Amsterdam, July 6, 2012 – Kardan N.V. (“Kardan” or “the Company”), active in Real Estate, Water Infrastructure and Financial Services in emerging markets, announces that its holding for the Chinese water infrastructure operations, Kardan Water International Group (HK) Ltd (“Kardan Water”), signed a Memorandum of Understanding (“MoU”) with an International Infrastructure Fund (“the Investor”), to increase its capital by RMB 500 million (approximately EUR 62 million, at the current exchange rate) (“the Transaction”). After closing of this Transaction the Investor will hold approximately 39.5% - 42% of the shares of Kardan Water, pending the achievement of operational targets for the years 2013 - 2015.

The capital increase, which is in line with Kardan’s strategy to fund its activities at the intermediate or subsidiary levels, will enable Kardan Water to further develop its Chinese water infrastructure operations.

The Transaction is subject to, among others, due diligence, conclusion of the final agreements and receipt of the necessary consents and approvals, including both parties’ corporate approvals and there is no certainty that it will be completed.

The accounting implications of the intended transaction are under investigation.

Kardan Water
Kardan Water, a fully owned subsidiary of Tahal Group International (100% owned by
Kardan N.V.), started its operations in 2007, and currently has 10 operating plants (wastewater treatment, water re-use and water supply) as well as one wastewater treatment facility under construction.