Amsterdam, 10 September 2007 – Further to a publication in the Israeli newspaper The Globes yesterday, Kardan N.V. (Kardan) issues the following statement.

Negotiations are being held between Kardan Financial Services ("KFS"), a subsidiary controlled by Kardan and The Israel Discount Bank ("Discount Bank") for the possible purchase of 10% of newly issued KFS shares by Discount Bank.

The transaction between the parties will also include a credit facility that will be granted by Discount Bank to KFS.

The negotiations between the parties are still ongoing. Certain issues, such as the value at which Discount Bank will invest in KFS, have not yet been agreed upon.

About Kardan

Kardan is an international investment company with a focus on three sectors: Real Estate, Financial Services and Infrastructure. Kardan is primarily active in Central and Eastern Europe, where it conducts most of its activities. Kardan holds controlling interests in its main businesses and is actively involved in the definition and implementation of their strategy. Total assets per December 31, 2006 amounted to EUR 2.2 billion, with revenues of EUR 588 million. The number of employees engaged by the group is approximately 7,980 as of December 31, 2006. Kardan is listed on Euronext Amsterdam and the Tel-Aviv Stock Exchange.

For further information please contact:

Citigate First Financial
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Floor van Maaren
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