Amsterdam, January 17, 2008. International investment company Kardan N.V. (Kardan) announces that its real estate subsidiary GTC Real Estate N.V (GTC RE) has won a tender  for the acquisition of 104,000 sqm of land with up to approximately 290,000 sqm of building rights in the city of Changzhou, China. This will be GTC RE’s first development in Changzhou, the fourth city in which GTC RE has established operations in China.

The project will be developed together with Lucky Hope and another partner from Hong Kong who is already active in Changzhou. GTC Real Estate China Limited (GTC RE China) and Lucky Hope will each have a 45% stake in the project and the other partner 10%.

GTC RE China intends to develop on the land a mixed use project, mainly residential, including approximately 30,000 sqm of commercial space. The consideration for the land amounts to approximately EUR 18.4 million and GTC RE estimates that the total cost of the project will amount to approximately EUR 95 million. The construction is expected to start during 2009 and is estimated to take 3 years.

Changzhou is centrally located in one of the richest provinces in China, Jiangsu province, with a population of 3.5 million, located 162 km west of Shanghai and 103 km south of Nanjing.

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., in China through GTC Real Estate China Ltd, and as recently announced in India. GTC RE’s shares are listed on the Tel Aviv Stock Exchange and are included in several of its major indices. Kardan currently holds (directly and indirectly) a 64.6% stake in GTC RE.

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

Uneke Dekkers                                      mobile +31 (0)6 5026 1626

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