Notice of a meeting of the Supervisory Board of 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 issues the following announcement:

The Supervisory Board of KD Holding d.d., Celovška cesta 206, Ljubljana, held its 8th ordinary meeting on 18 July 2006.

At the meeting, the Supervisory Board reviewed the Management Board’s report on relations with the parent company and on dealings with associated companies, considered and approved the annual reports of KD Holding d.d. and the KD Holding Group for the financial year 2005, and adopted the Supervisory Board’s written report on the review of the annual reports. The Supervisory Board’s report indicates, 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 Holding d.d. and the KD Holding Group, and of the auditor’s unqualified opinions;
- considered and amended 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, concluded that it had no comments to make and agreed with all the findings in the reports, and therefore fully approves the annual reports of KD Holding d.d. and the KD Holding Group for 2005.

Later in the meeting, the Supervisory Board considered the proposed agenda for the 9th General Meeting of Shareholders. It agreed with the proposed justifications for the draft resolutions of the General Meeting of Shareholders and with 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 General Meeting.

The General Meeting of KD Holding d.d. is expected to take place on 30 August 2006. The notice convening the General Meeting, together with the proposed 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 the explanatory notes, 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.

From 18 July 2006 until further notice, the company will also publish this notice on the website www.kd-group.si under the ‘Notices’ section in the ‘Public Announcements’ category.



KD Holding d.d.
Management Board