OREANDA-NEWS  On 02 March was announced, that Kardan N.V. ("Kardan") would like to clarify several points made in a Bloomberg article based on an interview with the Chairman of the Management Board.

Neither Kardan nor its subsidiaries have stopped activities in any sector or region, and remain unremittingly confident in their strategy. However, in view of the global crisis, it has taken several steps that show an ability to quickly adapt to market conditions as also announced at the publication of the third quarter results.

a) In relation to its real estate subsidiary active in Central and Eastern Europe (CEE), Globe Trade Center SA (GTC SA), listed on the Warsaw stock exchange, the following earlier announced measures have been taken:

- For projects under construction, GTC verifies market conditions for each project, and if appropriate, adjusts pace and progress of development;

- For projects not yet under construction, GTC will only start construction if there are clear indications that the project can be marketed successfully;

- In addition, GTC SA is examining opportunities to convert some residential projects into office projects.

The activities of GTC SA are diversified: the company is active in 10 countries and develops residential, office and retail projects. The Equity to Total Assets ratio of GTC SA as at 30 September 2008 is at a comfortable 47%.

b) In relation to its banking and retail credit arm of Kardan, TBIF financial services B.V (TBIF), the following measures have been taken:

- TBIF’s banks in Russia and Ukraine are adopting stricter policies for granting credit in order to maintain a high liquidity level, like all financial institutions;

- Company policies are verified continuously based on current liquidity position and macro economic factors;

- Various efficiencies have been implemented without damaging the platforms of activities, such as the reduction in workforce and the number of bank branches and point of sales.