Kardan N.V. — Capital/Financing Update 2007

Mar 20, 2007

KARDAN

PRESS RELEASE

KARDAN TO ENTER THE TURKISH INSURANCE MARKET

Amsterdam, 20 March 2007 – Kardan N.V. (Kardan) announces that its group company TBIH Financial Services Group N.V. (TBIH) has signed an agreement to purchase a 58.2% stake in Ray Sigorta A.Ş. (Ray Sigorta), a Turkish insurance company, for a consideration of USD 81.5 million.

Ray Sigorta holds a 3% market share of the Turkish non life insurance market, with gross written premiums in 2006 of approximately USD 184 million. The purchase of the company is in line with TBIH's strategy to be active in countries that are characterized by low insurance penetration. Turkey is one of the fastest growing insurance markets in Europe. Moreover, the Turkish market is an attractive target due to its size (population of 70 million).

TBIH is buying the stake from the majority shareholders of Ray Sigorta, the Turkish company Doğan Şirketler Grubu Holding A.Ş. (Doğan). During the course of 2010 and 2011, Doğan will have the option to sell its remaining 20% holding in Ray Sigorta to TBIH, at the current transaction price increased by LIBOR.

The remaining 21.8% Ray Sigorta shares are traded at the Istanbul Stock Exchange. TBIH expects that, within the framework of the transaction, it will be required to make a tender offer for these publicly listed shares. This would require an additional investment of up to USD 30.5 million.

In addition, TBIH agreed to increase the capital of Ray Sigorta in the amounts necessary to meet the applicable regulatory requirements, which TBIH estimates to be between USD 17 million and USD 30 million.

The closing of the transaction is subject to a confirmatory due diligence review by TBIH and receipt of regulatory approvals.

TBIH is a subsidiary of Kardan Financial Services B.V. (KFS). TBIH is a leading retail financial services provider active in several CEE and CIS countries.

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 most of its activities. Kardan holds controlling interests in its main businesses and is actively involved in the definition and implementation of their strategy. Total assets per December 31, 2005 amounted to USD 1,769 million, with revenues of USD 547 million. The number of employees engaged by the group is approximately 6,100 as of

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KARDAN

December 31, 2005. Kardan is listed on Euronext Amsterdam and the Tel-Aviv Stock Exchange.

For further information please contact: Citigate First Financial Uneke Dekkers phone +31 (0)20 575 40 21 / mobile +31(0)6 50 26 16 26 Floor van Maaren phone +31 (0)20 575 40 78 / mobile +31(0)6 29 59 77 46