CLI Cls Holdings Plc

    Release date: Thursday 19th July 2007

Embargoed until: 0700hrs

                               CLS HOLDINGS PLC                                

                                    ("CLS")                                    

                        ANNOUNCES A GERMAN ACQUISITION                         

The Board of CLS Holding plc is pleased to announce that it has acquired
through a subsidiary an office building in Hamburg for a total net
consideration of Euro16.0 million (�10.8 million) inclusive of all costs.

The property, known as Fangdieckstrasse 75-75B Lurup, comprises 12,968 sq m
(157,591 sq ft) of office and retail space, together with 127 car parking
spaces. The building is multi-let with Linde Gas AG being the main tenant
occupying 31% of the space with 11% currently vacant. The property was
constructed in 2001 to a high standard.

The existing rental income is Euro1,197,924 (�808,600) and estimated rental value
of the property once fully let is Euro1,333,360 (�900,000). The current rent
generates an initial return on equity of 13.5% and on a fully let basis 17.2%,
whilst the cash return on equity based on a completed loan facility at a fixed
rate of 5.75% is 9.3% with the existing rental income and 13.1% on a fully let
basis.

Executive Chairman of CLS, Sten Mortstedt, commented:

"This investment in a recently constructed building offers attractive initial
returns and significant potential for increase in value through further
lettings and yield compression.

The German market has performed strongly and hence it has become more difficult
for CLS to acquire properties meeting our financial criteria. However we have a
well established team and we are confident that we can continue to find
attractive investments despite the increased competition."

                                    -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

Adam Reynolds / Ben Simons

Hansard Group

www.hansardgroup.co.uk

Tel. +44 (0)20 7245 1100



END

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