Kardan N.V. — Capital/Financing Update 2015

Jul 3, 2015

KARDAN DEBT SETTLEMENT IN FORCE

Amsterdam, July 3, 2015 - Kardan N.V. ('Kardan' or 'the Company'), active in Real Estate, Water Infrastructure and Financial Services in emerging markets announces that, further to the announcement of June 16, 2015, the debt settlement between the Company and the holders of the Company's debentures Series A and of debentures Series B (the "Debenture Holders') has entered into effect on July 3, 2015 by means of signing amended trust deeds for debentures Series A and Series B (the "Amended Trust Deeds").

On July 3, 2015 (the "Completion Date") the signing of the Amended Trust Deeds was completed after the fulfilment of all conditions and actions required for the Amended Trust Deeds to enter into force.

The Debt Settlement in headline entails postponing the payments of principal of 2015 and 2016 by 24 months, against an additional interest of 1.875% p.a. for each series and pledges on the Group's interests in all its main subsidiaries. In addition, certain financial covenants and business restrictions will apply until agreed upon relief thresholds have been met. Furthermore, the Company shall allocate shares to the Debenture Holders, representing approximately 10% of the Company's issued and paid-up capital as well as a cash compensation of EUR 750,000. The Completion Date is also the Record Date for the allocation of shares and payment of the cash compensation.

The Company will now proceed to execute its commitments under the Amended Trust Deeds.

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 (jointly "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 N.V.'s listings on Euronext Amsterdam and the Tel Aviv Stock Exchange 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 Group's ability to achieve its objectives and (v) from any of the risk factors specified in Kardan N.V.'s Annual Report and in the related "Periodic Report" (published by Kardan N.V. in Israel) published in April, 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 Asia (predominantly China), Africa and selected CEE and CIS countries. Its activities are mainly focused on three sectors that benefit from the rising middle class: Real Estate, Water Infrastructure and Banking & Retail Lending. Company headquarters are in the Netherlands. Kardan aims at holding controlling interests in its investments and is actively involved in the definition and implementation of their strategy through its local business platforms. Total assets as of March 31, 2015 amounted to EUR 1 billion; revenues totalled EUR 49 mn in the first quarter of 2015. Kardan is listed on Euronext Amsterdam and the Tel Aviv Stock Exchange.

For further information please contact: Caroline Vogelzang Director Investor Relations Vogelzang@kardan.nl +31 (0)20 305 0010

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