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17 May 2002

Netia comments on Telia ducts leasing agreement

WARSAW, Poland - May 17, 2002 - Netia Holdings S.A. (Nasdaq: NTIAQ, WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced that one of its subsidiaries, Netia Telekom S.A., received notice from Telia International Carrier AB that Telia was of the opinion that the Agreement for the Provision of Ducts made between Telia's subsidiary, Prima Communications Sp. z o.o., and Netia Telekom S.A. has expired due to the non-fulfillment by April 15, 2002 of all of the conditions specified in the agreement. Telia also indicated its interest in continuing discussions with Netia regarding the utilization of Netia's backbone network. Netia Telekom S.A. believes that the conditions to which Telia International Carrier AB refers were reserved on Netia Telekom S.A.'s behalf, and therefore the existing agreement remains valid and does not require the execution of an additional agreement. Netia Telekom S.A. intends to undertake the necessary steps with an aim to fulfill the agreement.

Some of the information contained in this news release contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. For a more detailed description of these risks and factors, please see the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F filed with the Commission on March 28, 2002, it Current Report on Form 6-K filed with the Commission on April 3, 2002, it Current Reports on Forms 6-K filed with the Commission on May 6, 2002, and its Current Report on Form 6-K filed with the Commission on May 7, 2002. The Company undertakes no obligation to publicly update or revise any forward-looking statements.