31/10/2005 GTC Expands its Real Estate Activities into China

Amsterdam, 31 October 2005 - Kardan N.V. (Kardan) announces that its subsidiary GTC Real Estate N.V. (GTC RE) has decided to become active in the Chinese real estate market. GTC RE has signed an agreement with a Hong Kong firm to develop a large residential project in North-East China.

GTC RE has identified China as a growth market for its real estate development activities and has made the strategic decision to become active in this market. GTC RE, has signed an agreement yesterday with a Hong Kong firm to develop a large residential property in the Huishan Development Zone, near Shenyang in North-East China. The project is expected to be developed over a period of 3 years. The development will consist of approximately 2,000 apartments and 4,500 sqm of parking area. The planned development will be executed on a land plot of circa 130,000 sqm. GTC RE and the Hong Kong firm will each have a 50% stake in the project. The total investment in the project is estimated at USD 47 million. GTC RE will initially invest USD 3.75 million in the project.

The Chinese real estate market is an attractive emerging market for GTC RE given the strong economy, the increasing purchasing power, the urbanization trend (masses of people moving into cities), and government reforms of the housing policy (availability of subsidized mortgages). The real estate market in the region surrounding Shenyang is particularly attractive as Shenyang is the economic, cultural, transportation and trade centre in North-East China. The GTC RE group has been active in real estate development in emerging markets since 1994 and has significant experience in this field.

GTC RE´s partner has been active in the Chinese real estate market for the last 10 years and gained extensive experience in residential developments. It has several branch companies of development and sales with a workforce force of 1,000 involved in projects located in ten large and middle-sized cities in China.