  We investigate the two-body reaction $\pi^- p \to K^{0} \Lambda$ within the
effective Lagrangian approach and the isobar model. In addition to the
"background" contributions from $t$-channel $K^*$ exchange, $u$-channel
$\Sigma(1192)$ and $\Sigma^*(1385)$ exchanges, and $s$-channel nucleon pole
terms, the contributions from the nucleon resonances $N^*(1535)$, $N^*(1650)$,
and $N^*(1720)$ are investigated. It is shown that the inclusion of these
nucleon resonances contributions leads to a good description of the
experimental total and differential cross sections data at low energy region.
The $s$-channel $N^*(1535)$, $N^*(1650)$, and $N^*(1720)$ resonances and the
$t$-channel $K^*$ exchange give the dominant contributions below $W = 1.76$
GeV, while the $u$-channel $\Sigma(1192)$ and $\Sigma^*(1385)$ exchanges give
the minor contributions.
