Disposal

29th Aug 2006 07:00

Release date: 29 August 2006Embargoed until: 07:00 CLS HOLDINGS PLC ("CLS") ANNOUNCES THE DISPOSAL OF THE MAJORITY OF ITS INVESTMENT IN KERONITE PLC ("KERONITE") CLS announces that its Equity Investment division has sold the majority of itsinvestment in Keronite for ‚£3.6 million, which will produce a book profit ofapproximately ‚£3.0 million for CLS. CLS will retain a holding of 6.5 per centof the shares in the company, on a fully diluted basis.Keronite is a technology company with an environmentally-friendly process forthe surface treatment of light alloys.This transaction has facilitated a cash injection into Keronite by a group ofnew and existing investors, which is expected to accelerate the company'scommercial development to the benefit of its shareholders. CLS has been aninvestor in Keronite since July 2000.Executive Chairman for CLS, Sten Mortstedt, commented:"We are pleased that Keronite has secured significant funding to continue itsdevelopment, whilst at the same time enabling CLS to partially exit thisinvestment and retain further upside potential." -ends- For further information, please contact:Sten Mortstedt, Executive ChairmanPer Sjƒ¶berg, Chief Executive OfficerCLS Holdings plcTel. +44 (0)20 7582 7766www.clsholdings.comENDCLS HOLDINGS PLC

---

Related Shares:

CLS Holdings