Amsterdam, 29 December 2008. International investment company Kardan N.V. (Kardan) announces that its 73% owned group company Kardan Israel Limited has announced today that the intended merger between its subsidiary Kardan Real Estate Ltd. and Dankner Investments Ltd., a fully owned subsidiary of Delek Real Estate will not come into effect. The intended merger was published on 25 March 2008.

The intended merger was subject to the fulfilment of certain conditions precedent by 23 December 2008. Since not all of the conditions precedent were met, the purchase agreement was automatically cancelled.

About Kardan

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 30 September 2008 amounted to EUR 5.2 billion, with revenues including financial income of EUR 710 million in the first nine months of 2008 (first nine months 2007: EUR 545 million). The number of employees engaged by the group is approximately 16,900 as per 30 June 2008. Kardan is listed on NYSE Euronext Amsterdam and the Tel-Aviv Stock Exchange.

For further information please contact:

Jan Slootweg    

Management Board member Kardan N.V.

Office    +31 (0)20 305 0010

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