Ljubljana, 9 September, 2002

KBC NV, Belgium - now a key shareholder in Nova Ljubljanska banka

On 6th September KBC Bank NV, a leading Belgium based banking-insurance Group acquired a 34-per cent stake in Nova Ljubljanska banka, Slovenia's biggest bank. KBC's experience, know-how and capital will support the further strengthening and expansion of NLB's business activities in south-east Europe markets as well branching into new areas of business such as bank-insurance. Concurrently, the European Bank for Reconstruction and Development (EBRD) has acquired a 5-per cent shareholding in NLB, also providing clear support to the expansion strategy of NLB and its subsidiaries and affiliates.

Expansion and further growth remain one of the main strategic goals of NLB, which has already been supported by the new partner KBC during the negotiations. The first stage of NLB privatization is now complete and the second phase is anticipated to begin in a few weeks that will see institutional portfolio investors participate, predominately from Slovenia.

The shareholder structure of NLB after this second phase will see approximately one third of shares in state ownership, one third in the ownership of NLB's key partner and one third in the ownership of portfolio investors. Such a balanced shareholder structure will strengthen the bank's business activities and ensure that the Slovenian character of the bank will be preserved. A listing of NLB's shares on the Ljubljana Stock Exchange is expected by the end of the year.

Following KBC's entry as a significant shareholder in NLB, a new supervisory board of NLB was appointed at the general meeting held in Ljubljana on 4th September 2002. The newly appointed Supervisory Board consists of eleven members: Mr. Anton Zunic, Chairman, Mr. Uros Slavinec, Vice Chairman, Mr. Zvone Ivanusic, Mr. Igor Kusar, Mr. Joze Lenic, Dr. Metka Tekavcic; members from KBC: Mr. Herman Agneessens, Mr. Franšois Louise Florquin, Mr. Dirk Mampaey, Mr. David Michael Truman; member from EBRD: Mr. Victor Pastor. At the inaugural session on September 6th, the Supervisory Board appointed Mr. Pierre Van Keirsbilck from KBC as the fifth member of the NLB's Management Board.

The NLB consolidated group reported pre-tax profit of 53.2 million euros for the six months ended June 2002 and total assets of 7,863 million euros as at 30 June 2002. According to the September 2002 ranking of the Top 300 European Banks (based on capital) published by The Banker, the Financial Times publication, NLB ranks the 199th largest bank in Europe while NLB's new partner, KBC Belgium ranks the 31st largest in Europe.