Kardan N.V. — Capital/Financing Update 2007

Mar 16, 2007

KARDAN

PRESS RELEASE

KARDAN TO PURCHASE CONTROLLING INTEREST IN ALBANIAN INSURANCE COMPANY

Amsterdam, 16 March 2007 – Kardan N.V. (Kardan) announces that its group company TBIH Financial Services Group N.V. (TBIH) has signed a memorandum of understanding (MOU), whereby TBIH will purchase 60% of Sigma Albania (Sigma), an Albanian insurance company, for a consideration of EUR 12.9 million.

Sigma is primarily active in non-life insurance and is the second largest insurance company in Albania. Sigma owns a 100% stake in Sigma Macedonia and has a branch office in Kosovo.

The purchase of Sigma is in line with the strategy of TBIH to be active in countries that have a low level of insurance penetration.

The MOU includes the option for TBIH to purchase the remaining 40% stake in Sigma within the next four years. The final agreement and the closing of the transaction are subject to the receipt of certain regulatory approvals and the completion of due diligence.

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 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 Floor van Maaren phone +31 (0)20 575 40 21 / mobile +31(0)6 50 26 16 26 phone +31 (0)20 575 40 78 / mobile +31(0)6 29 59 77 46