WARSAW, Poland – May 22, 2006 – Netia SA (“Netia” or the “Company”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that on 22 May 2006 Netia purchased, from Jupiter Narodowy Fundusz Inwestycyjny Spółka Akcyjna, with its seat in Warsaw (“Jupiter”), 64,214 (sixty-four thousand, two hundred and fourteen) bonds exchangeable into the bearer shares series A2, A3, A4, A5, A6, A7, A8, B1, B2, B3 and B4 of the Company (as defined below) constituting 100% of the issued bonds, with a total nominal value of PLN 32,107,000 (thirty-two million, one hundred and seven thousand). The purchase was effected at the nominal value of the bonds.
Furthermore, pursuant to an agreement concluded by Netia and Jupiter, Netia will buy from Jupiter 5,975 ordinary bearer shares of PRO FUTURO SA, with its seat in Warsaw (“PRO FUTURO” or the “Company”), series D, E and F, with a nominal value of PLN 200 each, constituting jointly 75.87% of the Company’s share capital and the corresponding number of votes at the Company’s General Shareholders' Meeting, for a total of PLN 28,750,564.75 (twenty-eight million, seven hundred and fifty thousand, five hundred and sixty-four zlotys and 75/100). The shares will be purchased subject to the satisfaction of the condition precedent of Netia obtaining the consent of the Chairman of the Polish Office for the Protection of Competition and Consumers.
On 22 May 2006, Netia concluded an agreement with dataCOM Spółka Akcyjna, with its seat in Warsaw (“dataCOM”), pursuant to which, Netia will purchase from dataCOM 1,260 ordinary bearer shares of the Company, series A and C, with a nominal value of PLN 200 each, constituting 16% of the Company’s share capital and the corresponding number of votes at the Company’s General Shareholders' Meeting, for a total of PLN 6,062,880.60 (six million, sixty-two thousand, eight hundred and eighty and 60/100). The shares will be purchased subject to the satisfaction of the condition precedent of Netia purchasing shares jointly constituting at least 50% of the Company’s share capital.
If both the abovementioned transactions involving the Company’s shares are effected, Netia will hold 91.87% of the Company’s share capital.
The criterion based on which the assets described above have been classified as assets with a significant value, is that the shares in question represent more than 20% of the share capital of the Company.
The purchase of the Company’s shares and bonds will be financed by Netia from its own resources.
Netia treats the purchase of shares and bonds as a long-term investment.
PRO FUTURO is an independent telecommunications operator providing data transmission, internet access, hosting and VoIP transmission services. It provides the services based on its own broadband telecommunications network (Infostrada Futuro) created based on modern LMDS technologies. The Company provides services based on the Infostrada network in Poland’s largest cities: Warsaw, Łódź, Katowice, Kraków, Kielce, Gdańsk, Gdynia, Szczecin, Wrocław, Poznań, Bielsko-Biała and Lublin.