WARSAW, Poland – March 30, 2006 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that on March 30, 2006 Netia transferred to P4 Sp. z o.o. with its seat in Warsaw (“P4”) ownership of 100 shares of Netia Ventures Sp. z o.o. with its seat in Warsaw (“Netia Ventures”), with total nominal value PLN 50,000 (fifty thousand), representing 100% of the share capital and authorizing their holder to exercise 100 of votes at the shareholders’ meeting of Netia Ventures.
The shares have been sold based on a share sale agreement dated March 24, 2006 (“Agreement”) for the total price of PLN 75,000 (seventy five thousand). According to the provisions of the Agreement, the ownership of the shares was transferred to P4 upon receipt of the purchase price payment. Currently Netia Ventures does not run and has never been running any commercial activity.
Netia holds 30% of the share capital of P4 through Netia Mobile Sp. z o.o., its 100% subsidiary. The remaining 70% of P4’s share capital is held by Novator Telecom Poland S.a.r.l., which, similarly to Novator Telecom Poland II S.a.r.l., Netia’s shareholder (see press release dated 25.01.2006), is 100% subsidiary of Novator One L.P. (see press releases dated 24.02.2006 and 23.08.2005). The position of the Chairman of the Supervisory Board of P4 is held by Wojciech Madalski, President of Netia’s Management Board.