Notice of the 7th Ordinary Meeting of the Supervisory Board of KD Group 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 d.d., Ljubljana, hereby issues the following announcement:

The Supervisory Board of KD Group d.d., Celovška cesta 206, Ljubljana, met on 21 July 2006 for its 7th ordinary meeting.

At the meeting, it considered and approved the annual reports of KD Group d.d. and the KD Group for the financial year 2005, and adopted the Supervisory Board’s written report on the review of the annual reports, which states, amongst other things, that the Supervisory Board:

- was informed of all significant business events in 2005 that affected the company’s operations and was thus able, at its meetings, to regularly monitor and discuss the company’s day-to-day operations, investment activities and the work of the management board;
- reviewed and took note of the auditor’s reports on the annual reports of KD Group d.d. and the KD Group, and of the auditor’s unqualified opinions;
- considered the Management Board’s proposal for the appropriation of retained earnings;
- having carried out a final review of both annual reports, the Management Board’s proposal for the appropriation of retained earnings and the audit reports, the Supervisory Board found that it had no objections and agreed with all the findings in the reports, and therefore fully approves the annual reports of KD Group d.d. and the KD Group for the year 2005.

Later in the meeting, the Supervisory Board considered the proposed agenda for the 10th General Meeting of Shareholders. It agreed with the proposed justifications for the draft resolutions of the General Meeting of Shareholders and the proposed amendments and additions to the Articles of Association. 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 General Meeting of KD Group d.d. is expected to be held on 30 August 2006. The notice convening the General Meeting, together with the draft resolutions, will be published in the newspaper Dnevnik and on the SEOnet website. The text of the proposed amendments to the Articles of Association, together with an explanatory statement, will be available at the company’s registered office from the date of the notice of the General Meeting and will be published in electronic form on the company’s website www.kd-group.si together with the notice of the General Meeting.

The company will also publish this notice on the website www.kd-group.si from 24 July 2006 until further notice, in the ‘Notices’ section under the heading ‘Public Announcements’.


KD Group d.d.
Management Board