Kardan N.V. — M&A Activity 2008

Sep 10, 2008

KARDAN EXPLORES POSSIBILITIES TO SIMPLIFY ITS HOLDING STRUCTURE

Amsterdam, September 10, 2008 - International investment company Kardan N.V. (Kardan) announces that its Management Board will examine the possibilities to simplify the holding structure of the Group. This includes a potential transfer of all shares of Kardan Israel Ltd. which are held by Kardan to the shareholders of Kardan. As previously announced Kardan is investigating the process of merging GTC Real Estate N.V. into Kardan. Both transactions provide more transparency for Kardan as a Group, further optimise efficiency and turn Kardan into a more focused company, active in emerging markets, in sectors with high growth potential.

Kardan holds approximately 71% of the shares of Kardan Israel Ltd. (KIL). KIL is listed on the Tel Aviv Stock Exchange and is active in Israel in 3 sectors: Real Estate, Automotive and Consumer goods, Communication and Technology. The process and its form are subject to further investigation which involves the accompanying consequences and aspects in the field of legal, finance and tax.

Furthermore, KIL has the intention to distribute part of its 13% stake in Tel Aviv Stock Exchange listed GTC Real Estate N.V. (GTC RE) as a dividend in kind to its shareholders. The total direct and indirect holdings of Kardan in GTC RE will not change as a result of this.

As announced Kardan is also investigating the feasibility of a merger of GTC RE into Kardan. If this merger takes place, it will create a larger holding company and will strengthen the equity position and the value of the combined entity. The merger if and when completed is not expected to be realised before the end of 2008.

Kardan believes that the three steps as described above will benefit the shareholders. The three steps are not conditioned and there is no certainty that these will be completed.

To further illustrate these steps a presentation will be available on the Kardan website later today: www.kardan.nl

About Kardan

Kardan is an international investment company based in Amsterdam with a focus on three sectors: Real Estate, Financial Services and Infrastructure. The company is primarily active in emerging markets in Central and Eastern Europe and China, 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. Kardan has a consistent track record of creating long-term shareholder value through active management of investments in the group companies and by leveraging on its business experience, financial resources and local and international network.

Total assets per June 30, 2008 amounted to EUR 5.0 billion, with revenues of EUR 329 million in the first half of 2008 (first six months 2007: EUR 275 million). The number of employees engaged by the group is approximately 13,500 as of 31 December 2007. Kardan is listed on NYSE Euronext Amsterdam and the Tel-Aviv Stock Exchange.

For further information please contact:

Jan Slootweg Management Board member Kardan NV Office +31 (0)20 305 0010