Notice regarding the outcome of the offer to purchase ordinary shares in the issuer KD Holding d.d.

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

Pursuant to Article 40 of the Takeovers Act (Official Gazette of the Republic of Slovenia, No. 47/97), the management of KD Group d.d., as the offeror for the repurchase of ordinary shares of the issuer KD Holding d.d., hereby informs the public that the validity period of the offer to purchase ordinary shares of the issuer KD Holding d.d. expired on 29 August 2002. During the validity period of the offer, 758 shareholders of KD Holding d.d., holding 347,010 ordinary shares in KD Holding d.d., accepted the buy-back offer, representing 37.52 per cent of all the issued ordinary shares of KD Holding d.d. to which the offer related. The minimum number of ordinary shares in KD Holding d.d. for which the offer had to be accepted in order for it to be deemed successful is 185,027 ordinary shares in KD Holding d.d. On the basis of the above, the Offeror concludes that the offer to purchase ordinary shares of the issuer, KD Holding d.d., has been successful.

The general meeting of shareholders of KD Group d.d., which will decide on an increase in share capital through contributions in kind, in accordance with the offer to purchase shares in KD Holding d.d., will be held on 9 September 2002 at 10.00 am on the 5th floor of the Slovenica business building, Zavarovalnica d.d., Celovška 206, Ljubljana.

Ljubljana, 30 August 2002


KD Group d.d.
Management Board