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07 July 2000

Netia launches Poland's first pre-paid domestic long-distance card

WARSAW, Poland - July 7, 2000 - Netia Holdings SA (Nasdaq: NTIA), Poland's largest alternative fixed-line telecommunications services provider, today announced the introduction of its pre-paid domestic long-distance service cards in the Warsaw region. Later this month the service will also be available to customers in Gdańsk, Katowice, Kraków and Poznań.

Netia will offer non-rechargeable calling cards, available at certain retail stores throughout Poland, at a cost of PLN 15. Netia's pre-paid long-distance card customers will pay 20% less than when connecting through TP S.A., the national operator.

The service will be available to all fixed-line telephone users in the five regions. The card users will be able to connect with any number in Poland and the same card will be valid in all zones.

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.