Delay in the publication of the KD Holding Group’s consolidated annual report for the 2005 financial year

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 Group, d.d., Ljubljana, hereby issues the following announcement:

KD Holding, d.d., Ljubljana, (KD Holding), as a company whose shares are listed on the open market of the Ljubljana Stock Exchange, d.d., Ljubljana, is obliged, in accordance with the Securities Market Act, to submit and publish its audited annual report within 30 days of receiving the auditor’s report, and no later than six months after the end of the financial year.

KD Holding is the parent company of the group and is therefore also obliged, in accordance with the Companies Act, to prepare the consolidated annual report of the KD Holding Group, which must be prepared for the 2005 financial year for the first time in accordance with International Financial Reporting Standards. The company will publish the audited consolidated annual report of the KD Holding Group and the summary of the audited consolidated annual report of the KD Holding Group for the 2005 financial year separately from the audited unconsolidated annual reportand its summary. The KD Holding Group’s consolidated annual report for the financial year 2005 includes 34 companies from 12 countries, many of which are not required to prepare their own parent company financial statements in accordance with International Financial Reporting Standards. During the process of preparing the separate financial statements of subsidiaries for the purposes of compiling the KD Holding Group’s consolidated annual report in accordance with International Financial Reporting Standards, which is being implemented for the first time for the 2005 financial year, technical difficulties arose which made it impossible to prepare the consolidated annual report and obtain the auditor’s report in a timely manner. The audited annual report of the KD Holding Group will be published as soon as the auditor’s report is received, expected in the second half of July.

From 30 June 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 Holding d.d.
Management Board