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26 July 2005

Netia plans concerning WiMax

WARSAW, Poland – July 26, 2005 – Netia SA (“Netia” or “Company”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that on July 25, 2005, Netia Globe SA (“Netia Globe) and Netia Świat SA (Netia Świat) were announced by the President of URTiP winners of the tender for frequency reservations in the 3.6 – 3.8 GHz band. The President of URTiP selected three entities, which have the right to file applications for the frequency reservations. Each reservation covers one pair of duplex channels with a bandwidth of 2x3.5 MHz, a total of 14 MHz of radio spectrum, to be used by December 31, 2020.
Netia, the owner of Netia Globe and Netia Świat, plans to use the above mentioned frequencies to provide telecommunication services based on the WiMax technology. As a result, the Company will be in a position to expand country-wide quickly and cost effectively, including the new areas beyond its existing fixed line network where previously such expansion was difficult to justify economically. The WiMax based access network will be used to provide high quality data and voice transmission.
The new WiMax network will interconnect with Netia’s fiber-optic backbone infrastructure and integrate seamlessly with its existing access network. Netia will also benefit from synergies between the WiMax and UMTS networks build-out thanks to the site sharing and common utilization of transmission equipment.
Currently Netia is discussing delivery dates and financing terms with potential technology providers.