KBC Finalizes Deal To Buy 70% Of Bulgaria's DZI Insurance

Edited Press Release

BRUSSELS (Dow Jones)--Belgian banking group KBC Group NV (KBC.BT) said Fridaythat it has finalized an agreement with Kontrakt Sofia for KBC to acquire a 70%stake in DZI Insurance, the Bulgarian market leader in non-life and lifeinsurance.

Today, KBC has received all the regulatory approvals needed and hassuccessfully closed the acquisition of the 70% stake. KBC plans to launch apublic takeover bid in the near future for the outstanding 30% of DZIInsurance's shares. "Joining a leading financial group such as KBC will offerDZI Insurance new opportunities to strengthen growth. Given the professionalism,enthusiasm and determination of all DZI Insurance employees, insurance agentsand brokers, we are convinced that, together, DZI Insurance and KBC will be ableto grow and further strengthen their position in the league of strong performersin the years to come," said Nedyalko Chandarov, chairman of the management boardand executive director of DZI insurance.

"KBC has been quick to respond to Bulgaria's entry into the European Union,becoming the first Belgian investor in the Bulgarian financial sector," said KBCGroup CEO Andre Bergen. "Today, we have officially become DZI's new shareholder. KBC considers DZI Insurance to be a unique platform to start building a long-term presence in this promising market."Company website: http://www.kbc.com

(END) Dow Jones Newswires 08-03-07 1043ET Copyright (c) 2007 Dow Jones & Company, Inc.