Kardan N.V. — Capital/Financing Update 2005

Nov 24, 2005

KARDAN

PRESS RELEASE

KARDAN'S GROUP COMPANY TBIH RECONSIDERS EURBOND ISSUANCE

Amsterdam, 24 November 2005 – Following the press release published on 2 November 2005, Kardan N.V. (Kardan) announces that, in spite of the great interest of institutional investors in the Eurobond issuance of TBIH Financial Services Group N.V. (TBIH), it has decided to reconsider the launch of the forthcoming EUR 100 million Eurobond. TBIH is re-evaluating its financing options because of the planned equity investment by Wiener Städtische Allgemeine Versicherung Aktiengesellschaft in Kardan Financial Services B.V. (which owns 58.18% of TBIH), as was announced on 16 November 2005.

TBIH is a leading investor in financial services, including general and life insurance, pension fund management, asset management, mortgage finance and lending activities in several CEE countries. Kardan indirectly holds approximately a 51% equity interest in TBIH.

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 uneke Dekkers Floor van Maaren phone +31 (0)20 575 40 10 mobile +31(0)6 50 26 16 26 mobile +31(0)6 29 59 77 46