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22 April 2005

Netia repurchased its series “C” and “E” shares from the trustee of its 1999 employee stock option plan

WARSAW, Poland – April 22, 2005 – Netia SA (“Netia” or the “Company”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, announced that due to the expiration, as of January 1, 2004, of options to acquire Netia shares under the employee stock option plan adopted in 1999, and in order to fulfill the requirements of the agreements signed on May 17, 2000 with Centralny Dom Maklerski Pekao SA (“CDM Pekao”), a trustee of the above incentive plan, (see the Polish Prospectus of Shares of Netia Holdings SA dated November 30, 1999) as well as to avoid consequences of breaching the agreements, on April 22, 2005, based on the decision No. DIA/S/416/07/05 of the Polish SEC (Komisja Papierów Wartościowych i Giełd), Netia repurchased from CDM Pekao 176,881 of its series “C” shares and 291,767 of its series “E” shares (the “Shares”) at the purchase price of PLN 6 per share, being the nominal value of the Shares at the moment of their issuance.
The Shares, with a nominal value of PLN 1 each, give right to 468,648 votes at Netia’s general meeting of shareholders and represent 0.12% of Netia’s issued and outstanding share capital as of April 5, 2005 (see Netia’s press release dated April 5, 2005).