Warsaw, Poland - March 18, 1999
Netia Holdings, the largest alternative provider of fixed-line local telephone services in Poland, announced today that the Management Board has called for a meeting of the company's shareholders to be held on April 15, 1999 to approve a capital increase in the amount of US$50 million.
Earlier this year, Netia Holdings S.A. increased its capital by issuing new shares to Telia AB, its strategic partner, for approximately US$24 million in cash. This increase was completed on March 12, 1999 with a court registration of the new shares, which enlarged Telia's interest to 33.24% of all outstanding capital stock of Netia Holding S.A. At the same time, Telia also consolidated its interest in Netia Holdings S.A. by exchanging all of its interest in two subsidiary companies, Netia South Sp. z o.o. and Netia Telekom S.A., for the stock of the parent holding company.
Mr. Meir Srebernik, the President of Netia Holdings S.A., said that the latest US$50 million capital increase will help the company meet its aggressive build-out targets set for the development of telecommunications networks in Gdansk, Gdynia, Katowice, Krakow and Poznan. In addition, this capital increase will also aid the company in its preparations for developing new areas of the telecommunications business.
During 1998, Netia installed nearly 90,000 new ringing lines (or approximately 10% of all new ringing lines installed in Poland). Mr. Srebernik commented that, throughout 1998, Netia continued to enhance its position as Poland's leading independent fixed-line operator, strengthened its brand awareness and installed more lines in service than all of the other independent operators combined.