Kardan N.V. — M&A Activity 2009

Jun 16, 2009

RESTRUCTURING OF KARDAN'S INSURANCE ACTVITIES COMPLETED

Amsterdam, 16 June 2009 – Following the press release dated 23 December 2008, Kardan, active in Real Estate, Financial Services and (Water) Infrastructure in emerging markets, announces the completion of the sale by its group company, TBIH Financial Services Group N.V. (TBIH), of its insurance activities in Bulgaria, Albania, Macedonia and Kosovo to Vienna Insurance Group (VIG), the majority shareholder (60%) of TBIH.

The transaction is completed following the receipt of the necessary regulatory approvals. Kardan is expected to recognize a gain in the amount of approximately EUR 10 million in the second quarter of 2009. The calculation of this gain is based on March 31, 2009 figures. With respect to the part of the transaction already completed in 2008, Kardan recognized a gain of EUR 9 million in the fourth quarter of 2008.

About Kardan

Kardan is based in Amsterdam with a focus on three sectors: Real Estate, Financial Services and (Water) 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 divisions 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 March 31, 2009 amounted to EUR 5.5 billion, with revenues of EUR 169 million in Q1 2009 (Q1 2008: EUR 95 million). The revenues for 2008 amounted to EUR 492 million (2007: EUR 207 million). The number of employees engaged by the group is approximately 15,000 as of December 31, 2008 Kardan is listed on NYSE Euronext Amsterdam and the Tel-Aviv Stock Exchange.

"This press release contains regulated information (gereglementeerde informatie) as defined in the Dutch Act on Financial Supervision (Wet op het financieel toezicht)"