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22 March 2006

Partial cancellation of outstanding local license fees of Netia’s subsidiary El-Net

WARSAW, Poland – March 22, 2006 – Netia SA (“Netia”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, announced that Regionalne Sieci Telekomunikacyjne El-Net SA, Netia’s subsidiary, received today the decision of the Polish Minister of Transport and Construction, dated March 21, 2006, cancelling part of outstanding local license fee obligations along with the prolongation fees owed in connection with the prior deferrals of the license fee installments, in exchange for investments in the telecommunications infrastructure incurred in years 2001, 2002 and 2003.
The total amount of the local license fees cancelled was EUR 20,940,066. The total amount of the prolongation fees cancelled was PLN 8,565,650.93.