On the General Meeting of Mercator's shareholders, where 67,45 % of share capital were present, the conclusion was adopted according to which the distributable net profit amounting to SIT 5.962.162.991,95 as of 31st December,2003 will be distributed as follows :

• a part of the distributable net profit derived from the net profit of the year 2000 in the amount of SIT 704.022.701,67, and a part of the distributable net profit derived from other reserves from the profit, i.e. from the undistributed profit of business year 1998, amounting to SIT 900.229.298,33 which was transferred into distributable net profit according to the decision of Management Board and Supervisory Board, are to be used for the dividend pay out in gross value of SIT 500,00 per ordinary share;
• a part of the distributable net profit derived from the total net profit of the business year 2003, amounting to SIT 4.357.910.991,95 will be allocated to other reserves from the profit.

By this conclusion the shareholders have also relieved the Management Board and Supervisory Board of their liabilities for the business year 2003.

The dividends will be paid out to all the shareholders registered as shareowners at KDD on the 28th May, 2004, within 60 days after the adoption of the conclusion.

For the professional and responsible work done in the year 2003 the shareholders have granted a reward to the members of Supervisory Board in the total gross value of SIT 62.896.833,00.

For execution of an audit for the year 2004 the shareholders have repeatedly appointed the auditing firm Pricewaterhouse Coopers, d.o.o., Ljubljana.

All the conclusions were adopted such as proposed by the Management Board and Supervisory Board, whereas, the profit was increased by other reserves from the profit, derived from undistributed profit of the year 1998 in the value of SIT 900.229.298,33, so that the profit from the Profit and Loss Statement as per 31 December 2003, amounts to SIT 5.962.162.991,97 and not to SIT 5.061.933.693,62 as suggested in the Propositions for conclusions when convening the general meeting.

Poslovni sistem Mercator, d.d.
Management Board

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