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30 March 2001

Netia's supervisory board approves long-term strategy

WARSAW, Poland - March 30, 2001 - Netia Holdings SA (Nasdaq: NTIA), the largest alternative provider of fixed-line local telephone services in Poland, today announced that the Supervisory Board approved the company's long-term strategy as presented by President and CEO Mattias Gadd. Netia's long-term strategic goal remains to be the preferred telecommunications services provider in a broad range of segments of the Polish market as well as establish a leadership position in the Polish alternative fixed-line telecom sector.

In the short to medium term Netia will focus additional resources on providing telephone and selective data services to the more profitable business segment of the Polish market as well as Internet services. In order to achieve these short-term goals, Netia will focus on being more efficient and responsive to customer needs. The Company will achieve this by allocating resources to new business development, including streamlining the service offering and strengthening the field organization. The company anticipates the rationalization to lead to a staff reduction of around 10% over the year.

Netia's investment levels in 2001 will be maintained at an equally high level as seen in previous years, or approximately USD 200 million. The investments include the completion of national backbone, which is perceived to support Netia in entering the future lucrative wholesale capacity and carriers' carrier business.

Netia's President and CEO, Mattias Gadd remarked: "Being able to reconfirm the long-term strategic vision of the company, with critical qualifications in the short-term, gives me confidence that the company and its management team are in a good position to focus on improving the execution of Netia's business plan and thereby enabling the company to take advantage of the future opportunities in a more open and deregulated market."

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, which include the most economically advanced parts of the country. 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.