Netia acquires another Internet service provider
WARSAW, Poland – September 27, 2007 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that on September 26, 2007 Lanet Sp. z o.o. with its seat in Wrocław (“Lanet”), Netia’s subsidiary, purchased from Mr. Adam Kinal (the “Seller”) 1,200 shares in the share capital of a company operating under the business name Akron Sp. z o.o. with its seat in Wrocław (“Akron”) with the total nominal value of PLN 1,200,000 for all these shares, which represent 99.9% of the share capital and confer the right to 99.9% of the votes at the general meeting of shareholders (the “Shares”). The total price of all the Shares has been set at PLN 800,000. Prior to this transaction, Lanet owned the shares representing 0.1% of Akron’s share capital.
Arkon is a service provider offering broadband Internet access to residential clients in the city of Wrocław. The company is using FastEthernet technology, which allows for transmission speed of up to 100 Mb/s. As of September 25, 2007, Akron’s network provided broadband access to 1,151 clients, with approximately 5,000 households passed.
The acquisition of Shares was effected based on the share purchase agreement concluded by Lanet and Akron on September 25, 2007.
The acquired Shares constitute assets of substantial value, as they represent 99.9% of the share capital of Akron. The assets described above were acquired from Lanet’s own resources and constitute an investment of a long-term nature.
Apart from the contractual relations described in this report, there exist no other ties between Netia and the persons managing or supervising Netia and the Seller of the aforementioned assets.
The acquisition represents yet another step in execution of Netia’s strategy aimed at acquiring 1 million broadband customers over the next three years, including consolidation of local Ethernet networks. The earlier acquisition of three Internet service providers, including Lanet, (see Netia’s press release dated June 7, 2007) allowed Netia to expand dynamically its broadband customer base in the cities of Wrocław, Poznań and Legnica, and the recent acquisition was effected using local knowledge of Lanet’s management team.