Kardan N.V. — M&A Activity 2016

Apr 8, 2016

AGREEMENT SIGNED WITH CONTRACTOR FOR PUMPED STORAGE PROJECT IN ISRAEL

Amsterdam, April 8, 2016 - Kardan N.V. ('Kardan' or 'the Company'), active in Real Estate, Water Infrastructure and Financial Services in emerging markets announces that Star Pumped Storage Ltd., in which Kardan's subsidiary Tahal Consulting Engineers Ltd. ('TCE') holds a 40.5% stake, has signed a principle construction agreement ('the Agreement') with a joint consortium, comprising Sinohydro Corporation (a subsidiary of Power China, one of the leading energy companies in China) and Alstom Hydro France (which was acquired by GE).

Star Pumped Storage Ltd. holds a licence to build and operate a 340 MW power plant in Kochav Hayarden, Israel, ("the Project") based on the pumped storage technology.

The Agreement encompasses a full EPC (engineering, construction and procurement) turn-key assignment for the Project, representing a total amount of NIS 1.7 billion (approximately EUR 394 million). In addition, an operating and maintenance agreement was signed with GE Renewable Energy Ltd. only, in the amount of NIS 16 million (approximately EUR 3.7 million) per year, for a period of up to 18 years, including possibilities to end earlier as stipulated in the agreement.

The terms of the two agreements are subject to the approvals of the banks financing the Project. In addition, the completion of both agreements is subject to completion of the financial closing for the entire project (which is expected in the third quarter of 2016).

Tahal expects that the early work (according to a separate agreement) will be started immediately, and that the main construction process of the Project will begin towards the end of 2016, taking approximately 52 months to finish (subject to the conditions precedent above, and obtaining appropriate extension from the Electricity Authority).

In addition, the board of directors of TCE has decided that TCE should sell part of its holdings in the Project, in order to continue developing the core areas and growth engines of Tahal Group.

After the completion of construction of the Project and obtaining a production license, the Project is expected to receive from the Electricity Authority payment for making permanent availability, production capacity, benefits and related services for the first 18 years of operation. Afterwards Star Pumped Storage can operate in accordance with tariff arrangements in force at the time, including selling electricity to private customers as a private power station. The Project"s expected annual revenues were calculated on the basis of the provisions of the conditional lincense and on the basis of the provisions of the regulatory tariff to a private electricity producer operating technology of pumped storage published by the Electricity Authority in its decision dated November 8, 2009. The Company estimates that such revenues will increase up to more than NIS 200 million (EUR 46 million) during the Project"s first 18 years of operation.

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 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 December 31, 2015 amounted to EUR 976 mn; revenues totaled EUR 216 mn in 2015. Kardan is listed on 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)"