Amsterdam, December 15, 2011 – Kardan N.V. (“Kardan” or “the Company”), active in Real Estate, Water Infrastructure and Financial Services in emerging markets, announces that as of today its subsidiary, GTC Real Estate Holding B.V. (“GTC RE”) will initiate a plan to purchase Kardan Debentures (“the Plan”) listed on the Tel Aviv Stock Exchange (“TASE”). Under the Plan, GTC RE could purchase up to an amount of EUR 50 million, during a period of one year starting on December 15, 2011.

The Supervisory Board of Kardan has approved the Plan yesterday, which is in line with the Company’s strategy to decrease the leverage on the holding and intermediate holding company levels. The Plan will be funded by the existing cash reserves of the Company and GTC RE.

The debentures can be purchased both through (daily) transactions executed on TASE and transactions outside of the stock exchange (over the counter transactions).

Execution of the Plan will not result in any taxes payable.

Kardan will provide progress updates to the market on a monthly basis by means of a press release. In the event of purchases within the month, (an) immediate report(s) will be posted on the Kardan corporate website, under Media / News/ Immediate Reports.

In November 2008, Tahal Group International B.V. (“TGI”), the fully owned water infrastructure subsidiary of Kardan, purchased Debentures Series A for a total consideration of EUR 17.8 million (NIS 88.8 million). In January 2010, TGI sold these debentures for EUR 30.2 million (NIS 160.7 million).

In the period June, 2011, until today, GTC RE purchased 81,487,274 Debentures Series A and 48,311,499 Debentures Series B for a total amount of approximately EUR 29.8 million; through these purchases, as of today GTC RE owns 6.8% of Kardan Debentures Series A and 3.6% of Kardan Debentures Series B. Tahal Consulting Engineers Ltd, purchased 18,846,589 Debentures Series A totalling approximately EUR 4 million in December 2011, 1.6% of Kardan Debentures Series A.

The Plan will be interrupted during the closed periods, the first of which will start as of January 26, 2012, until March 27, 2012, when the Company releases its 2011 annual results. In the event that Kardan decides to prematurely end / change the Plan, this will be publicly disclosed by means of a press release.