Kardan N.V. — Capital/Financing Update 2005

Nov 2, 2005

Not for release, publication or distribution, directly or indirectly, in or into the United States of America

PRESS RELEASE

KARDAN

KARDAN'S GROUP COMPANY TBIH TO ISSUE EUR 100 MILLION BONDS ON LONDON STOCK EXCHANGE

Amsterdam, 2 November 2005 – Kardan N.V. (Kardan) announces that its group company TBIH Financial Services Group N.V. (TBIH) expects to raise approximately Euro 100 million through an offering of Eurobonds to institutional investors. The bonds will have a 3 to 5 year maturity.

TBIH will use the proceeds to finance its consumer credit, leasing and mortgage finance activities in Bulgaria, Romania, Serbia, Russia and Ukraine.

ING is the lead manager of the Eurobond financing.

The bonds will be rated and are to be listed for trading on the London Stock Exchange. The final terms of the bonds have not yet been determined.

The issue is expected to be completed in November.

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 50% equity interest in TBIH.

This press release does not constitute an offer to purchase any securities, an announcement thereof, or an invitation or intention to make such offer. The bonds may not, directly or indirectly, be offered, sold, transferred or delivered, whether at their initial distribution or at any time thereafter, and neither the prospectus nor any other document in respect of the offering of the bonds may be distributed or circulated, other than to professional market parties within the meaning of the Exemption Regulation pursuant to the 1992 Act on the Supervision of the Credit System (Vrijstellingsregeling Wtk 1992) (which includes legal entities which are authorised or regulated to operate in the financial markets or, if not so authorised or regulated, whose corporate purpose is solely to invest in securities), provided that these parties acquire the bonds for their own account.

Not for release in the United States, Canada or Japan. These materials do not constitute an offer of securities for sale in the United States. The securities referred to in these materials have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to US persons unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. No public offering of securities will be made in the United States.

This communication is only being distributed to and is directed only at (a) persons who are outside the United Kingdom or (b) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (c) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a – d) of the Order (all such persons mentioned in (a), (b) and (c) together being referred to as "relevant persons"). Any securities mentioned in this communication will only be available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

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Not for release, publication or distribution, directly or indirectly, in or into the United States of America

This document is not a prospectus and, to the extent that it may constitute an advertisement, does not constitute an offer to sell or the solicitation of an offer to purchase notes or other securities of TBIH. Investors should not subscribe for any notes referred to in this document except on the basis of the information contained in the prospectus relating to the bonds. A prospectus will be published and investors will be able to obtain a copy of it from the issuer's registered office.

Stabilisation / FSA

About Kardan

Kardan is an international investment company active in three main 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