Notice of a Supervisory Board meeting

In accordance with the provisions of the Rules of the Ljubljana Stock Exchange, d.d., Ljubljana, and the applicable legislation, KD Group, d.d., Ljubljana, hereby issues the following announcement:

The Supervisory Board of KD Holding, finančna družba, d.d., Celovška cesta 206, Ljubljana, held its 18th meeting on 27 June 2008.
At the meeting, the Supervisory Board considered the audited Annual Report of KD Holding d.d. and the Annual Report of the KD Holding Group for the financial year 2007. It took note of the auditor’s unqualified opinion on the annual reports and approved the amended proposal for the appropriation of retained earnings, whereby the company’s retained earnings, which as at 3112.2007, is allocated such that a portion of the retained earnings amounting to EUR 889,819.42 is used for distribution to shareholders, holders of shares with the code KDHP, namely a portion of the retained earnings amounting to EUR 444,909.71 is to be used to pay a fixed dividend for 2007; the gross dividend per preference share in respect of this amount is EUR 1.67; a portion of the retained earnings amounting to EUR 444,909.71 shall, in accordance with the second indent of the second paragraph of Article 40 of the Articles of Association of KD Holding d. d., be used to pay an additional dividend for the year 2007; the gross dividend per preference share in respect of this amount is EUR 1.67; the total gross dividend per KDHP share is therefore EUR 3.34. Furthermore, a portion of the retained earnings amounting to EUR 19,264,608.00 shall be used to pay a dividend to holders of shares with the symbol KDHR; the gross dividend per KDHR share amounts to EUR 7.20. A portion of the retained earnings amounting to EUR 43,000.00 shall be used to pay a bonus to the management board, whilst the remaining portion of the retained earnings, amounting to EUR 780,740.71, shall not be utilised, and the decision on its allocation shall be deferred to the following year.
The Supervisory Board adopted the Supervisory Board’s written report on the review of the annual reports, thereby approving the Annual Report of KD Holding d.d. and the Annual Report of the KD Holding Group for 2007.
The Supervisory Board also considered the proposed agenda for the 11th General Meeting of Shareholders of the company. It agreed to the proposal to convene the General Meeting, the agenda and the justifications for the proposed resolutions of the General Meeting of Shareholders. In this context, it adopted the proposed resolutions for which it acts as proposer or co-proposer, and authorised the Management Board to convene the meeting. The company’s Annual General Meeting is expected to take place in the last week of August. The notice convening the meeting will be published in the newspaper Dnevnik and on the SEOnet website and the company’s website www.kd-group.com by the end of July 2008 at the latest.
Later in the meeting, the Supervisory Board was briefed on the current activities and operations of the companies within the KD Holding Group for the period January–March 2008.
This notice will also be published on the company’s website www.kd-group.com under ‘Public Announcements’ from 30 June 2008 at the latest.


KD Holding d.d.
Management Board