Receipt of a supplementary decision from Ljubljana Stock Exchange 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:

KD Holding, finančna družba, d.d., Ljubljana (KD Holding) hereby announces that on 1 December 2005 it received a supplementary decision from the Ljubljana Stock Exchange d.d., Ljubljana (the Stock Exchange) extending the deadline for obtaining authorisation for organised trading in ordinary registered shares with the ticker symbol KDHR, issued on 5 November 2004 as part of the merger with KD Naložbe d. d., Ljubljana (KD Naložbe). The Stock Exchange has extended the deadline for obtaining the authorisation until 28 February 2006. In accordance with the Stock Exchange’s supplementary decision, trading in shares with the ticker symbol KDHR will continue uninterrupted.

On 13 October 2005, the general meeting of shareholders of KD Holding adopted a resolution to increase the share capital through contributions in kind, on the basis of which the increase in share capital was entered in the court register on 16 November 2005. As part of this process, 1,302,106 ordinary shares in KD Holding, designated KDHR, will be issued; these are shares of the same class as those to which the Stock Exchange’s decision relates. KD Holding must also obtain authorisation for organised trading in these shares, as they will be issued on the basis of a private placement in accordance with point 5 of the first paragraph of Article 18 of the Securities Market Act (Official Gazette of the Republic of Slovenia, No. 56/99, as amended; ZTVP-1). On 25 November 2005, KD Holding submitted a joint application to the Securities Market Agency for authorisation for organised trading in both issues of shares, for which it prepared a single prospectus in accordance with Commission Regulation (EC) No 809/2004. The Agency will be able to decide on the matter after the expiry of the time limit set out in the third paragraph of Article 58 of the Securities Market Act (ZTVP-1), which expires on 18 December 2005, therefore KD Holding has requested the Stock Exchange to extend the deadline until the authorisation procedure is concluded.

From 1 December 2005 until further notice, the company will also publish this notice on the website www.kd-group.si under ‘Notices’ in the ‘Public Announcements’ section.



KD Holding d.d.
Management Board