Acquisition

Release date: Wednesday 16th May 2007

Embargoed until: 0700hrs

                           CLS HOLDINGS PLC ("CLS")                            

                      ANNOUNCES A NEW FRENCH ACQUISITION                       

The Board of CLS is pleased to announce that it has through its wholly owned
subsidiary Citadel Holdings plc, purchased a property located at 6 rue Van
Gogh, 93560 Neuilly Plaisance comprising 2,572 sq m (27,685 sq ft) of office
space and 54 parking spaces, for a total price of €5.2 million (£3,536,000)
inclusive of all costs.

The property was built in 1991 and is located on the east side of Paris,
Neuilly Plaisance, 25 km from central Paris and has excellent transport links
both by road and rail, with a mainline station situated adjacent to the
property.

The property is multi-let and the existing rental income is €397,620 (£
270,381.60) (inclusive of rent guarantees) providing a return on equity of
18.4%, while the cash return on equity is 8.2% based on a completed loan
facility with Credit Foncier of €4.1 million (£2,788,000).

Executive Chairman of CLS, Sten Mortstedt commented:

"We are very pleased with this good quality office property in the Paris region
which offers attractive returns in line with our successful operations in
France."

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman
Per Sjöberg, Chief Executive Officer
Dan Bäverstam, Chief Financial Officer
CLS Holdings plc
www.clsholdings.com
Tel. [phone]

Ben Simons / Adam Reynolds
Hansard Group
www.hansardgroup.co.uk
Tel. [phone]