Amsterdam, February 27, 2019 - Kardan N.V. (‘Kardan’ or ‘the Company’), wishes to update and clarify, further to an article published in the Israeli press, that advanced negotiations regarding the sale of its holdings in Tahal Group International B.V. ("TGI") are not advancing, and that Kardan is working to advance negotiations with a number of other parties regarding this sale transaction.

In view of the initial stages of negotiations conducted by the Company, as well as the lack of certainty of completing a transaction in general, and in view of timetables agreed upon with the representatives of the debenture holders in particular, the option to include a provision in the arrangement with debenture holders to distribute TGI shares to the debenture holders as repayment of the Company's debt is being considered.

It should be emphasized that as of the date of this press release, the option of distributing TGI shares is being considered as one of the options at hand, and that efforts to sell TGI are being continued. In addition, it is emphasized that as of the date of this press release, the conditions and instructions regarding a possible distribution of TGI shares to debenture holders have not yet been received, the required approvals have not yet been obtained and there is therefore no certainty that the arrangement put forward for approval to the meetings of debenture holders will include such a provision.