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16 May 2001

Netia announces changes to the Supervisory Board effective May 17, 2001

Warsaw, Poland - May 16, 2001- Netia Holdings S.A. (Nasdaq:NTIA, WSE:NET), Poland's largest alternative fixed-line telecommunications services provider, today announced that new Telia representatives will be appointed to the Supervisory Board, effective May 17, 2001. The changes follow an organisational change within Telia effective April 1, 2001, as a result of which the new Business Area Telia Networks is directly responsible for Telia's interests in Netia.

Mr. Jan Johansson, Senior Vice President, Management Board member of Telia AB, and Head of Business Area Telia Networks, joined Telia on April 1, 2001 from the Swedish energy company Vattenfall, and will now assume the position of chairman of the Supervisory Board succeeding Mr. Kaj Juul-Pedersen.

Telia has furthermore appointed Mr. Morgan Ekberg and Ms. Charlotta ??berg, both of Business Area Telia Networks, to replace Mr. Hans Golteus and Mr. Martin Henricson, while Mr. Lars Rydin will continue to serve on the Netia's Supervisory Board as Telia representative.

Jan Johansson said, "I am looking forward to working with Netia and telecommunications in Poland - a country I know well from the business of Vattenfall. I am pleased with the market position Netia has created and that the company is well positioned to take advantage of the growth and liberalisation of the Polish telecommunication market."

Kaj Juul-Pedersen said, "It has been a privilege to work in Poland with Netia since 1997, and especially as an active working chairman for the past two years. Over the years Netia has developed to become the leading alternative fixed-line telecommunications provider with nationwide services. I am proud that during my tenure with Netia it became the first Polish company listed both on Nasdaq and Warsaw Stock Exchange. I would like to wish Mattias Gadd, who became CEO in January 2001, Netia's customers, Management Board, employees, and shareholders a good future with the company."

Mattias Gadd, President and CEO of Netia, said, "I welcome our new chairman and Supervisory Board members to the exciting business of Netia and want to express my appreciation to the outgoing members for their contributions to the company. I especially want to thank Kaj Juul-Pedersen for his professionalism in the management change in Netia and for good and friendly assistance in my first months as CEO. Kaj Juul-Pedersen is a good friend of Poland and strives to promote Poland's business prospects and links with Sweden, and I am delighted he has accepted to continue the relationship with Netia in an advisory role."

NETIA HOLDINGS is the largest alternative 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, Kraków, Poznań, Gdańsk, 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 a nationwide long distance voice license.