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12 May 2006

Completion of the arrangement proceedings of Netia Telekom SA

WARSAW, Poland – May 12, 2006 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that it received a decision of the Regional Court in Warsaw dated May 4, 2006, on completion of the arrangement proceedings of Netia Telekom SA (“Netia Telekom”), of which Netia is legal successor (see Netia’s press release dated December 31, 2003), further to full repayment of receivables provided in the arrangement plan adopted by Netia Telekom and its creditors (see Netia’s press releases dated June 24 and 27, 2002).
Arrangements proceedings of Netia Telekom constituted a part of the court arrangement proceedings performed in connection with the financial restructuring of Netia Group.