Kardan N.V. — M&A Activity 2007

Jul 30, 2007

PRESS RELEASE

KARDAN ENTERS NEW CITY IN CHINA TO DEVELOP FIRST SHOPPING MALL PROJECT

Amsterdam, 30 July 2007 - Kardan N.V. (Kardan) announces that its real estate subsidiary GTC Real Estate N.V (GTC RE) will develop its first shopping mall in Chengdu, China. GTC RE won, in a 75%/25% partnership with its local partner Lucky Hope, the ownership of the 20,000 sq.m. new development site through an auction.

The project is located in Chengdu, a major city in the West of China, the capital of Sichuan Province. The location of the site is in the southern part of the city in the newly developed Hi-tech district, a mid- to upper class area, off a main road connecting downtown Chengdu with this new district. The site is surrounded by4 mega stores; IKEA, Auchan, Decathlon and Fusen, a large Chinese furniture chain store. These 4 stores are either already operational or will be by the end of this year.

On the site, GTC RE plans to develop a 40,000 sq.m. shopping mall over the next 3 years.

The consideration for the land is approximately EUR 25.8 million. The total investment in the project is estimated at approximately EUR 57 million.

This will be GTC RE s first developed shopping mall in China and its first development in Chengdu, the third Chinese city in which GTC RE established operations.

GTC RE, the real estate division of the Kardan Group, holds a 46.1% stake in GTC SA, one of the largest real estate developers in CEE. GTC RE is active in Europe through GTC SA and GTC investments B.V., and in China through GTC Real Estate China Ltd. GTC RE S shares are listed on the Tel Aviv Stock Exchange and are included in several of its major indices. Kardan currently holds (directly and indirectly) a 61.6% stake in GTC RE.

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, 2006 amounted to USD 2.9 billion, with revenues of USD 700.7 million. The number of employees engaged by the group is approximately7,980 as of December 31, 2006. Kardan is listed on Euronext Amsterdam and the Tel-Aviv Stock Exchange.

For further information please contact:

Citigate First Financial phone +31 (0)20 575 40 10 Uneke Dekkers mobile +31(0)6 50 26 16 26