Amsterdam, 20 March 2007 – Kardan N.V. (Kardan) announces that its group company TBIH Financial Services Group N.V. (TBIH) has signed an agreement to purchase a 58.2% stake in Ray Sigorta A.Ş. (Ray Sigorta), a Turkish insurance company, for a consideration of USD 81.5 million.

Ray Sigorta holds a 3% market share of the Turkish non life insurance market, with gross written premiums in 2006 of approximately USD 184 million. The purchase of the company is in line with TBIH's strategy to be active in countries that are characterized by low insurance penetration. Turkey is one of the fastest growing insurance markets in Europe. Moreover, the Turkish market is an attractive target due to its size (population of 70 million).

TBIH is buying the stake from the majority shareholders of Ray Sigorta, the Turkish company Doğan Şirketler Grubu Holding A.Ş. (Doğan). During the course of 2010 and 2011, Doğan will have the option to sell its remaining 20% holding in Ray Sigorta to TBIH, at the current transaction price increased by LIBOR.

The remaining 21.8% Ray Sigorta shares are traded at the Istanbul Stock Exchange. TBIH expects that, within the framework of the transaction, it will be required to make a tender offer for these publicly listed shares. This would require an additional investment of up to USD 30.5 million.

In addition, TBIH agreed to increase the capital of Ray Sigorta in the amounts necessary to meet the applicable regulatory requirements, which TBIH estimates to be between USD 17 million and USD 30 million.

The closing of the transaction is subject to a confirmatory due diligence review by TBIH and receipt of regulatory approvals.

TBIH is a subsidiary of Kardan Financial Services B.V. (KFS). TBIH is a leading retail financial services provider active in several CEE and CIS countries.