Amsterdam, February 1, 2008. International investment company Kardan N.V. (Kardan) announces that its real estate subsidiary GTC Real Estate N.V. (GTC RE) will purchase an additional land plot in the city of Changzhou, China, located next to the land plot that was acquired earlier this year. This implies an additional 90,035 sqm of land and approximately 252,000 sqm of building rights to be added to the project announced on January 17, 2008.

With this acquisition, the original land plot (of 104,000 sqm with building rights up to approximately 290,000 sqm) will be increased to a total of 194,035 sqm with building rights up to approximately 542,000 sqm. The consideration for the new land amounts to approximately EUR 16 million, bringing the total consideration for the land to EUR 34.4 million.

The project is mainly residential but will include approximately 68,000 sqm of commercial space (originally planned for 30,000 sqm). The costs of the total project will amount to approximately EUR 185 million. Due to the acquisition of the additional land site, the construction is expected to start earlier than planned, during the second half of 2008, and is estimated to take 5 years.

The enlarged project will be developed by GTC Real Estate China Limited (GTC RE China) (45%), Lucky Hope (45%) and another partner from Hong Kong who is already active in Changzhou (10%).

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 based in Amsterdam with a focus on three sectors: Real Estate, Financial Services and Infrastructure. The company is primarily active in emerging markets in Central and Eastern Europe and China, 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. Kardan has a consistent track record of creating long-term shareholder value through active management of investments in the group companies and by leveraging on its business experience, financial resources and local and international network.

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 5051 6325

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