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18 May 2001

Netia signs DLD interconnect agreement with TP S.A., and plans domestic long distance service commercial launch for August 2001

WARSAW, Poland - May 18, 2001 - Netia Holdings SA (Nasdaq: NTIA, WSE: NET), Poland's largest alternative fixed-line telecommunications services provider, today announced that its subsidiary Netia 1 has signed an interconnection agreement with Telekomunikacja Polska S.A. in the presence of the President of the Telecommunications Regulatory Office (URT).

The terms of the agreement were defined by the Ministry of Communications in its arbitration decision of December 2000. The agreement was signed one year after Netia 1 was awarded a license to provide nationwide domestic long distance services.

The full commercial launch of Netia's domestic long distance (DLD) services is planned for the middle of August 2001, following a "soft launch" currently planned for July 1, 2001.

Netia will initially provide DLD services in 15 numerical zones, covering Poland's top ten cities as well as other cities and towns adjacent to Netia's backbone network.

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 a nationwide domestic long distance voice license.