Amsterdam, November 24, 2017 – Following the press release dated November 21, 2017 in which Kardan N.V. (‘Kardan’ or ‘the Company’) announced it received a letter from the representatives of the trustee of debenture holders series B (‘the Trustee’ and ‘the Trustee Letter’), the Company now announces that it has replied the Trustee Letter.

In its response, the Company clarified that so far it has fulfilled all its obligations towards the debenture holders (series A and B) (‘the Debenture Holders’) stemming from the 2015 Debt Settlement. In this respect, the Company repaid all payments to the Debenture Holders and met the financial covenants determined in the 2015 Debt Settlement. Further, the Company clarified that the value of all the assets the company disposed so far, and the value of Tahal Group International B.V. (‘TGI’) under negotiations in relation to the intended sale, was significantly higher than the forecasts presented in the 2015 Debt Settlement. In relation to this, the Company noted that the complexity of the negotiations and the complexity of TGI as well as other circumstances not within the Company’s control, resulted recently to a change in its estimated date of completion of the sale of TGI and consequently the payment of the consideration to the Debenture Holders. Therefore, there is a significant gap between the way the financial position of the Company has been presented in the Trustee Letter, including the statements regarding significant deterioration in the Company’s operations on the one hand, and the Company’s actual financial position on the other.

In addition, the Company substantiated in its response that most of the reasons detailed by the Trustee in its letter as support to its claim regarding the deterioration in the financial position of the Company are incorrect. And that accordingly the Company still estimates that the value of its assets exceeds its liabilities, and that a prudent and professional sales process of the assets is likely to result in full repayment of the Company's debts. The Company also noted that it faces a challenge in meeting the upcoming repayment to its debenture holders and therefore it has approached the trustees. However, this challenge cannot be considered as a significant deterioration of the financial position of the Company.