Notice regarding the acquisition of shares in Adriatic, zavarovalna družba, d.d.

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

Pursuant to Article 66 of the Securities Market Act (Official Gazette of the Republic of Slovenia, No. 56/99, as amended) and Article 38 of the Stock Exchange Rules (Official Gazette of the Republic of Slovenia, No. 113/02, as amended), KD Holding, finančna družba, d.d., Ljubljana, Celovška cesta 206, hereby announces that, in accordance with the share sale and purchase agreement concluded yesterday between the sellers Banka Koper d.d., Modra Linija Holding d.d. and Interfin Naložbe d.d., and the buyer KD Holding d.d., today, 15 June 2005, it has acquired a total of 947,754 shares in Adriatic, zavarovalna družba, d.d., Ljubljanska cesta 3a, Koper, with the ticker symbol ADZR, representing a 35.37 per cent stake in the insurance company.

The company will also publish this notice on its website at www.kd-group.si from 15 June 2005 until further notice.

Ljubljana, 15 June 2005



KD Holding d.d.
Management Board