Kardan N.V. — Share Issue/Capital Change 2012

Jun 25, 2012

KARDAN SUBSIDIARY GTC SA FINALIZED RIGHTS ISSUE INCREASING EQUITY BY APPROXIMATELY EUR 104 MILLION

Amsterdam, June 25, 2012 – Kardan N.V. ("Kardan"), active in Real Estate, Water Infrastructure and Financial Services in emerging markets, announces that Globe Trade Centre SA ("GTC SA") , its 27.75% indirectly held subsidiary, active in Real Estate in Central and South East Europe, announced on June 22, 2012 that its rights issue was more than two times oversubscribed.

Through the rights issue GTC SA strengthens its share capital by PLN 445 million (approximately EUR 104 million), before transaction costs. The rights issue is an element of the strategic plan of GTC SA to deleverage and increase its liquidity.

Kardan in accordance with its intention as announced earlier, participated in the rights issue through its fully owned subsidiary GTC Real Estate Holding B.V. ("GTC Holding") to its pro rata share of 27.75%. As all the rights have been exercised, GTC Holding's share in the capital of GTC SA remains 27.75%.

GTC SA

GLOBE TRADE CENTRE S.A. (GTC SA) is one of the leading developers in New Europe and was established in 1994 in Warsaw. It currently operates in Poland, Hungary, the Czech Republic, Romania, Serbia, Croatia, Slovakia, Bulgaria, Russia and Ukraine.

GTC SA develops projects and manages completed properties in three key sectors of real estate: office buildings and parks, retail and entertainment centers and residential.

GTC SA has developed approximately 850,000 sqm of net commercial space and 290,000 sqm of residential space and is currently the owner of completed commercial property with a combined net area of about 647,000 sqm (in which GTC SA's share amounts to 596,000 sqm). GTC SA also holds landbank designated for future development, with approximately 874,000 sqm of plots of land designated for commercial use and approximately 1,815,000 sqm of plots of land designated for residential use, of which the Group's proportionate interest therein amounts to approximately 800,000 sqm and approximately 1,427,000 sqm, respectively. GTC SA's total assets exceed EUR 2.4 billion.

GTC SA's shares are listed on the Warsaw Stock Exchange on the prestigious WIG20 index. The company's shares are also included in the international Dow Jones STOXX Eastern Europe 300 index, the GPR250 index, which comprises the 250 biggest and most liquid real estate companies of the world, and the FTSE EPRA/NAREIT Emerging Index. Among GTC SA's shareholders are many of the biggest Polish and international institutional investors.

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 2011"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. 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 March 31, 2012 amounted to EUR 4.3 billion; revenues totalled EUR 85 million in Q1 - 2012. Kardan is listed on NYSE Euronext Amsterdam and the Tel-Aviv Stock Exchange.

The Q2 – 2012 and H1 - 2012 results of Kardan N.V. will be published on August 30, 2012.

For further information please contact: Jan Slootweg Member of the Executive Committee +31 (0) 203050010 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)"