Kardan N.V. — M&A Activity 2008

Jul 15, 2008

PRESS RELEASE

KARDAN ENTERS UKRAINIAN REAL ESTATE MARKET

Amsterdam, 15 July 2008 - International investment company Kardan N.V. (Kardan) announces that its real estate subsidiary Globe Trade Centre S.A. (GTC SA) has signed an agreement to acquire shares in a company that is active in the Ukraine and Russia. This is the first transaction on the Ukrainian real estate market, where Kardan is already active with financial services.

GTC SA will purchase, through its subsidiaries, 10% of Europort Ltd.(Europort), a company active in real estate investments in the CIS region (Commonwealth of Independent States), for a total consideration of approximately EUR 3.5 million. In case Europort acquires another land plot in Ukraine or Russia, GTC SA will increase its stake to 20% for an additional consideration of EUR 4.4 million.

Furthermore, an agreement was signed to acquire almost 50% of Europort Investments (Cyprus) 1 Limited ("Europort Cyprus"), a subsidiary of Europort. Europort Cyprus is active in the Ukrainian real estate sector and is developing a combined offices and logistics project of 120,000 sqm. in Odessa, Ukraine. GTC SA will pay the nominal value for the shares, amounting to approximately EUR 20,000. In addition, GTC Ukraine will grant Europort Cyprus a loan in the amount of EUR 7.9 million. The remainder of the Europort Cyprus shares will continue to be held by Europort.

GTC SA is listed on the Warsaw Stock Exchange and is included in the WIG20, MSCI, GPR 250 and CAIB REX indices. GTC Real Estate N.V. (GTC RE), the real estate division of the Kardan Group, holds a 46.1% stake in GTC SA. GTC RE is active in Europe through GTC SA and GTC Investments B.V., in China through GTC Real Estate China Ltd, and as recently announced in India. GTC RE's shares are listed on the Tel-Aviv Stock Exchange and are included in several of its major indices.

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 December 31, 2007 amounted to EUR 4.3 billion, with revenues of EUR 774 million. The number of employees engaged by the group is approximately 13,411 as of December 31, 2007. Kardan is listed on Euronext Amsterdam and the Tel-Aviv Stock Exchange.

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