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06 December 2007

Netia acquires another Internet service provider

WARSAW, Poland – December 6, 2007 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that on December 6, 2007 Internetia Sp. z o.o. with its seat in Warsaw (“Internetia”), Netia’s subsidiary, purchased from Mr. Mariusz Radomski (the “Seller”) 100 shares in the share capital of a company operating under the business name Systemy Informatyczne Netis Sp. z o.o. with its seat in Jastrzębie Zdrój (“Netis”) with the total nominal value of PLN 50,000 for all these shares, which represent 100% of the share capital and confer the right to 100% of the votes at the general meeting of shareholders of Netis (the “Shares”). The total price of all the Shares has been set at PLN 4.0 million.

Netis is a service provider offering broadband Internet access to residential clients in the town of Jastrzębie Zdrój in the Silesian region of Southern Poland. The company is using FastEthernet technology, which allows for transmission speed of up to 100 Mb/s. As of November 27, 2007, Netis’ network provided broadband access to 4,447 clients, with approximately 16,100 households passed.

The acquisition of Shares was effected on December 6, 2007 following the fulfillment of the certain conditions precedent specified in the Shares purchase agreement concluded by Internetia and Netis on November 28, 2007.

The acquired Shares constitute assets of substantial value, as they represent 100% of the share capital of Netis. The assets described above were acquired from Internetia’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. For the current year, Netia plans to acquire over 210,000 broadband Internet access clients, thus becoming the largest alternative telecommunications provider of broadband services in Poland.