Kardan N.V. — M&A Activity 2011

Jan 27, 2011

KARDAN SELLS ITS BANKING OPERATIONS IN UKRAINE (VAB BANK)

Amsterdam, January 27, 2010 - Kardan N.V. ("Kardan"), active in Real Estate, Financial Services and (Water) Infrastructure in emerging markets announces that TBIF Financial Services B.V. ("TBIF"), an indirect subsidiary of Kardan, signed agreements to sell its stake in VAB Bank, its Ukrainian banking operation ("the Transaction"), to a group of international investors represented by Troika Dialog investment bank.

TBIF has decided to sell its stake in VAB Bank following a strategic review. TBIF has supported VAB Bank throughout 2010 in effectuating the required capital increases, consequently increasing its holding to 71% from 49% as at the beginning of 2010. In December 2010, the shareholders meeting of VAB Bank approved the required capital increase of UAH 550 million (approximately EUR 53 million), which led to TBIF currently holding an 84% stake of VAB Bank.

The consideration for the Transaction amounts to UAH 550 million (approximately EUR 53 million), reflecting the total capital increase that was approved in December 2010, and which total was injected fully by TBIF.

The Transaction was advised and structured by Troika Dialog, a leading Russian investment bank, representing the group of international investors.

As part of the Transaction, TBIF has signed an agreement to sell VAB Leasing to VAB Bank, pending certain conditions still to be met.

As a result of the Transaction, Kardan's current exposure to VAB Bank will not be affected. Based upon the financial statements as of September 30, 2010, however, Kardan is expected to realize a loss of approximately EUR 30 million.

Closing of the Transaction is expected in the coming days.

About Kardan

Kardan is an active international investment company focused on emerging markets in three sectors that benefit from the rising middle classes: Real Estate, Financial Services and (Water) Infrastructure. The company operates in seven segments throughout emerging markets, primarily 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, 2010 amounted to EUR 5.9 billion (December 31, 2009 and September 30, 2009 respectively EUR 5.6 billion and EUR 5.5 billion) with revenues of EUR 489 million in 9M-2010 (EUR 691 million in 2009 and EUR 518 million in 9M-2009).

For further information please contact:

Caroline Vogelzang Director Investor Relations Office +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)"