Kardan N.V. — M&A Activity 2007

Apr 26, 2007

PRESS RELEASE

KARDAN S INFRASTRUCTURE SUBSIDIARY SIGNS AN MOU TO PURCHASE MAJORITY STAKE IN ISRAELI COMPANY

Amsterdam, 25 April, 2007 Kardan N.V. (Kardan) announces that its infrastructure subsidiary, Tahal Consulting Engineers Ltd. (TCE), signed a Memorandum of Understanding (MOU) with City Partners Limited Partnership (Seller) to purchase a 60% stake in Milgam. The purchase price will reflect a value of USD 19 million for Milgam. TCE already holds a 3.5% interest in Milgam.

Milgam provides different services to municipalities in Israel including collection of municipal taxes and water bills. TCE is purchasing Milgam in order to enter the water billing and collection field. Milgam can provide a strong platform because to its good relationships with Israeli municipalities.

The MOU includes TCE s commitment to purchase additional shares of Milgam from other shareholders, subject to their willingness to sell their shares.

The final agreement and the closing of the transaction are subject to certain conditions precedent, internal approval of both parties and the completion of due diligence.

.TCE is ^a 100% subsidiary of Tahal Group B.V., which is the holding company of the infrastructure activities of Kardan. Tahal Group B.V operates internationally in the fields of planning, design, construction and project management services as well as in turnkey and build, operate and transfer projects. Approximately 90% of the activities of Tahal are directly related to water and sewage systems.

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
Floor van Maaren	mobile +31(0)6 29 59 77 46
Uneke Dekkers	mobile +31(0)6 50 26 16 26