Agreement signed on the merger of KD Group d.d. into KD Holding d.d.

In accordance with 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 publishes the following announcement:

The management boards of KD Holding, a financial company, d.d., Celovška cesta 206, Ljubljana, and KD Group, a financial company, d.d., Celovška cesta 206, Ljubljana, signed an agreement yesterday, 5 May 2005, regarding the merger of KD Group d.d. into KD Holding d.d.
The audit of the merger will be carried out by the audit firm PricewaterhouseCoopers d.o.o., whilst the supervisory boards of both companies will, in accordance with Article 514.a of the Companies Act, review the proposed merger at their meetings and draw up a written report on the matter.

We will inform the public of the decisions of the supervisory board, the convening of the general meeting to decide on the merger, and other legal acts relating to the merger, in accordance with the regulations.

From 6 May 2005 until further notice, the company will also publish this notice on its website www.kd-group.si under ‘Notices’ in the ‘Public Announcements’ section.



KD Holding d.d.
Management Board