CLI Cls Holdings Plc

    Release date: 24th April 2006

Embargoed until: 07:00

                           CLS HOLDINGS PLC ("CLS")                            

                    ANNOUNCES THREE NEW GERMAN ACQUISITIONS                    

The Board of CLS is delighted to announce the exchange of contracts for three
further office properties in Germany at a total consideration of Euro19.5 million
(�13.55 million) inclusive of all costs. One building is located in Munich and
two in Hamburg.

The property known as R�desheimer Strasse 9, Munich is newly built having been
completed in 2002, and comprises 2,587 sq m (27,600 sq ft) of offices and
storage space together with 35 car parking spaces. The building is 100% let to
three tenants with 82% of the rental income secured until October 2014 and the
remainder on five year leases.

Harburger Ring 33, Hamburg comprising 3,330 sq m (35,530 sq ft) of offices
constructed in 1993 is 100% let to the City of Hamburg until November 2013.

Merkurring 33-35, situated in a business park just north of Hamburg city centre
comprises 8,262 sq m (88,156 sq ft) of offices and production / warehouse
facilities. The building constructed in 2002, is let to York, a global heating,
ventilation and air conditions manufacturer until the end of 2011.

The properties, which were purchased separately, generate an annual rent of Euro
1,402,500 (�975,000) and were purchased on an initial yield including all costs
of 7.3%.

The initial anticipated return on equity on completed loan facilities of Euro15.18
million (�10.55 million) for the three properties is 19.8%, whilst the cash
return on equity is 15.4%.

Furthermore CLS has now completed the acquisition and financing of Adlershofer
Tor, Berlin, announced in January this year. The purchase price was Euro39.3
million (�27.24 million) inclusive of all costs. The building comprises 19,715
sq m (212,212 sq ft) office and retail space with 45% of the building let to
Kaufland, the German retailer and an average lease length of over 13 years.

Christian Holle of IAM has acted as consultant for CLS on all these
transactions.

The value of the German portfolio of CLS (at cost price and including
properties where contracts have been exchanged) now stands at Euro108.25 million
(�75.23 million). CLS intends to make further selective acquisitions in
Germany, where current yields generate attractive returns on equity on a geared
basis, with potential upside in rental growth.


Executive Chairman, Sten Mortstedt, commented:

"These investments offer both high initial returns and the possibility for
further value enhancement in a recovering German economy. We are continuing to
see good investment opportunities in Germany and anticipate further
acquisitions in the future."

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Per Sj�berg, Chief Executive Officer

Dan B�verstam, Chief Financial Officer

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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