Subscription to new shares as part of the capital increase at Poslovni sistem Mercator, d. d.

Pursuant to 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:

KD Group, finančna družba, d. d., Celovška cesta 206, Ljubljana (hereinafter: KD Group), hereby informs the public that today, 31 January 2006, it has made a payment of 4,115,318,355.00 SIT to acquire 106,950 newly issued shares in Poslovni sistem Mercator, d. d., Ljubljana (hereinafter: Mercator). KD Group paid for the shares in accordance with the resolutions adopted by Mercator regarding the procedure for increasing the share capital on the basis of authorised capital and the issue of new shares.

From 31 January 2006 until further notice, the company will also publish this notice on its website www.kd-group.si under ‘Notices’ in the ‘Public Announcements’ section.


KD Group d. d.
Management Board