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02 June 2000

Netia sets terms of its international equity and debt offerings

WARSAW, Poland - June 2, 2000 - Netia Holdings SA (Nasdaq: NTIA), Poland's largest alternative telecommunications services provider, has announced the pricing of its international offering of 1,125,000 American Depositary Shares at $25.00 per ADS through a syndicate led by Donaldson, Lufkin & Jenrette and its Polish offering of 1,125,000 ordinary shares priced at PLN 110.00 per share (with a 30% discount on 50,000 shares sold to employees). Total equity proceeds raised, including 2,250,000 new shares purchased by Telia A.B., were over $110,000,000.

Netia Holdings S.A. also announced the pricing of Euro 200,000,000 of 13 3/4 % Senior Notes due 2010 of Netia Holdings II B.V., guaranteed by Netia Holdings S.A. and offered through a syndicate led by Donaldson, Lufkin & Jenrette and Chase Manhattan International Limited. Due to high interest in the offering of Senior Notes, Netia Holdings S.A. increased the aggregate amount of the Notes being offered from Euro 150,000,000 as previously contemplated.

The Senior Notes have been assigned a "B+" rating by Standard & Poor's, Fitch IBCA and Duff & Phelps Credit Rating Service, and a "B2" rating by Moody's Investor Service.

NETIA HOLDINGS is the largest alternative fixed-line telecommunications operator in Poland. In March 2000, Netia won the tender for the Warsaw voice telephony license. Including Warsaw, 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 five of the country's ten largest urban areas including Krakow, Poznan, Gdansk, Lublin, Katowice and several territories surrounding the city of Warsaw. 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.