Release date: 30 January 2006

Embargoed until: 07:00

                          CLS HOLDINGS PLC ANNOUNCES                           

                    THREE NEW PROPERTY PURCHASES IN GERMANY                    

In line with its strategy announced in November 2005 to establish a portfolio
in Germany, CLS Holdings plc ("CLS") is delighted to announce three further
acquisitions in Germany for a total consideration of Euro78.2 m (�53.6 m).

Firstly, CLS has purchased a new property in Hamburg, known as Jarrestrasse
8-10. The building was constructed in 2003 and comprises 5,654 sq m (60,330 sq
ft) of offices and storage together with car parking. The property is 100% let
to 9 different tenants on leases ranging from one to six years, generating an
annual rent of Euro932,606 (�639,560).

The initial yield is 7.5%. The initial return and cash return on equity with
the completed loan facility of Euro10.4 million (�7.13 million) is 23.2%.

Secondly, CLS has agreed to purchase Adlershofer Tor, a 19,715 sq m (212,212 sq
ft) retail and office building in Adlershof Business and Science Park in south
Berlin. The average lease length is over 13 years with 45% of the building let
to Kaufland, the German retailer, with 17 � years unexpired. The property will
generate an initial rental income of Euro2,796,344 (�1,917,668) and an initial
yield of 7.5% upon its expected completion in April 2006. The initial
anticipated return on equity is 20% and the cash return on equity is
anticipated at 14%.

Thirdly, CLS has contracted to purchase the New Head Office of BrainLAB in
Feldkirchen, Munich, let on a 10 � year term with an initial rent of Euro2,004,091
(�1,374,359). The building will comprise 19,466 sq m (209,532sq ft) of office,
storage, exhibition space and parking and is expected to be completed by
mid-2006. The initial yield is 7.0%. The initial anticipated return on equity
is 20% and the cash return on equity is anticipated at 15%.

Christian Holle of Immobilien Asset Management GmbH has acted as consultant for
CLS on these transactions.

Upon completion of these purchases, CLS' property portfolio in Germany will
comprise five properties located in Hamburg, Munich, Berlin and Dusseldorf with
a total value of Euro84.2 million (�57.74 million). Furthermore, CLS intends to
continue its expansion in Germany in view of the continuing attractive returns.

Executive Chairman, Sten Mortstedt, commented:

"We are delighted to have been able to acquire these properties either newly
constructed or in the course of construction with the benefit of good financial
returns. We have now built up a sizeable portfolio in Germany and as we are
continuing to see quality buildings offered in the market, further acquisitions
are anticipated in the near future."

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Per Sj�berg, Chief Executive Officer

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

+44 (0)20 7245 1100



END
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