Property Acquisition

Release date: 14th August 2006

Embargoed until: 07:00

                      CLS HOLDINGS PLC ("CLS") ANNOUNCES                       

                             ACQUISITION IN FRANCE                             

The Board of CLS is pleased to announce that its wholly owned subsidiary
Citadel Holdings plc has acquired "Le Sully," rue Georges Bizet in
Mantes-la-Jolie (Yvelines, 78).

The freehold property is located in Mantes-La-Jolie, a suburb to the west of
Paris. The property is currently under development by Bati Gestion, a
well-known developer in Paris, is 60% completed and will be fully delivered in
December 2006.

The building, on three floors, comprises 2,517 sq m (27,093 sq ft) of office
space and 66 internal car parking spaces.

The entire property is fully let to the C.P.A.M. des Yvelines (the French
national healthcare authority) on a 15 year lease without any break options,
commencing in early 2007. The net rental income will be €656,484 per annum plus
indexation, the first indexation to take effect as of 1st January 2007.

The total purchase price for the property was €9,588,000 excluding VAT,
inclusive of all costs, representing an initial yield of 6.85%. Based on a
completed loan facility of €7,745,600 with a fixed 5 year interest rate of
4.85% per annum, cash return on equity is 14%.

Executive Chairman of CLS, Sten Mortstedt, commented:

"I am very pleased with this further acquisition in the Ile de France area. The
property is new and specified to a high standard. It is let to a prime tenant
on a 15 year term and shows a good initial return on equity, which is likely to
be enhanced further with indexation. The last published construction index, on
which the rent indexation is based, showed an annual increase of 7.2%."

                                    -ends-                                     

For further information, please contact:

Sten Mortstedt, Executive Chairman

Per Sjöberg, Chief Executive Officer

Philippe Alexis, Director French Operations

CLS Holdings plc

Tel. [phone]

www.clsholdings.com

www.citadelservices.com

Tel. [phone]



Adam Reynolds/Ben Simons
Hansard Communications
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