Acquisition

16th May 2007 07:00

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 ¢â€š¬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 ¢â€š¬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 ¢â€š¬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."

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For further information, please contact:

Sten Mortstedt, Executive ChairmanPer Sjƒ¶berg, Chief Executive OfficerDan Bƒ¤verstam, Chief Financial OfficerCLS Holdings plcwww.clsholdings.comTel. +44 (0) 20 7582 7766Ben Simons / Adam ReynoldsHansard Groupwww.hansardgroup.co.ukTel. +44 (0) 20 7245 1100

CLS HOLDINGS PLC

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