Takeover bid and prospectus for the purchase of shares in Deželna banka Slovenije d.d.

KD Holding, finančna družba, d. d., Ljubljana, Celovška 206, in accordance with Article 9 of the Takeovers Act (Official Gazette of the Republic of Slovenia, No. 79/06; ZPre-1), hereby publishes the following

Notice of a takeover bid for the purchase of shares in Deželna banka Slovenije d.d.

KD Holding, financial company, d. d., Ljubljana, Celovška 206, Ljubljana, hereby announces that on 13 October 2006 it obtained authorisation No. 171/134/AG-06-(353) dated 12 October 2006, for the offeror KD Holding, financial company, d.d., Celovška 206, Ljubljana, for a takeover bid to acquire 2,295,300 ordinary registered shares of the same class, with a nominal value of 1,000.00 SIT (hereinafter: shares), less 730,314 shares already held by the offeror, i.e. a total of 1,564,986 shares in the target company Deželna banka Slovenije, d.d., Ljubljana, Kolodvorska 9 (hereinafter ‘Deželna banka Slovenije’). In accordance with Article 32 of the ZPre-1, the offeror published the takeover bid on 14 October 2006 in the newspapers Dnevnik and Delo, and the takeover prospectus on the website of KD HOLDING d.d. (http://www.kd-group.si) and on the website of Nova Ljubljanska banka d.d., Ljubljana (http://www.nlb.si/) and on the website of the Ljubljana Stock Exchange d.d. (http://seonet.ljse.si) on 16 October 2006.

In accordance with Article 33 of the Takeover Act (ZPre-1), the Offeror, at the same time as its publication, sent the takeover prospectus to the management of the target company, the Competition Protection Office of the Republic of Slovenia, the Ljubljana Stock Exchange d.d., Ljubljana, KDD – Central Clearing and Depository Company d.d., Ljubljana, all stockbroking firms authorised to provide securities-related services within the Republic of Slovenia, and the employee representatives of the target company.

The takeover bid is valid from 16 October 2006 inclusive until 13 November 2006 inclusive, until 10.00 am, unless the validity of the offer is extended in accordance with the ZPre-1.

This notice will also be published from 16 October 2006 until further notice on the website www.kd-group.si under ‘Notices’ in the ‘Public Announcements’ section.

Ljubljana, 14 October 2006



KD Holding d. d.
Matjaž Gantar, Director