Kardan N.V. — Capital/Financing Update 2005

Nov 30, 2005

KARDAN

PRESS RELEASE

KARDAN EXPANDS REAL ESTATE ACTIVITIES TO WESTERN EUROPE AND ANNOUNCES FIRST TRANSACTION IN GERMANY

Amsterdam, 30 November 2005 - Kardan N.V. (Kardan) announces that its subsidiary GTC Real Estate N.V. (GTC RE) has decided to further expand its real estate activities into the Western European market. For that purpose, GTC RE has formed a joint-venture with Property and Buildings Corporation (PBC), a subsidiary of the leading Israeli investment group IDB Development Corporation. The joint venture, GTC Investments B.V., has entered into an agreement to acquire control of a real estate portfolio comprising 7 office properties in Germany.

Under the agreement, GTC Investments will acquire an interest of approximately 80% in a company that owns this real estate portfolio. The properties are quality office buildings situated in major cities throughout Germany: Bonn, Essen, Hamburg, Mainz and Munich. The majority of the properties are let to one of the leading banks in Germany. The total consideration for the real estate portfolio amounts to approximately EUR 108 million (including acquisition costs). Approximately EUR 96 million of the total consideration will be financed through a bank loan. Kardan estimates that the portfolio will generate annual rental revenues of approximately EUR 8.3 million.

GTC RE has identified Western Europe as a potential market to further expand its real estate portfolio and has made the strategic decision to enter this market. The German real estate market in particular is an attractive market for GTC RE given the attractive yields and the strengthening economy. The joint venture will focus on acquiring cash generating office and commercial properties throughout Western Europe.

GTC RE and PBC will each hold approximately 49% of the joint venture. GTC RE's partner, PBC, a subsidiary of IDB Development Corporation, is one of Israel's largest real estate companies. Four of its subsidiaries and affiliates are listed on the Tel-Aviv Stock Exchange (TASE). PBC has a solid financial base with an AA rating by Ma'alot, Israel's rating agency. PBC's operations encompass a full spectrum of real estate activity. It is active in income producing properties and residential neighbourhoods in Israel, the USA and Europe. PBC's activities include the initiation, development, planning, construction, rental and management of industrial, office, commercial and high-tech properties. PBC owns and operates approximately 900,000 sqm of property throughout Israel and is one of the companies composing the TASE100 index with a market cap of NIS 1.8 billion (approximately USD 400 million).

About GTC RE

GTC RE is the real estate division of the Kardan Group. Its shares are listed on the Tel Aviv Stock Exchange and are included in several of its major indices. GTC RE is active in Central and Eastern Europe and China. GTC RE (indirectly) holds a 51% stake in Globe Trade

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KARDAN

Centre S.A. (GTC Poland). GTC Poland is one of the leading real estate developers in Central and Eastern Europe. It operates in 6 countries: Poland, Hungary, Romania, the Czech Republic, Serbia and Croatia. GTC Poland is listed on the Warsaw Stock Exchange with a current market cap of over USD 800 million.

About Kardan

Kardan is an international investment company with a focus on three sectors: Real Estate, Financial Services and Infrastructure. Kardan is primarily active in Central and Eastern Europe, where it conducts more than 75% of its activities. Kardan holds controlling interests in its investee companies and is actively involved in the definition and implementation of their strategy. Total assets per December 31, 2004 amounted to USD 1,437 million, with revenues of USD 337 million. The number of employees engaged by the group amounted to approximately 4,160 as of December 31, 2004. Kardan is listed on Euronext Amsterdam and the Tel-Aviv Stock Exchange.

For further information please contact:

Citigate First Financial phone +31 (0)20 575 40 10

Uneke Dekkers mobile +31(0)6 50 26 16 26