Highlights segments Q3 and nine months – 2012:
Kardan N.V.
Q3 – 2012:
· Successful repurchases of Debentures: EUR 33 million financing income;
· EUR 20 million profit attributable to equity holders;

9M – 2012:
· EUR 5 million loss attributable to equity holders (9M – 2011: EUR 67 million loss);

Real Estate Asia

Q3 – 2012:
· All permits for construction of mixed-use project Europark Dalian received, bank loan obtained and successful sale of SOHO apartments started after reporting period;
· Substantial deliveries of apartments (704) compared to Q3 – 2011 (186);
· Increase in sale of apartments (436 versus 186 in Q2 – 2012);

9M – 2012:
· EUR 4 million profit attributable to Kardan (9M – 2011: EUR 20 million profit);

Real Estate Europe
Q3 – 2012:

· Sale agreement signed by GTC S.A. for Platinium Business Park(I-V) in Warsaw;
· GTC S.A. continues with cost optimization;
· Devaluation of EUR 33 million at GTC S.A. mainly for 3 retail centers in Romania
(for which preliminary sale agreement has been signed after balance sheet date);

9M – 2012:
· EUR 14 million loss attributable to Kardan mainly due to impairments (9M – 2011:
EUR 52 million loss);

Water Infrastructure Assets
Q3 – 2012:
· Continued construction to increase capacity of water facilities in China;
9M – 2012:
· Break-even result attributable to Kardan, mainly due to one-off expenses (9M – 2011: EUR 4 million profit);

Water Infrastructure Projects
Q3 – 2012:
· Substantial increase in revenue recognized due to projects in Africa;
9M – 2012:
· EUR 6 million loss attributable to Kardan (9M – 2011: EUR 8 million loss);
· Backlog position of EUR 333 million;

Banking and Retail Lending
Q3 – 2012:
· Branch license for TBI Bank in Romania obtained;
· Strong growth in deposit taking in Bulgaria;
· SME loan origination still difficult;

9M – 2012:
· EUR 17 million loss attributable to Kardan (9M – 2011: EUR 7 million loss).

Shouky Oren, CEO of Kardan N.V. stated: “The prime focus in the execution of our strategy remains to continue to create value in selected markets and segments, while emphasizing cash flow generation in our operations and materialization of cash through sale of assets. Starting in mid July and finishing beginning of August 2012, we have repurchased debentures for an amount of EUR 51 million and thereby reduced our total outstanding debt by EUR 84 million. The one-off financial income which was recognized in the third quarter of 2012 had a large impact on the Q3 2012 results. At the same time our subsidiaries are all taking measures to optimize their operational costs, adjusting to the economic environment we are in. In this respect, we will continue to witness an improvement of the operational results including cost saving at the level of the holding. Our strategy remains to continue to invest in emerging markets in primarily real estate and water infrastructure. We see the opportunities in the long term and realize that the global macroeconomic circumstances have become different and are more challenging”.