WARSAW, Poland – September 20, 2004 – Netia SA (“Netia”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced that its subsidiary, Netia Mobile Sp. z o.o., with its seat in Warsaw (“Netia Mobile”), has been registered by the relevant Polish court. The shares in Netia Mobile were acquired solely by the existing Netia’s wholly-owned subsidiaries. The share capital of Netia Mobile equals PLN 50,000 and is divided into 100 shares, PLN 500 par value per share. Netia Mobile’s shares were acquired by Netia Ventures Sp. z o.o. (99 shares constituting 99% of Netia Mobile’s share capital) and Netia Globe SA (1 share constituting 1% of Netia Mobile’s share capital) at the par value price of PLN 500 per share. The shares acquired by Netia Ventures Sp. z o.o. and Netia Globe SA constitute a right to 99% and 1% of votes at the general meeting of shareholders of Netia Mobile, respectively. Netia Ventures Sp. z o.o. and Netia Globe SA financed the transaction from their own capital. The book value of Netia Mobile in the accounts of Netia Ventures Sp. z o.o. and Netia Globe SA amount to PLN 51,366.02 and PLN 500, respectively. The acquisition will be treated as a long-term investment.