Amsterdam, November 18, 2013 – Kardan N.V. (“Kardan”/ “the Company”), active in Real Estate, Water Infrastructure and Financial Services in emerging markets announces that, following the announcement on June 11, 2013, the intended agreement by its wholly owned subsidiary TBIF Financial Services BV (“TBIF”) to sell its 66% share in the leasing company Avis Ukraine to its co-owner Kardan Vehicle Ltd. (“Kardan Vehicle”) (“the Transaction”) has not been endorsed by Avis Europe Holdings (“Avis Europe”).

Kardan Vehicle has received notice of Avis Europe that it does not endorse the Transaction. In light of Avis Europe’s notice, TBIF is considering to take actions which may be necessary to realize the Transaction as was outlined originally or alternatively to sell to a third party, as it deems appropriate.

The Transaction as announced in June last encompassed a consideration of USD 8.6 million which was subject to price adjustments before closing date, in addition to which Kardan Vehicle would guarantee the repayment of a loan of approximately USD 5 million granted by TBIF to Avis Ukraine. Accordingly, in the Q2 2013 financial statements of TBIF, the investment in Avis Ukraine was impaired pending its sale.

Avis Ukraine owns a fleet of approximately 2,600 vehicles and has an estimated market share of 22% of the leasing market and 39% of the rental market of vehicles in Ukraine. In 2012, Avis Ukraine reported a net profit of USD 2 million.

The decision to sell the leasing activities in Ukraine is in line with TBIF’s strategy to focus on its financial service activities in Bulgaria and Romania and with Kardan’s objective to generate free cash in order to deleverage.