CLI Cls Holdings Plc

    Release date: Monday 8th October 2007

Embargoed until: 0700hrs

                           CLS HOLDINGS PLC ("CLS")                            

                    ANNOUNCES REFINANCING OF SPRING GARDENS                    

The Board of CLS Holdings plc is pleased to announce that it has refinanced its
property Spring Gardens. The property is located off Albert Embankment on the
South Bank in London.

The building comprises 197,658 sq ft (18,361 sq m) of office space and is fully
let to a department of the Home Office at an annual rent of �6.4 million. The
property has recently been extended by 26,266 sq ft (2,440 sq m) and on
occupation by the tenant of the increased space, the majority of existing
leases were extended to 28 February 2026.

The new facility of �101.2 million which was provided by Eurohypo AG, London
results in a �36.8 million cash surplus, and gives an ongoing reduction in
annual loan repayments of �1.2 million compared with the previous facility.

The interest rate is fixed for five years at 5.34% including margin, secured
through an interest rate swap for 19 years cancellable by the bank after five
years at nil consideration. This swap was entered into earlier in 2007 in order
to take advantage of the then prevailing attractive interest rates.

Executive Chairman Sten Mortstedt commented:

"I am very pleased with the performance of Spring Gardens which demonstrates
the possibilities of value creation through active property and debt
management. I am also pleased that the attractive funding package could be
completed in the currently more difficult lending environment and it was key to
be dealing with a bank with whom we have a good longstanding relationship.

The CLS Group has increased its cash deposits from �100.8m (30/06/07) with �
44.2m to �145.0m and is therefore well equipped to take advantage of any
downturn in the market."

                                    -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



END

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