Kardan N.V. — M&A Activity 2011

Jan 27, 2011

KARDAN REAL ESTATE SUBSIDIARY IN CHINA SELLS STAKE IN PROJECT FOR A PROFIT OF EUR 7 MILLION

Amsterdam, January 27, 2011 - Kardan N.V. ("Kardan"), active in Real Estate, Financial Services and (Water) Infrastructure in emerging markets announces that its wholly owned subsidiary GTC Real Estate China Ltd. ("GTC China") signed an agreement to sell its 50% stake in a real estate project in Hangzhou, China.

According to the agreement signed on January 26, 2011, GTC China will sell its 50% holding in the real estate project company Hangzhou International Financial Center Co.Ltd. ("HIFC") to a Chinese real estate and investment company, Rich Holding Group Co. Ltd. for a consideration of RMB 269 million (approximately EUR 31 million). The HIFC plans call for a mixed-use project, which is in its design phase. GTC China acquired the stake in HIFC in the latter half of 2008.

The sale of the shares is subject to conditions precedent, among others regulatory approvals. The transaction is expected to be closed in the first quarter of 2011.

In line with its strategy to gradually focus more on shopping mall development due to the expected significant increase of consumption in China, GTC China has decided to sell its stake in HIFC which has important office and luxury apartment development components.

The transaction is expected to result in a gain for GTC China of approximately EUR 7 million net of withholding tax on the transfer of proceeds out of China, which for Kardan translates in an approximate gain of EUR 5 million (after IFRS adjustments on the holding level).

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)"