We have observed a signal for the decay D0'K»0. We find that a broad threshold enhancement in the K+K- mass spectrum in the decay D0'K+K-K»0 is the main source of background to the D0'K»0 signal. Accounting for this background, we obtain the branching fraction B(D0'K»0)=(1.18±0. 40±0.17)%.
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