Amsterdam, 19 November 2007 – International investment company Kardan N.V. (Kardan) announces that it will increase its direct and indirect stake in GTC RE from 61.58% to 65.71%. This increase follows the conversion of NIS 143,183,170 par value series A convertible debentures that Kardan holds in its real estate subsidiary GTC Real Estate N.V. (GTC RE) into 8,879,426 shares.

With this capital increase, Kardan emphasizes its believe in the growth potential of GTC RE. In addition the conversion will improve the equity ratio of GTC RE, which will allow it to raise additional funds on better terms thereby facilitating its future growth. GTC RE, the real estate division of the Kardan Group, holds a 46.1% stake in GTC SA, one of the largest real estate developers in CEE. GTC RE is active in Europe through GTC SA and GTC investments B.V., and in China through GTC Real Estate China Ltd. GTC RE’S shares are listed on the Tel Aviv Stock Exchange and are included in several of its major indices.

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

phone +31 (0)20 575 40 78

Floor van Maaren
mobile +31(0)6 29 59 77 46