Receipt of the Ljubljana Stock Exchange’s decision on the conditional temporary suspension of trading in KDHR shares

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, finančna družba, d.d., Ljubljana (hereinafter ‘KD Holding’) announces that on 17 March 2005 it received a decision from the Ljubljana Stock Exchange d.d., Ljubljana, regarding the conditional temporary suspension of trading in ordinary registered shares with the symbol KDHR on the open market.
The Ljubljana Stock Exchange d.d. will suspend trading in shares with the ticker symbol KDHR on the open market with effect from 20 June 2005, should the issuer – KD Holding – fail, by 17 June2005, fails to secure authorisation from the Securities Market Agency (hereinafter: ATVP) for organised trading in connection with an additional issue of shares with the ticker symbol KDHR, and in accordance with the Securities Market Act (ZTVP-1, Official Gazette of the Republic of Slovenia No. 56/99, as amended, hereinafter: ZTVP-1) fails to ensure the public disclosure of an extract from the prospectus. These are additional shares with the symbol KDHR, which were entered on 5 November 2004 in the central register of KDD – Central Clearing and Depository Company d.d., Ljubljana, following the exchange of shares in KD Naložbe d.d., Ljubljana (share code PDKR) for ordinary registered shares in KD Holding (share code KDHR), due to a merger.
The Ljubljana Stock Exchange d.d. adopted the aforementioned decision after, following an enquiry from the ATVP, it had re-examined the legal basis for the admission of an additional number of shares with the symbol KDHR to trading on the open market. Pursuant to the amendment to the ZTVP-1A (Official Gazette of the Republic of Slovenia No. 86/04), which came into force on 20 August 2004, the issuer is, in respect of shares issued pursuant to point 1 of the third paragraph of Article 15 of the ZTVP-1 (the issue of securities for the purpose of exchanging existing securities in connection with a merger or division of companies), is required to obtain authorisation from the ATVP for organised trading, provided that it wishes to list the said securities on an organised market.

KD Holding d.d. will comply with the decision received and commence the necessary procedures to fulfil the required conditions.

This notice will also be published on the company’s website, www.kd-group.si,



from today, 17 March 2005, and for at least the next six months. KD Holding d.d.
Management Board