Kardan N.V. — M&A Activity 2011

May 26, 2011

KARDAN SUBSIDIARY GTC S.A. TO SELL 50% STAKE IN RENOWNED SHOPPING CENTER TO UNIBAIL RODAMCO

Amsterdam, May 26, 2011 - Kardan N.V. ("Kardan"), active in Real Estate, Water Infrastructure and Financial Services in emerging markets announces that Globe Trade Centre S.A. ("GTC SA"), the leading CEE real estate developer in which Kardan holds a 27% stake, has signed an agreement to sell its 50% stake in Galeria Mokotow in Warsaw to an affiliate of Unibail Rodamco S.E. The transaction values the asset at EUR 475 million. The sale will generate approximately EUR 110 million of cash for GTC SA.

GTC S.A. signed an agreement for the sale of a 50% stake in its landmark development - Galeria Mokotów, based on an asset value of EUR 475 million. The purchaser is an affiliate of Unibail Rodamco S.E.– the current co-owner and manager of the shopping center. The transaction will strengthen GTC SA's financial position even more and facilitate future developments.

"The value of the transaction demonstrates the high quality of GTC SA's assets and its ability to generate profits upon their disposal as outlined in its strategy." said Eli Alroy, Chairman of the GTC SA Supervisory Board. "The transaction is in line with GTC SA's strategy of rebalancing its property portfolio, including the sale of mature assets and reinvesting in further expansion. As the real estate investment market continues to improve, we proceed with recycling of capital and plan new investments in the commercial sector in Poland".

The final execution of the transaction is subject to standard closing conditions and regulatory approvals.

The estimated profit from this transaction for Kardan is approximately EUR 1 million.

Galeria Mokotow is a prime retail and entertainment center located in Warsaw. The property was completed in 2000 and remains a landmark development in the retail sector in Poland. The mall comprises 62,000 sqm of net rentable retail space, a number of renowned shops and service points, as well as a multiplex cinema. The rental income (100%) of Galeria Mokotow in 2010 amounted to EUR 24.8 million.

DISCLAIMER

This press release contains forward-looking statements and information, for example concerning the financial condition, results of operations, businesses and potential exposure to market risks of Kardan N.V. and its group companies ("Kardan Group").All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements (including "forward looking statements" as defined in the Israeli Securities Law).. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. These forward-looking statements are identified by the use of terms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''intend'', ''may'', ''plan'', ''objectives'', ''outlook'', ''probably'', ''project'', ''will'', ''seek'', ''target'', ''risks'', ''goals'', ''should'' and similar terms and phrases. A variety of factors, many of which are beyond Kardan Group's control, affect our operations, performance, business strategy and results and could cause the actual results, performance or achievements of Kardan Group to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For Kardan Group, particular uncertainties arise, amongst others but not limited to and not in any order of importance, (i) from dependence on external financing with the risk that insufficient access to capital threatens its capacity to grow, execute its business model, and generate future financial returns (ii) from concentration of its business in Central Eastern Europe and China as a result of which Kardan Group is strongly exposed to these particular markets (iii) from risks related to the financial markets as a result of Kardan's listings and (iv) from it being a decentralized organization with a large number of separate entities spread over different geographic areas in emerging markets, so that Kardan Group is exposed to the risk of fraudulent activities or illegal acts perpetrated by managers, employees, customers, suppliers or third parties which expose the organization to fines, sanctions and loss of customers, profits and reputation etc. and may adversely impact

Kardan's ability to achieve its objectives and (v) from any of the risk factors specified in Kardan's Annual Report 2010 and in the "Periodic Report for 2010"published by Kardan N.V. in Israel on March 31, 2011 and which is also available at the Kardan website. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Kardan N.V. does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.

About Kardan

Kardan identifies and develops assets in promising emerging markets, mainly in the CEE, CIS and China. Its activities are mainly focused on three sectors that benefit from the rising middle class: Real Estate, Water Infrastructure and Retail Lending. In addition, the company has some investment activities in Israel. Company headquarters are in the Netherlands. Kardan aims at holding controlling interests in its investments and, through the development of local business platforms, is actively involved in the definition and implementation of their strategy. Total assets as of December 31, 2010 amounted to EUR 6.0 billion; revenues totalled EUR 667 million in 2010. Kardan is listed on NYSE Euronext Amsterdam and the Tel-Aviv Stock Exchange

For further information please contact: Caroline Vogelzang Director Investor Relations +31 (0)20 305 0010 Vogelzang@kardan.nl

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)"