Amsterdam, 31 December 2007 – Following the press releases dated 10 and 25 September 2007, international investment company Kardan N.V. (Kardan) announces that it has signed the agreement with Israel Discount Bank Ltd (Discount Bank) for the purchase of 11% in Kardan Financial Services (KFS), a Kardan subsidiary, through a capital increase of EUR 55.6 million. In addition, Discount Bank will provide KFS with credit facilities of EUR 225 million. The EUR 55.6 million consideration for the shares reflects a post-transaction valuation of KFS of EUR 505.6 million.

As stated in the press release dated 25 September 2007, Discount Bank will provide KFS with various credit facilities of which EUR 175 million have maturities ranging from 6 to 11 years and for which KFS will provide certain pledges and will maintain certain covenants. KFS will also receive an additional facility of EUR 50 million maturing in 11 years. Kardan will guarantee the EUR 50 million facility, and will provide a conditional guarantee of EUR 50 million for the other facilities. 

The equity investment of Israel Discount Bank in KFS reflects a significant increase in value of KFS and an estimated gain for Kardan of EUR 30 million at completion.

KFS intends to primarily use the funds to further develop its activities, capitalizing on the strong growth opportunities in the financial services sector in the CEE region. Part of the funds will also be used to refinance certain loans. 

Discount Bank is the third largest bank and a leading financial group in Israel. In Israel, the Discount Bank Group is comprised of commercial banks and financial services companies active in credit cards, investment banking, portfolio management, trustee services and leasing. Discount Bank operates internationally through a network of subsidiaries, branches and representative offices in North America, Europe and Latin America, with a focus primarily on private banking and commercial finance. As of 31 December 2006, total assets aggregated to USD 38.5 billion. 

KFS is the holding company of TBIF Financial Services B.V. (TBIF) and TBIH Financial Services Group N.V. (TBIH). Kardan holds a direct stake of 90% in KFS, which in turn holds 90.38% and 40% in TBIF and TBIH respectively. TBIF is a leading retail financial services provider (banking, leasing, consumer finance, mortgages and asset management) active in Bulgaria, Romania, Russia and Ukraine. TBIH is a leading provider of insurance and pension services in several CEE and CIS countries. TBIH is jointly controlled by Kardan and Wiener Städtische Versicherung AG Vienna Insurance Group.

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 10

Claire Verhagen                         mobile +31(0)6 50 51 63 25

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