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29 January 2001

Netia convenes Extraordinary Shareholders' Meeting to propose increase in share capital

WARSAW, Poland - January 29, 2001 - Netia Holdings SA (Nasdaq: NTIA, WSE: NET), Poland's largest alternative fixed-line telecommunications services provider, today announced that it will hold an Extraordinary Shareholders' Meeting in Warsaw on February 19, 2001, to suggest amendments to the Company Statute, relating to an increase in share capital, rules of remunerating the supervisory board's members, as well as the method of conveying the supervisory board's meetings.

Netia will propose an increase in the company's share capital by up to 1.14% from PLN 188,515,032 to up to PLN 190,660,170 through the issuance of up to 357,523 ordinary bearer series H shares with a nominal value of PLN 6.00. The issuance is in connection with Stoen S.A.'s, the Warsaw electricity distribution company, delivery of a notice that it elects to exercise its right to subscribe for the Company's shares in exchange for shares in Netia 1, and because of Telia AB having the right to make an exchange in the coming months.

NETIA HOLDINGS is the largest alternative fixed-line telecommunications operator in Poland. Netia has 24 licenses for local telecommunications services in territories covering some 15 million people or approximately 40% of the Polish population. The Company's existing local telephone license territories cover six of the country's ten largest urban areas including Warsaw, Krakow, Poznan, Gdansk, Lublin and Katowice. Netia has also secured the benefit of a nationwide data and IP license to provide data transmission and Internet-based services. In May 2000 the Netia 1 consortium was issued the nationwide domestic long distance voice license.