Notice of an intended takeover

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. 51/06, UPB 2), KD Group, d.d., Ljubljana hereby publishes the following announcement:

KD Holding, a financial company, d.d., Ljubljana, Celovška 206, in accordance with Article 24 of the Takeovers Act (Official Gazette of the Republic of Slovenia, No. 79/06; ZPre-1), hereby publishes the following

NOTICE OF INTENTION

TO MAKE A TAKEOVER BID KD Holding, d.d., Ljubljana, Celovška 206, intends to make a takeover bid for the acquisition of all shares in Deželna banka Slovenije, d. d., Ljubljana, Kolodvorska 9 (hereinafter ‘Deželna banka Slovenije’) in accordance with ZPre-1.

In accordance with Article 24 of the ZPre-1, KD Holding d.d. has notified the Securities Market Agency, the Competition Protection Office of the Republic of Slovenia and the management of Deželna banka Slovenije of its intention.

In the takeover bid, KD Holding d.d. intends to offer all shareholders of the Regional Bank of Slovenia 4,500.00 SIT per share with the ticker symbol SZBR.

This notice will also be published from 25 September 2006 until further notice on the website www.kd-group.si under ‘Notices’ in the ‘Public Announcements’ section.

Ljubljana, 23 September 2006



KD Holding d.d.
Matjaž Gantar, Director