WARSAW, Poland – November 25, 2005 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that it received on November 25, 2005 a decision of the district court, dated November 17, 2005 on registration of the pledge on 10,260 (ten thousand two hundred sixty) shares in P4 Sp. z o.o. with its seat in Warsaw (“P4”) owned by Netia Mobile Sp. z o.o. with its seat in Warsaw (“Netia Mobile”), Netia’s subsidiary (see Netia press release dated October 27, 2005). Netia Mobile was previously operating under the company name Netia Ventures Sp. z o.o. The pledge was established based on the agreement on registered pledge on shares for the benefit of Novator Poland Pledge Sp. z o.o. with its seat in Warsaw (“Novator”) in order to secure the performance by Netia Mobile of the claims that may arise due to failure by Netia Ventures to perform certain obligations under the Shareholders Agreement (see press release No 72/2005 dated August 23, 2005). Maximum amount of collateral equals to EUR 25,000,000 (twenty five million). The nominal value of said shares equals PLN 5,130,000 (five million one hundred and thirty thousand). The shares represent 29.9% of current P4’s share capital and authorize their holder to exercise 10,260 votes at the shareholders’ meeting of P4. P4 shares are Netia Mobile’s investment of a long-term nature. As a result of said registration, all shares in P4 currently held by Netia Mobile are covered by registered pledge (see press release No. 86/2005 dated September 27, 2005).
In addition, Netia received today a decision of the district court on registration of the pledge for the benefit of Netia Mobile on all shares held by Novator Telecom Poland SARL (“Novator Telecom”) in P4 on the same terms as indicated above in order to secure performance by Novator Telecom of the claims that may arise due to failure by Novator Telecom to perform certain obligations under the Shareholders Agreement.