Kardan N.V. — M&A Activity 2008

Feb 18, 2008

PRESS RELEASE

KARDAN TO DEVELOP ANOTHER REAL ESTATE PROJECT IN THE CITY OF SHENYANG, CHINA

Amsterdam, February 18, 2008. International investment company Kardan N.V. (Kardan) announces that its real estate subsidiary GTC Real Estate N.V (GTC RE) has won a tender for the acquisition of 260,464 sqm of land with approximately 650,000 sqm of building rights in the city of Shenyang, China, bringing the total space under development in China to more than 2.6 million sqm.

The project will be developed together with Lucky Hope Group. GTC Real Estate China Limited (GTC RE China) and Lucky Hope will each have a 50% stake in the project.

GTC RE China intends to develop a mixed use project, mainly residential, including at least 50,000 sqm of commercial space. The consideration for the land amounts to approximately EUR 35 million and GTC RE estimates that the total cost of the project will amount to approximately EUR 150 million. The construction is expected to start during the second half of 2008 and is estimated to take four years.

Shenyang is the capital of the Liaoning province and is considered an important industrial center in China. Shenyang is the transportation and commercial centre of China's Northeastern region and has a population of 7.2 million.

In terms of urban population it is the largest city in the North-eastern region and among the top ten largest cities in China.

With reference to the press release published on 7 February 2007 regarding the memorandum of understanding with the Shenyang Puhe New City Administration Authority no change of zoning of the land from agricultural to residential use has been announced to date. Due to this delay, Kardan believes any change in the zoning to be unlikely.

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 Tel Aviv Stock Exchange and are included in several of its major indices. Kardan currently holds (directly and indirectly) a 64.6% stake in GTC RE.

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, 2006 amounted to EUR 2.2 billion, with revenues of EUR 588 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.

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