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05 July 2000

Netia announces changes in tariffs

WARSAW, Poland - July 5, 2000 - Netia Holdings SA (Nasdaq: NTIA), Poland's largest alternative fixed-line telephone operator, today announced changes in its telecommunications tariffs.

Netia's tariff changes follow the new tariffs introduced by state-owned telecommunications provider TP S.A. as of July 1, 2000. The changes apply to an increase in monthly fees and local call charges as well as a decrease in charges for domestic long distance calls made over 100 km. The Netia Blue Plan continues to match TP S.A.'s tariff while the Netia Green Plan combines a slightly higher monthly fee with lower usage charges.

New charges, effective as of July 1, 2000, are as follows:

Monthly subscription fee (net of VAT):
Blue Plan: 25% increase from PLN 20 to PLN 25
Green Plan: 21.7% increase from PLN 23 to PLN 28

Local charges (net of VAT):
Blue Plan: 7.4% increase from PLN 0.27 to PLN 0.29 per impulse
Green Plan: 7.7% increase from PLN 0.26 to PLN 0.28 per impulse

Charges per 1 minute for domestic long distance calls over 100 km:

8am - 6pm
8am - 6pm
weekends & holidays
6pm - 8am
all days
Before 1st of July 2000BlueNet0.640.480.32
After 1st of July 2000BlueNet0.560.420.28

In addition, Netia will introduce a promotion for local calls from July 1 to August 31, 2000 during which time off-peak hours will extend from 6.00 pm to 8.00 am. Calls made in off-peak hours are charged per every 6 minutes in opposition to 3 minutes during the peak hours. During the promotion weekend and holiday calls will also be billed at this off-peak rate.

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. In July 2000 Netia received the Warsaw local voice license.