Withdrawal of the proposal to merge KD Group d.d. with KD Holding 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:

At today’s meeting of the general meetings of shareholders of both companies, the Director of KD Group d.d. and KD Holding d.d. withdrew the proposal for the merger of KD Group d.d. into KD Holding d.d.

The full press release regarding today’s general meetings of both companies is attached; the notice will also be published on the website www.kd-group.si from 22 June 2005 until further notice.

Ljubljana, 22 June 2005


KD Group d.d.
Management Board