Kardan N.V. — M&A Activity 2010

Feb 1, 2010

KARDAN SIGNS BIGGEST WATER INFRASTRUCTURE CONTRACT IN ITS HISTORY

Amsterdam, January 29, 2010 - Kardan N.V. ("Kardan"), active in Real Estate, Financial Services and (Water) Infrastructure in emerging markets announces that its subsidiary Tahal signed a contract with the Ministry of Public Works in Angola to execute an integrated agricultural and regional development project. The signing of this agreement is a major milestone in the project that was announced in July 2008. The project includes among others, the development and construction of the water supply, sewage and drainage system for a new rural settlement and irrigation of farm land. Total revenues to be generated by the project will amount to approximately EUR 143 million.

The project is expected to start in the first half of 2010 and will be completed in 3 years thereafter. The project is located south east of the capital Luanda, near the Quiminha Dam in the river Bengo and is aiming to develop fertile land increasing local production of agricultural products.

The start of the development works of the Quiminha Project is still subject to certain conditions precedent among others financial closing and the receipt by Tahal of down payment of 15% of the expected revenue.

The project is a so called EPC project: Tahal will be responsible for the engineering, procurement of materials and the construction of the project which will mainly be executed by subcontractors. Furthermore, Tahal coordinated the structuring of the funding of the project on behalf of the Angolan government.

The government of Angola and commercial banks providing the funding for the project signed agreements on January 28 and the financial closing of the project is expected in the first half of 2010.

Tahal is already active in the Angolan capital of Luanda where it is constructing a water distribution system. Tahal considers Africa as an important continent for expansion of its activities. In addition to Angola, Tahal has additional projects in Africa that are currently being executed in Ghana, Botswana and Ethiopia.

Tahal is active in (Water) infrastructure in two divisions, Tahal Assets and Tahal Projects. Tahal Assets is developing and investing in water related assets such as water and waste water treatment plants, water supply and sewage systems and desalination plants. Tahal Projects is active in planning, engineering, procurement and construction of projects.

About Kardan

Kardan, with headquarters in Amsterdam focuses on three main fields of activities: Real Estate, Financial Services and (Water) Infrastructure. The company operates in seven segments primarily 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.

Kardan is listed on NYSE Euronext Amsterdam and the Tel Aviv Stock Exchange.

Total assets as of September 30, 2009 amounted to EUR 5.5 billion (9M 2008: EUR 5.2 billion), with revenues of EUR 548 million in 9M 2009 (9M 2008: EUR 355 million).

For further information please contact: Jan Slootweg Management Board member Kardan NV Office +31 (0)20 305 0010 www.kardan.nl

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