Amsterdam, 16 May 2007 – Kardan N.V. (Kardan) announces that its group company TBIF Financial Services B.V. (TBIF) has signed an agreement for the purchase of 90% of VIP Rent Foreign Enterprise (VIP), a Ukrainian company that operates a car rental and operational lease business in Ukraine under the Avis brand, with put and call options on the remaining 10%.

Under the terms of the agreement, TBIF will do the acquisition by itself or in cooperation with Dan Vehicle & Transportation DRT Ltd. (Dan), which operates under the Avis brand in Israel, if Dan will receive the approval as set out below. If Dan will join the acquisition, TBIF will take a 66% stake in VIP and Dan 34%. TBIF plans to offer a 20% stake to VAB Group, its main investment holding company in the Ukraine (48.65% owned by TBIF).

The consideration for the 90% stake amounts to EUR 10 million, which will be paid by TBIF and Dan proportionally to their stakes. The consideration for the option to acquire the remaining 10% of VIP during the period between 1 July 2010 and 30 June 2011 amounts to EUR 1.5 million.

Avis Ukraine is one of the most active operational lease companies in the Ukraine, with around 160 clients and 1,200 leased cars. The acquisition will strengthen TBIF´s presence in the leasing market in the Ukraine and will enhance its expertise in the operational lease segment.

Closing of the transaction is subject to various conditions, including due diligence and the approval of the Avis Europe franchisor and third party lenders.

The purchase by Dan is subject to corporate and regulatory approvals, including the approval of the general meeting of Dan. In the event that the necessary approvals for the cooperation are not received, TBIF will purchase VIP without the cooperation of Dan.

Furthermore, TBIF and Dan intend to establish a joint venture that will engage in acquiring leasing and short term rental activities in CEE. The joint venture will be 66% held by TBIF and 34% by Dan. The acquisition of VIP is the first transaction under this joint venture. The establishment of the joint venture is also subject to the approval of the general meeting of Dan, as well as to signing a detailed agreement between the parties.

TBIF is a leading retail financial services provider (including banking, leasing, consumer finance, mortgages and asset management) in several CEE countries.