WARSAW, Poland – May 8, 2006 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced its share capital has increased in connection with the exercise of certain warrants issued by Netia.
I. Share Capital.
As of May 1, 2006, Netia’s issued and outstanding share capital was PLN 387,962,865 and represented 387,962,865 shares, PLN 1 par value per share, each share giving right to one vote at Netia’s general meeting of shareholders.
The above amount of share capital takes into account the decrease of Netia’s shares capital by redemption of 28,162,110 treasury shares, which was resolved by Netia’s annual shareholders’ meeting held on March 29, 2006 (see Netia’s press release dated March 29, 2006) and registered by court on April 19, 2006 (see Netia’s press release dated April 26, 2006).
A motion for the registration of the share capital increase as of May 1, 2006 by the Polish court was filed on May 8, 2006.
II. Warrants Issued.
As of May 1, 2006, Netia issued 61,259,088 series J shares pursuant to the exercise of 31,062,274 two-year subscription warrants by their holders, who subscribed for series J shares authorized from these warrants until April 29, 2005 (see Netia’s press release dated May 6, 2005), and 30,196,814 three-year subscription warrants pursuant to the settlement by Krajowy Depozyt Papierów Wartościowych SA (Polish National Depositary for Securities) (“KDPW”) until May 1, 2005 (inclusive) of part of transactions regarding the exercise of Netia’s three-year subscription warrants by their holders, who subscribed for series J shares authorized from these warrants until April 29, 2006 (see Netia’s press release dated March 30, 2006) at an issue price of PLN 2.53 per share. Each series J share entitles its holder to one vote at Netia’s general meeting of shareholders. Netia’s series J shares are publicly traded on the Warsaw Stock Exchange (“WSE”) under the same code as all other ordinary shares of Netia i.e. PLNETIA00014.
The subscription warrants were exercised in accordance with Netia’s Polish prospectus, dated April 17, 2002, as amended.
III. Series K shares issued.
Until May 1, 2006, Netia issued 4,945,065 series K shares in connection with the exercise of certain options granted under the performance stock option plan adopted by Netia’s supervisory board on June 28, 2002, as amended. The total number of series K shares that may be issued under this plan will not exceed 18,373,785 shares.
IV. Updated Information on Netia’s Share Capital.
Current information on Netia’s share capital increases is constantly updated and made available at the Polish National Depositary for Securities and WSE as well as on Netia’s website (www.investor.netia.pl). The share capital as currently registered by the Polish court, in the amount of PLN 386,062,498, reflects, with respect to series J shares, the status as of April 1, 2006, and will be amended following the consideration of the motions for the share capital increase and decrease to filed with the court on May 8, 2006.
Share capital increases in connection with the exercise of Netia’s outstanding warrants and options will be announced in the form of a press release once a month by the 8th day of each month, and, in addition, each time in the event of an exercise of warrants constituting 5% or more of all warrants issued by Netia.