Notice regarding the acquisition of own shares

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 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 39 of the Stock Exchange Rules (Official Gazette of the Republic of Slovenia, No. 113/02, as amended), the issuer KD Group, financial company, d.d., Ljubljana, Celovška cesta 206, hereby announces the acquisition of its own shares.

On 31 January 2005, KD Group, finančna družba, d. d., Ljubljana acquired 1,500 of its own shares, designated SKDR, at a price of 110,000.00 SIT per share, which represents 0.8 per cent of all the issuer’s shares; as a result, together with other shares acquired previously, KD Group d.d. now holds a total of 16,115 treasury shares, representing an 8.64 per cent stake in the company’s share capital.
KD Group d.d. acquired the treasury shares in accordance with the authorisation granted by the General Meeting of Shareholders on 24 August 2004. The reason for the purchase is to increase the value of the company’s assets.

Ljubljana, 31 January 2005


KD Group d.d.
Management Board