Exercise of the put option by Sava Re 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., Celovška cesta 206, Ljubljana, hereby informs the public that Pozavarovalnica Sava d.d., Ljubljana, has exercised the put option under the Agreement concluded on 10 June 2005 between KD Holding d.d., Pozavarovalnica Sava d. d. and R.E. Invest d. o. o., together with the relevant annexes dated 15 June 2005, 14 September 2005 and 27 February 2006.
In accordance with the agreement, Pozavarovalnica Sava d. d. sold a block of 343,964 shares in Adriatic Slovenica, zavarovalna družba, d. d., Koper, with the ticker symbol ADZR, at a price of 2,911.00 SIT per share, totalling 1,001,279,204.00 SIT.
Following the acquisition of the aforementioned shares, KD Holding d. d. now holds a total of 3,386,059 shares in Adriatic Slovenica d. d., representing a 92.349 per cent stake in the insurance company.

From 5 April 2006 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