Kardan N.V. — M&A Activity 2007

Apr 17, 2007

PRESS RELEASE

KARDAN COMPLETES TRANSACTION IN FINANCIAL SERVICES SUBSIDIARY

Amsterdam, 17 April 2007 Following the press release dated 22 August 2006, Kardan N.V. (Kardan) announces that it has completed the transaction with Wiener Stadtische Versicherung AG Vienna Insurance Group (WS) separating the insurance and pension activities from its banking and assets management activities. As a result, Kardan has increased its holdings in the banking, retail lending, and asset management activities.

Following this transaction Kardan will effectively hold 80% in the banking, retail lending and asset management activities (under TBIF) and 35.8% in the insurance and pension activities (under TBIH). TBIH will remain under the joint control of Kardan and WS. Kardan and WS intend to cooperate in pursuing further opportunities in insurance and pension activities in the CEE countries.

Following the completion of the transaction, the structure is as follows:

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 businessesand 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 approximately 7,980 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

Uneke Dekkers phone +31 (0)20 575 40 21 / mobile +31(0)6 50 26 16 26