Kardan N.V. — M&A Activity 2009

May 26, 2009

NEW ORDER FOR KARDAN'S INFRASTRUCTURE SUBSIDIARY

Amsterdam, 26 May, 2009 – Kardan, active in Real Estate, Financial Services and (Water) Infrastructure in emerging markets, announces that its (water) infrastructure division Tahal has been granted a licence to build an electricity generating facility, providing up to 300 megawatt of electricity to the Israel Electric Corporation.

The licence, won by Tahal Water Energy Ltd. (Tahal Water Energy), an 81% (in) direct subsidiary of Kardan, will enable the company to build a "Pump Storage" power plant in the "Kochav Hayarden" area near the Jordan valley. The total expected investment amounts to approx. EUR 225 million and building the power station is estimated to take three years.

The licence has been granted under the condition that Tahal is able to arrange funding for the project. The funding has to be in place within 18 months from the day the licence was granted. In addition, Tahal may decide to withdraw from the project in case it takes the view that the estimated turnover is not in line with current projections, depending on the final terms to be set by the Israel Electricity Authority.

The technique of this power plant, known as 'Pump Storage', enables a better utilization and more effective management of the electrical system. The electricity is generated from energy created by 'falling water': water available in an upper reservoir falls down into a lower reservoir, creating energy during peak hours of electricity demand when electricity tariff is high. The water in the upper reservoir is brought there by pumping it from the lower reservoir during off-peak hours when demand and electricity tariff are much lower.

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

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 December 31, 2008 amounted to EUR 5.3 billion, with revenues of EUR 492 million in 2008 (2007: EUR 297 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.