Amsterdam, June 16, 2011 – Kardan N.V. (“Kardan”), active in Real Estate, Water Infrastructure and Financial Services in emerging markets announces that the group’s retail lending subsidiary, TBIF Financial Services B.V. (“TBIF”), signed an agreement (the “Agreement”) to sell its 50% stake in the Russian banking business (the “Bank”) to the other shareholder in the Bank (“the Transaction”).

The structure of the Transaction envisages an initial payment of approximately EUR 40 million within a month from signing, subject to certain conditions, with the remainder of the price due on completion, expected by June 2012. Completion is subject to various conditions precedent and until completion TBIF continues to fully exercise its joint-control rights in the Bank.

The total consideration for the Transaction, including initial payment, dividends, last instalment and interest due on the last instalment, is approximately EUR 123 million, reflecting a multiple of more than two times equity based on March 31, 2011 shareholder’s equity of the Bank. Over the years, Kardan invested approximately Euro 100 million in the Bank. This sale, together with last year’s sale of a 16% interest in the Bank, generates accumulated proceeds of approximately Euro 160 million for Kardan.

The sale of the Bank is in line with Kardan’s strategy to create value and to realize returns by, among others, exiting its investments when deemed appropriate. The decision of TBIF to sell its stake in the Bank is based on the value of the Transaction, which represents an attractive offer for a Russian consumer bank in today's environment.

The accounting implications of the Transaction are still under investigation. However, based upon the positions as of March 31, 2011 and as a result of IFRS 3R according to which the 50% holding in the Bank was fully marked to fair value based upon the sale of 16% of the Bank in September 2010 (resulting in a capital gain of over EUR 50 million in 2010) and accounting for Kardan’s share in the profits of the Bank since then, the book value of the Bank for Kardan exceeds the value derived from this Transaction by approximately EUR 10 million. Consequently, Kardan is expected to record a loss of this amount in the form of goodwill and other intangible asset amortization.