Microsoft Word - 20150306 - Kardan completes 75% of sale of water infrastructure company in China.docx KARDAN COMPLETES 75% OF SALE OF WATER INFRASTRUCTURE COMPANY IN CHINA Amsterdam, March 6, 2015 - Kardan N.V. ('Kardan'/ the 'Company'), active in Real Estate, Water Infrastructure and Financial Services in emerging markets, announces that - further to the press release of January 15 last - its indirectly held subsidiary Tahal Group Assets BV ('Tahal Assets') has completed the first phase (75%) of the sale of its shares in the Chinese water infrastructure company Kardan Water International Group Ltd. ('KWIG') to China Gezhouba Group Investment Holding Co. Ltd. ('CGGC Investment') (the 'Transaction').

CGGC Investment paid Tahal Assets an amount of USD 68 million (approximately

EUR 61 million), which reflects 90% of the consideration for 75% of KWIG's shares; the remaining

10% amounting to USD 7.5 million (approximately EUR 6.8 million) will be paid in 10 days.

In addition, the buyer repaid all outstanding loans provided to KWIG by Kardan Group companies, totaling approximately USD 48.5 million (approximately EUR 43 million).

The received funds will be used by Tahal for its ongoing business operations as well as for repayment of debt, both on Tahal and Kardan level.

The Company estimates that the Transaction will generate a net profit of approximately

EUR 5 million, although it is still investigating all aspects of the Transaction.

DISCLAIMER

This press release contains forward-looking statements and information, for example concerning the financial condition, results of operations, businesses and potential exposure to market risks of Kardan N.V. and its group companies (jointly "Kardan Group"). All statements other than statements of historical fact are, or may be deemed to be, forward-looking
statements (including "forward looking statements" as defined in the Israeli Securities Law). Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ
materially from those expressed or implied in these statements. These forward-looking statements are identified by the use of terms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''intend'', ''may'', ''plan'',
''objectives'', ''outlook'', ''probably'', ''project'', ''will'', ''seek'', ''target'', ''risks'', ''goals'', ''should'' and similar terms and
phrases. A variety of factors, many of which are beyond Kardan Group's control, affect our operations, performance, business strategy and results and could cause the actual results, performance or achievements of Kardan Group to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For Kardan Group, particular uncertainties arise, amongst others but not limited to and not in any order of importance, (i) from dependence on external financing with the risk that insufficient access to capital threatens its capacity to grow, execute its business model, and generate future financial returns (ii) from concentration of its business in Central Eastern Europe and China as a result of which Kardan Group is strongly exposed to these particular markets (iii) from risks related to the financial markets as a result of Kardan N.V.'s listings on NYSE Euronext Amsterdam and the Tel Aviv Stock Exchange and (iv) from it being a decentralized organization with a large number of separate entities spread over different geographic areas in emerging markets, so that Kardan Group is exposed to the
risk of fraudulent activities or illegal acts perpetrated by managers, employees, customers, suppliers or third parties which expose the organization to fines, sanctions and loss of customers, profits and reputation etc. and may adversely impact Kardan Group's ability to achieve its objectives and (v) from any of the risk factors specified in Kardan N.V.'s Annual Report and in the related "Periodic Report" (published by Kardan N.V. in Israel) published in April, and which is also available at the Kardan website. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Kardan N.V. does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which
differ from those anticipated.

About Kardan

Kardan identifies and develops assets in promising emerging markets, mainly in Asia

(predominantly China), Africa and selected CEE and CIS countries.

Its activities are mainly focused on three sectors that benefit from the rising middle class: Real Estate, Water Infrastructure and Banking & Retail Lending. Company headquarters are in the Netherlands. Kardan aims at holding controlling interests in its investments and is actively involved in the definition and implementation of their strategy through its local business

platforms. Total assets as of September 30, 2014 amounted to EUR 1,013 mn; revenues totalled

EUR 161 mn in the first nine months of 2014. Kardan is listed on NYSE Euronext Amsterdam and the Tel Aviv Stock Exchange.

For further information please contact:

Caroline Vogelzang

Director Investor Relations

Phone: +31 20 30 50 010

Mobile: +31 6 10 949 161

Vogelzang@kardan.nlwww.kardan.nl

"This press release contains regulated information (gereglementeerde informatie) as defined in the Dutch Act on Financial Supervision (Wet op het financieel toezicht)"

distributed by