Kardan N.V. — Capital/Financing Update 2007

Feb 13, 2007

KARDAN

PRESS RELEASE

KARDAN PREPARES TO POSSIBLY ISSUE DEBENTURES IN ORDER TO RAISE CAPITAL

Amsterdam, 13 February 2007, Kardan N.V. (Kardan) announces that it is preparing to raise capital of more than USD 100 million through a private placement of non convertible debentures to Israeli institutional investors.

The proposed debentures will obtain a rating from Standard & Poors affiliate in Israel, Ma'alot. The actual rating will be awarded by Ma'alot within the coming days. The debentures will most likely be listed for trading on the Tel Aviv Stock Exchange within 12 months after their issuance.

The issuance of the debentures is subject to the approval of Kardan's supervisory board.

The capital being raised will be used for further investments.

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