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11 January 2000

Netia announces 2000 fixed-line local tariff increase

WARSAW, Poland - January 11, 2000 - Netia Holdings SA (Nasdaq: NTIA), the largest alternative provider of fixed-line local telephone services in Poland, today announced its fixed-line local voice tariff for 2000. The Netia Blue Plan continues to match TP S.A.¿s standard tariffs, while the Netia Green Plan combines a slightly higher monthly fee with cheaper usage charges.

Netia¿s tariff increases follow the new tariffs introduced by state-owned telecommunications provider TP S.A. on January 1, 2000.
As of January 17, 2000, charges for local calls and zone connection will increase as follows:
Blue Plan local charges will increase 12.5%, from PLN 0.24 to PLN 0.27 (PLN 0.33 including VAT). Green Plan local charges will increase 13.0%, from PLN 0.23 to 0.26 per 3 minutes of use (PLN 0.32 including VAT).
As of January 17, 2000, the following increases will also apply:
Monthly subscription fee (net of VAT):
Blue Plan: 33.3% increase from PLN 15 to PLN 20
Green Plan: 27.8% increase from PLN 18 to PLN 23
Additional service fees (net of VAT):
Additional phone socket installation: Increase from PLN 7 to PLN 20
Change of telephone number: Increase from PLN 8 to PLN 15
In addition, Netia will introduce a promotion from January 17 to March 31 during which weekend local calls will be billed at off-peak rates.

NETIA HOLDINGS is the largest alternative fixed-line telecommunications operator in Poland, with 23 licenses for local telecommunications services in territories covering some 13 million people, or approximately 33% of the Polish population.

The Company¿s 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.

Currently the company¿s digital network is serving over 250,000 subscriber lines, of which over 50,000 are dedicated to business customers.

Netia has also secured the benefit of a data and IP license to provide data transmission and internet-based services nationally.