Kardan N.V. — M&A Activity 2008

Apr 11, 2008

KARDAN INTENDS TO FURTHER SIMPLIFY HOLDING STRUCTURE IN REAL ESTATE SEGMENT

Amsterdam, April 10, 2008 – International investment company Kardan N.V. (Kardan) is currently in the process of investigating the possibilities to merge GTC Real Estate N.V. (GTC RE) into Kardan.

Kardan currently holds (directly and indirectly) a 64.3% stake in GTC RE, the holding through which Kardan's real estate activities are held. The proposed merger is in line with the strategy of Kardan to simplify the group structure and further increase its transparency. The intended merger will create a larger holding company, strengthening the equity and the value of the combined entity. There is no certainty if and when the merger will take place.

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., in China through GTC Real Estate China Ltd, and as recently announced in India. GTC RE's shares are listed on the TASE 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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