Receipt of a supplementary decision from the Ljubljana Stock Exchange, 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 Group, d.d., Ljubljana, hereby issues the following announcement:

KD Holding, financial company, d.d., Ljubljana (KD Holding) hereby announces that on 16 June 2005 it received a supplementary decision from the Ljubljana Stock Exchange, d.d., Ljubljana (the Stock Exchange) regarding the extension of the deadline for obtaining authorisation for organised trading in ordinary registered shares with the ticker symbol KDHR, issued on 5 November 2004 as part of the merger with KD Naložbe d. d., Ljubljana (KD Naložbe). The Stock Exchange has extended the deadline for obtaining the authorisation until 30 November 2005. In accordance with the Stock Exchange’s supplementary decision, trading in shares with the ticker symbol KDHR will continue uninterrupted.

On 17 March 2005, KD Holding received a decision from the Stock Exchange regarding the conditional temporary suspension of trading in ordinary registered shares with the symbol KDHR on the open market. In accordance with the decision, the Stock Exchange would have suspended trading in shares with the ticker symbol KDHR on the open market with effect from 20 June 2005, should KD Holding, by 17 June 2005, in respect of the additional issue of shares with the ticker symbol KDHR, fails to secure authorisation from the Securities Market Agency (the Agency) for organised trading and, in accordance with the Securities Market Act (Official Gazette of the Republic of Slovenia No. 56/99, as amended; ZTVP-1) it had failed to ensure the public disclosure of an extract from the prospectus. The Stock Exchange’s decision relates to the additional shares with the symbol KDHR, which were entered on 5 November 2004 in the central register of KDD – Central Clearing and Depository Company d.d., Ljubljana (KDD), following the entry of the merger of KD Naložbe in the court register.

On 30 May 2005, KD Holding submitted an application to the Agency for a licence for organised trading in the shares in question, whilst requesting the Agency to allow it to supplement the application within a timeframe which would allow the procedure for obtaining the authorisation to be carried out simultaneously with the procedure for obtaining authorisation for organised trading in the shares of KD Holding, which will be issued as part of the merger of KD Group, a financial company, d. d., Ljubljana (KD Group), into KD Holding, on which the shareholders’ meetings convened for 22 June 2005 will decide. In KD Holding’s view, the process of obtaining authorisation can thus be carried out in the most efficient and cost-effective manner, whilst ensuring that investors are in no way deprived of the relevant information. KD Holding and KD Group keep the public adequately informed at all times regarding all price-sensitive information, both in relation to their financial position (summaries of the 2004 annual reports of KD Holding and KD Group were published on SEOnet on 10 May 2005) and in relation to the proposed merger (several announcements from 26 April 2005 onwards; documents relating to the merger are available for inspection); a single comprehensive prospectus following the completion of both mergers will provide a clearer document for investors. The Agency granted KD Holding’s request. The Stock Exchange issued a supplementary decision extending the deadline for obtaining authorisation for organised trading in ordinary registered shares with the ticker symbol KDHR, thereby enabling KD Holding to complete the procedure for obtaining authorisation for organised trading with the Agency.

KD Holding will obtain the authorisation for organised trading in the shares to which the Stock Exchange’s decision relates, together with the authorisation for organised trading in shares with the ticker symbol KDHR (shares of the same class), which will be issued as part of the merger of KD Group into KD Holding.

The company will also publish this notice on its website at www.kd-group.si from 16 June 2005 until further notice.

Ljubljana, 16 June 2005



KD Holding d.d.
Management Board