CLI Cls Holdings Plc

    For immediate release: 12 January 2007

                               CLS Holdings plc                                

                           Response to Press Comment                           

The Board of CLS Holdings plc (CLS) wishes to point out some inaccuracies in
the article entitled "Row breaks out over the Shard of Glass," published in the
Financial Times this morning.

Firstly it is not correct that CLS and Sellar Property Group (SPG) wish to
charge Simon Halabi �28m for `development and project management' fees on the
Shard and the adjacent 600,000 sq ft redevelopment of New London Bridge House
project, for which planning consent was recently obtained. This figure covers a
significantly wider brief and represents the combined development fees to be
charged to the consortium by SPG and CLS in their roles as developers of the
Shard and New London Bridge House, of which Halabi's Trust, SPG and CLS will
each bear a one third share.

Secondly the article implies that CLS and SPG paid Halabi �12m in an out of
court settlement. That is not the case. In fact Halabi's Family Trust paid �
3.2m to CLS and SPG to purchase a one third interest in New London Bridge
House. It is believed that Halabi's Trust may have been paid a substantial sum
by his trustees' insurers, however neither CLS nor SPG had any involvement in
that arrangement and can therefore not confirm that this substantial payment
has been made.

Thirdly, the evidence of Mr Hussey on behalf of the Halabi Family Trust has
been rejected by the London based expert. Independent experts whose evidence
has been submitted have fully substantiated the proposed development fees.

The consortium remains committed to delivering two world class buildings in
conjunction with a modern infrastructure for the London Bridge Quarter.

                                     -End-                                     

Contacts:

Sten Mortstedt, Executive Chairman

CLS Holdings plc

Tel. +44 (0)20 7582 7766

Adam Reynolds/Ben Simons

Hansard Group

Tel. +44 (0)20 7245 1100



END

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