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14 September 2000

Internetia reduces price for internet access and offers internet access at flat rate

WARSAW, Poland - September 14, 2000 - Netia Holdings SA (NASDAQ: NTIA, WSE: NET), Poland's largest alternative fixed-line telecommunications services provider, today announced that its 100% owned subsidiary Internetia is reducing the tariffs for dial-up Internet access. The price reduction will be effective as of September 15, 2000.

Under the new tariff, prices will be reduced by 20% per pulse to the following level:

  • 0.23 PLN + 22% VAT for Netia subscribers with blue tariff and subscribers of other operators
  • 0.22 PLN + 22% VAT for Netia subscribers with green tariff

The calculation method of the connection times will also be changed as follows:

  • During peak hour (8:00 am - 6:00 pm on business days) a pulse will be charged every 3 minutes
  • During off-peak hours (6:00 pm - 8:00 am on business days and all day, Saturday, Sunday and public holiday) a pulse will be charged every 6 minutes

In addition, beginning on September 15, 2000 Netia dial-up customers located within the reach of Netia's access network will have the option of accessing the Internet at a flat rate. The monthly fee of 56.56 PLN + 22% VAT will cover up to 100 hours of internet browsing per monthly billing cycle.

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. 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.