CLI Cls Holdings Plc

    Embargoed: 0700hrs 10 August 2004

                               CLS HOLDINGS PLC                                

   NEW CONSTRUCTION AND NEW LEASE AT SPRING GARDENS OFFICE COMPLEX, TINWORTH   
                              STREET, LONDON SE11                              

The Board of CLS Holdings plc ("CLS") is pleased to announce that it has agreed
with the Home Office to construct a new office building comprising
approximately 855 sq m (9,200 sq ft) linking two of the existing buildings at
its Spring Gardens complex, already occupied by the Home Office.

Planning consent has been granted for the new building and on its completion in
2005 a new lease will be entered into in respect of approximately 7,060 sq m
(76,000 sq ft) of the office complex. This lease, which will replace existing
leases most of which expire in 2010, will be for a fixed term of 20 years from
completion of the new building at a rent of approximately �2,495,000 per annum
such rent to be increased annually in line with RPIX from June 2007.

Following completion of the new lease, the rent payable by the Home Office for
the whole of the office complex (which will then extend to over 15,914 sq m
(171,300 sq ft)) will be approximately �5,452,000 per annum, of which 46 per
cent will be secured under the new lease to 2025, a further 25 per cent secured
until 2015 and the remaining 29 per cent secured until 2010.

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Tom Thomson, Chief Executive & Vice Chairman

CLS Holdings plc

Tel. +44 (0)20 7582 7766

www.clsholdings.com

Adam Reynolds / Ben Simons

Hansard Communications

Tel. 020 7245 1100



END

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