Notice of a meeting of the Supervisory Board of KD Group d.d.

In accordance with the provisions of the Rules of the Ljubljana Stock Exchange d.d. and the ZTVP-1 (Official Gazette of the Republic of Slovenia, No. 56/99), KD d.d., Ljubljana, hereby issues the following announcement:

The Supervisory Board of KD Group approved, at its 14th regular meeting on 16 July 2003, approved the company’s annual report for the financial year 2002 and adopted the Supervisory Board’s report on the review of the annual report, which states, amongst other things, that the Supervisory Board
- regularly monitored the company’s operations in 2002 at Supervisory Board meetings, at which it discussed day-to-day operations, the company’s investment activities and the work of the Management Board,
- took note of the auditor’s report by PricewaterhouseCoopers d.o.o. and its unqualified opinion, and had no comments thereon,
- that it approved the proposal for the appropriation of retained earnings;
- that, following a final review of the Annual Report of KD Group d.d. and the KD Group, as well as the Management Board’s proposal for the appropriation of retained earnings and the audit report, the Supervisory Board concluded that it had no comments and that it approved the annual report in its entirety.

The Supervisory Board took note of the letter of resignation from Supervisory Board member Štefan Cigut, who stated that, due to entering into an employment relationship with Zavarovalnica Triglav and a conflict of interest, he was resigning as a member of the Supervisory Board of KD Group d.d. The Supervisory Board will submit a proposal to the General Meeting for the appointment of a new member of the Supervisory Board.

The Supervisory Board discussed and approved the proposed agenda for the company’s General Meeting, within the framework of which it discussed and approved the proposed resolutions for which the Supervisory Board is the proposer or co-proposer.

The General Meeting of KD Group d.d. will be held on 20 August 2003; the agenda with the proposed resolutions will be published in the newspaper *Dnevnik* and on the SEOnet website on Friday 18 July 2003.


KD Group d.d.
Management Board