Notice regarding the acquisition of a qualifying holding in Deželna banka Slovenije, d.d.

Pursuant to the provisions of the Rules of the Ljubljana Stock Exchange d.d. and the Securities Market Act-1 (Official Gazette of the Republic of Slovenia, No. 56/99), KD d.d., Ljubljana, hereby publishes the following announcement:

Pursuant to Article 66 of the Securities Market Act (Official Gazette of the Republic of Slovenia, No. 56/99, as amended) and Article 38 of the Stock Exchange Rules (Official Gazette of the Republic of Slovenia, No. 113/02, as amended), KD Group, financial company, d.d., Ljubljana, Celovška cesta 206, hereby announces that, in accordance with the authorisation issued by the Bank of Slovenia on 242 February 2005 to acquire a qualifying holding which, directly or indirectly, reaches or exceeds 20 per cent of the share capital or voting rights in Deželna banka Slovenije, Kolodvorska 9, Ljubljana (hereinafter: DBS), on 6 June 2005 acquired a further 25,070 DBS shares with the ticker symbol SZBR, representing 1.10 per cent of all the issuer’s shares.

With the acquisition of the aforementioned shares, KD Group, d.d., together with the 226,570 DBS shares (9.87 per cent) previously acquired indirectly, now holds a total of 251,640 DBS shares, representing a 10.96 per cent stake in the bank. The company intends to reach the qualifying holding in DBS, for which it has been granted authorisation, within six months of the authorisation being issued.

The company will also publish this notice on its website at www.kd-group.si from 6 June 2005 until further notice.

Ljubljana, 6 June 2005


KD Group d.d.
Management Board