Changes in Netia 1 consortium capital base
Following the January 1, 2001 introduction of the new Polish Telecommunications Act, which lifts foreign ownership restrictions on telecommunications operators in Poland, and pursuant to the Netia 1 consortium agreement, Netia Holdings SA will acquire 548,944 shares of Netia 1 for the Polish zloty equivalent of USD 14.4 million. In addition, the Company intends to acquire a further 133,233 Netia 1 shares in exchange for stock of Netia Holdings SA.
The changes in Netia 1 capital are carried out at the request of several Netia 1 Polish members, including PKO B.P., Tele-Tech Investment (an affiliate of BRE Bank SA), and STOEN SA. Warsaw electric utility STOEN SA informed Netia that it intends to exchange its Netia 1 shares for stock of Netia Holdings SA. The companies are considering the most effective procedures to execute this transaction.
NETIA HOLDINGS S.A. 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. Netia, with the Swedish operator Telia AB as a strategic partner, is the first Polish company to be listed both on Nasdaq and the Warsaw Stock Exchange.