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29 April 2005

Merrill Lynch withdraws a claim against Netia

WARSAW, Poland – April 29, 2005 – Netia SA (“Netia” or the “Company”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, announced that further to withdrawal of the claim by Merrill Lynch Capital Services, Inc. (“Merrill Lynch”), the High Court of Justice, London, United Kingdom, decided on April 27, 2005 to close with no order as to costs, the court proceedings initiated by claim by Merrill Lynch (Claim No. 2004 Folio No. 188) against the Company, Netia Telekom SA (“Telekom”) and Netia Holdings SA for the payment of USD 8,675,549 (in words: eight million, six hundred and seventy-five thousand, five hundred and forty-nine US dollars), together with accrued interest and legal fees, due in connection with the termination of a swap transaction on December 14, 2001, which had been executed between Telekom and Merrill Lynch on March 30, 2001 (see press release dated May 5, 2004). The claim was withdrawn in connection with subscription of the Company’s series I shares by Merrill Lynch (see press release dated February 16, 2005).