Kardan N.V. — Capital/Financing Update 2017

Aug 21, 2017

TAHAL SIGNS USD 176M PROJECT IN ZAMBIA

Amsterdam, August 21, 2017 - Kardan N.V. ('Kardan' or 'the Company'), active in Real Estate and Water Infrastructure in emerging markets announces that its subsidiary Tahal Group B.V. ('Tahal') has signed, together with its 50% partner, a \$ 176 million contract for a multipurpose agriculture and water project in Zambia.

Tahal and its partner for the activities in Angola and Zambia, ZRB Consulting Finance & Development Limited ('ZRB'), have signed a contract with the Government of the Republic of Zambia, represented by the Ministry of Agriculture, for the design, procurement, construction and commissioning of a multipurpose agriculture and water project in the Republic of Zambia. The project, comprising about 5,750 hectares of land, shall include a large scale community agricultural settlement with hundreds of family farms and commercial farms, based on roads, water, power and draining infrastructure, and a number of other facilities as well as related services, such as cropgrowing farms, irrigation facilities, greenhouses, support systems for professional training and use of advanced technology, purchasing, marketing and financial management; buildings and facilities for community, education, health and social and other services. With this second large agricultural project Tahal strengthens its international position in this sector.

Tahal and ZRB will be entitled, in equal shares, to the total contract price of \$ 176 million for the performance of the entire project.

The project is subject to several conditions precedent, the main condition is the successful completion of the financial closing by the Government of Zambia.

The project duration is 3 years, including planning and designing, and will commence once the conditions precedent are fulfilled.

Following the completion of the conditions precedent, the expected revenues from the project of \$ 176 million will be added to the backlog of Tahal which currently stands at around \$ 605 million.

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 two sectors that benefit from the rising middle class: Real Estate and Water Infrastructure. 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 31 March 2017 amounted to EUR 660 million; revenues totaled EUR 1.6 million in the first three months of 2017. Kardan is listed on Euronext Amsterdam and the Tel Aviv Stock Exchange.

For further information please contact:

Floor van Maaren / Eva Lindner +31 (0)6 2959 7746 / +31 (0) 6 3422 2831

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