Kardan N.V. — M&A Activity 2014

Dec 11, 2014

KARDAN'S WATER INFRASTRUCTURE SUBSIDIARY TAHAL SIGNS LARGE CONTRACT FOR PROJECT IN RUSSIA

Amsterdam, December 11, 2014 - Kardan N.V. ('Kardan' or 'the Company'), active in Real Estate, Water Infrastructure and Financial Services in emerging markets announces that today its indirectly held subsidiary Tahal Consulting Engineers Ltd. ('Tahal') signed an agreement regarding the planning and construction of a water treatment plant and pumping system in the city of Yakutsk, Russia ('the Project' and 'the Agreement', respectively). The total compensation for the Project is USD 67 million (including VAT) (approximately EUR 55 million), which will be paid during the expected duration of the Project (approximately 40 months).

A down payment of 15% of the mentioned total compensation of USD 67 million is expected to be paid to Tahal within 21 days from the date of signing the Agreement. Most of the funding for the project is provided by the European Bank of Reconstruction and Development ('EBRD') and the balance is funded by the Republic of Yakutsk.

As Yakutsk is one of the coldest cities in the world, it is necessary to use advanced technology to construct the facility including, inter alia, a pumping system that will be built on a river which is frozen for most of the year. The Project is a Turn Key project, which entails that Tahal has full responsibility until the water treatment plant is in operation.

Including this Agreement, Tahal Group B.V. has signed new orders totaling over USD 225 million during 2014, which have all been allocated to Tahal Group's backlog as first down payments have been made and / or there is no need to arrange for financing, completion of financial closing and / or obtaining any government approvals.

Tahal Group International B.V. ('TGI'), Kardan's water infrastructure company of which it holds 98%, focuses on executing water related projects worldwide through its two subsidiaries:

• a) Tahal Group B.V. ('Tahal Projects') focuses on water infrastructure projects and is engaged in the development and implementation of such projects, providing engineering design and supervision in these areas as well as focusing on projects geared towards agricultural development. Tahal Consulting Engineers Ltd., which has signed the Agreement described above, is wholly owned by Tahal Group BV.
• b) Tahal Group Assets B.V. focuses on developing water treatment facilities and as such is active in investing in income generating assets as well as in initiating and developing its own water treatment facilities.

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 (jointly "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 N.V.'s listings on NYSE Euronext Amsterdam and the Tel Aviv Stock Exchange 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 Group's ability to achieve its objectives and (v) from any of the risk factors specified in Kardan N.V.'s Annual Report and in the related "Periodic Report" (published by Kardan N.V. in Israel) published in April, 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 Asia (predominantly China), Africa and selected CEE and CIS countries. Its activities are mainly focused on three sectors that benefit from the rising middle class: Real Estate, Water Infrastructure and Banking & Retail Lending. Company headquarters are in the Netherlands. Kardan aims at holding controlling interests in its investments and is actively involved in the definition and implementation of their strategy through its local business platforms. Total assets as of September 30, 2014 amounted to EUR 1,013 mn; revenues totalled EUR 161 mn in the first nine months of 2014. Kardan is listed on NYSE Euronext Amsterdam and the Tel Aviv Stock Exchange.

For further information please contact:

Caroline Vogelzang Director Investor Relations Vogelzang@kardan.nl +31 (0)20 305 0010

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