currently provides 171,392 sq ft (15,923 sq m) of office
accommodation in six modern buildings arranged around a central courtyard. The
two new infills, which will be constructed by CLS, will provide a further
26,945 sq ft (2,503 sq m) taking the total to 198,337 sq ft (18,426 sq m).

Planning consent for the first new infill was secured in June 2005 and upon
completion in December 2006 the new building will provide 10,175 sq ft (945 sq
m) of offices. The Home Office has exercised an option signed in 2004 in
respect of this infill and at completion will take a lease to 2026 at a rent of
�32.00 psf (�344 psm).

Planning consent for the second new infill was granted in August 2005 and this
building will provide a further 16,770 sq ft (1,558 sq m) of new offices, also
due to complete in December 2006. The Home Office has entered into a new
commitment for this infill which expires in 2026 at an initial rent of �30.49
psf (�328 psm).

In addition, upon completion of these two new infills, the Home Office will
extend a number of existing leases such that the whole of the Estate will be
let until 2026. The total income will initially rise from �5,451,438 per annum
to approximately �6,288,355 per annum.

Until 2015, 55% of the total income will be subject to open market rent review
and 44% subject to annual indexation. From 2015 until expiry in 2026, 100% of
the rent will be subject to annual indexation.

Sten Mortstedt, Executive Chairman of CLS, said:

"This is a significant transaction for CLS as it substantially enhances the
value of one of our most significant UK holdings and represents the conclusion
of many years of co-operation with the Home Office. We are pleased to have
secured the Home Office as a long term tenant and will be working with them to
deliver these new offices within the next 12 months."

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Per Sj�berg, Chief Executive Officer

Kevin Chapman, UK Property Director

CLS Holdings plc

www.clsholdings.com

Tel. +44 (0)20 7582 7766

Ben Simons

Hansard Communications

Tel. +44 (0)20 7245 1100




END

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