30/7/2007 GTC acquires rights to develop its first shopping mall in Chengdu

Amsterdam, 30 July 2007 - Kardan N.V. (Kardan) announces that its real estate subsidiary GTC Real Estate N.V (GTC RE) will develop its first shopping mall in Chengdu, China. GTC RE won, in a 75%/25% partnership with its local partner Lucky Hope, the ownership of the 20,000 sq.m. new development site through an auction.

The project is located in Chengdu, a major city in the West of China, the capital of Sichuan Province. The location of the site is in the southern part of the city in the newly-developed Hi-tech district, a mid- to upper class area, off a main road connecting downtown Chengdu with this new district. The site is surrounded by 4 mega stores; IKEA, Auchan, Decathlon and Fusen, a large Chinese furniture chain store. These 4 stores are either already operational or will be by the end of this year.

On the site, GTC RE plans to develop a 40,000 sq.m. shopping mall over the next 3 years.

The consideration for the land is approximately EUR 25.8 million. The total investment in the project is estimated at approximately EUR 57 million.

This will be GTC RE’s first developed shopping mall in China and its first development in Chengdu, the third Chinese city in which GTC RE established operations.

GTC RE, the real estate division of the Kardan Group, holds a 46.1% stake in GTC SA, one of the largest real estate developers in CEE. GTC RE is active in Europe through GTC SA and GTC investments B.V., and in China through GTC Real Estate China Ltd. GTC RE’S shares are listed on the Tel Aviv Stock Exchange and are included in several of its major indices. Kardan currently holds (directly and indirectly) a 61.6% stake in GTC RE.