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16 May 2007

Registered pledges on newly issued shares in P4 Sp. z o.o.

WARSAW, Poland – May 16, 2007 – Netia SA (“Netia” or the “Company”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced, in connection with its press release dated October 31, 2006, that based on the agreement dated May 9, 2007, Netia Mobile Sp. z o.o. (“Netia Mobile”), Netia’s subsidiary, established additional security in the form of registered and financial pledges on its 90 newly issued shares in P4 Sp. z o.o. (the “P4”), PLN 500 par value per share, registered on February 27, 2007 and representing 0.25% of P4’s share capital. The pledges were established in order to secure the repayment of the EUR 150 million credit facility granted to P4, Netia’s related company, by China Development Bank (acting as the Mandated Lead Arranger) in favor of BPH SA (acting as the Security Agent).

The above mentioned newly issued 90 shares are reflected in Netia Mobile’s accounts at the total book value of PLN 9 million and represent an investment of a long-term nature.

All Netia Mobile’s shares in P4 are pledged, the pledges being established on the earlier tranches on October 31, 2006 and February 16, 2007.

Netia received the signed document establishing pledges on the above shares on May 16, 2007.