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:

At its 16th ordinary meeting on 29 June 2004, the Supervisory Board of KD Group approved the annual reports of KD Group d.d. and the KD Group for the financial year 2003. The Supervisory Board adopted a written ‘Report of the Supervisory Board on the Review of the Annual Reports of KD Group d.d. and the KD Group for 2003’, which states, amongst other things, that the Supervisory Board

- regularly monitored the company’s operations in 2003 at meetings of the Supervisory Board, at which it discussed day-to-day operations, the company’s investment activities and the work of the Management Board,
- reviewed and took note of the auditor’s reports on the annual reports of KD Group d.d. and the KD Group, as well as the auditor’s unqualified opinion, and had no comments to make on them,
- considered and amended the Management Board’s proposal for the allocation of retained earnings,
- having carried out a final review of both annual reports, the Management Board’s proposal for the allocation of retained earnings and the audit reports, concluded that it had no comments to make and that it fully approved the annual reports of KD Group d.d. and the KD Group for 2003.

The Supervisory Board also proposed to the General Meeting that it grant discharge to the management and the Supervisory Board for the 2003 financial year.

Later in the meeting, the Supervisory Board considered the proposal for amendments and additions to the company’s Articles of Association and the proposed agenda for the 7th General Meeting, during which it considered and adopted draft resolutions for which the Supervisory Board acts as proposer or co-proposer, and authorised the Management Board to convene the General Meeting.

The notice convening the General Meeting, together with the proposed resolutions, will be published in the newspaper Dnevnik and on the


KD Group d.d.
website. The Management Board