Amsterdam, 20 October 2008. International investment company Kardan N.V. (Kardan) announces that its wholly owned infrastructure subsidiary, Tahal Group International B.V. (Tahal), has signed an agreement with two companies in Panama for the sale of electricity to be produced by a hydro power plant in the Chiriqui river.

Tahal owns 86.5% of the shares of Hydro Caisan S.A. (Hydro Caisan), a company in Panama, which has a 50 year franchise for the operation of a hydraulic power plant in the Chiriqui river in Panama. The construction of the power plant is planned to commence in 2009, with total estimated investment of approximately EUR 112 million.

Management estimates that construction costs will be funded through 30% equity and 70% debt. It is expected that the total annual revenue generated through the supply of electricity by the power plant will amount to approximately EUR 18.5 million.

On 17 October 2008 Hydro Caisan signed an agreement for the sale of electricity to two distribution companies. The agreement is concluded for a period of 10 years starting in 2013, when the power plant is expected to be operational.

Tahal is the holding company of the infrastructure activities of Kardan. Tahal operates internationally in the fields of investments, planning, design, construction and project management as well as in turnkey and ‘build operate transfer’ projects. Approximately 90% of the activities of Tahal are directly related to water and sewage systems.

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