Kardan N.V. — Capital/Financing Update 2011

Jul 21, 2011

KARDAN: PROGRESS ON SHARE BUYBACK AND DEBENTURE PURCHASE PLAN

Amsterdam, July 21, 2011 – Kardan N.V. ("Kardan" or "the Company"), active in Real Estate, Water Infrastructure and Financial Services in emerging markets announces that, further to its press releases of July 13, 2011, the following transactions took place between July 13, 2011 and July 20, 2011:

• in line with the initiation of the share buyback plan of up to EUR 1.5 million ("the Share Plan"), the Company has repurchased 69,808 Kardan shares on the Stock Exchange of Euronext Amsterdam ("ASE) at an average share price of EUR 3.22 for a total amount of EUR 225,099, and on the Tel Aviv Stock Exchange ("TASE") 64,840 shares at an average share price of approximately EUR 3.25 for a total amount of approximately EUR 210,927;
• in line with the plan of its subsidiary GTC Real Estate Holding B.V. ("GTC RE") to purchase debentures of Kardan, listed on TASE, up to an amount of EUR 25 million ("the Debenture Plan"), GTC RE purchased 15,276,935 Debentures Series A at an average price of NIS 1.16 totalling NIS 17.8 million (EUR 3.7 million) and 10,229,153 Debentures Series B at an average price of NIS 1.14 totalling NIS 11.6 million (EUR 2.4 million).

To date, approximately 29% of the Share Plan and 24% of the Debenture Plan has been completed. As at July 20, 2011 GTC RE owns 1.6% of Kardan Debentures Series A and 3.6 % of Kardan Debentures Series B and Kardan owns 0.14% of its shares (excluding the shares of Kardan held by its 74% subsidiary Kardan Israel Ltd).In the event that one or both of the Plans will be stopped before August 8 coming, this will be publicly disclosed by means of a press release.

DISCLAIMER

This press release contains forward-looking statements and information, for example concerning the financial condition, results of operations, businesses and potential exposure to market risks of Kardan N.V. and its group companies ("Kardan Group").All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements (including "forward looking statements" as defined in the Israeli Securities Law).. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. These forward-looking statements are identified by the use of terms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''intend'', ''may'', ''plan'', ''objectives'', ''outlook'', ''probably'', ''project'', ''will'', ''seek'', ''target'', ''risks'', ''goals'', ''should'' and similar terms and phrases. A variety of factors, many of which are beyond Kardan Group's control, affect our operations, performance, business strategy and results and could cause the actual results, performance or achievements of Kardan Group to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For Kardan Group, particular uncertainties arise, amongst others but not limited to and not in any order of importance, (i) from dependence on external financing with the risk that insufficient access to capital threatens its capacity to grow, execute its business model, and generate future financial returns (ii) from concentration of its business in Central Eastern Europe and China as a result of which Kardan Group is strongly exposed to these particular markets (iii) from risks related to the financial markets as a result of Kardan's listings and (iv) from it being a decentralized organization with a large number of separate entities spread over different geographic areas in emerging markets, so that Kardan Group is exposed to the risk of fraudulent activities or illegal acts perpetrated by managers, employees, customers, suppliers or third parties which expose the organization to fines, sanctions and loss of customers, profits and reputation etc. and may adversely impact Kardan's ability to achieve its objectives and (v) from any of the risk factors specified in Kardan's Annual Report 2010 and in the "Periodic Report for 2010"published by Kardan N.V. in Israel on March 31, 2011 and which is also available at the Kardan website. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Kardan N.V. does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.

About Kardan

Kardan identifies and develops assets in promising emerging markets, mainly in Central and Eastern Europe, China and CIS. Its activities are mainly focused on three sectors that benefit from the rising middle class: Real Estate, Water Infrastructure and Retail Lending. In addition, the company has some investment activities in Israel. Company headquarters are in the Netherlands. Kardan aims at holding controlling interests in its investments and, through the development of local business platforms, is actively involved in the definition and implementation of their strategy. Total assets as of March 31, 2011 amounted to EUR 5.6 billion; revenues totaled EUR 181 million in the first quarter of 2011. Kardan is listed on NYSE Euronext Amsterdam and the Tel-Aviv Stock Exchange.

For further information please contact: Jan Slootweg

Managing Director +31 (0)20 305 0010 Jan@kardan.nl

www.kardan.nl

"This press release contains regulated information (gereglementeerde informatie) as defined in the Dutch Act on Financial Supervision (Wet op het financieel toezicht)"