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18 April 2008

Netia acquires a company with rights of access to telecom infrastructure in Wrocław area (acquisition of assets of substantial value) (20/2008)

WARSAW, Poland – April 18, 2008 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, announced that today Netia’s subsidiary Lanet Sp. z o.o. with its seat in Wroclaw (“Lanet”) concluded an agreement for the acquisition of assets of substantial value, i.e. 100 shares in the share capital of a company operating under the business name KOM-NET Systemy Komputerowe Piotr Szulc I Henryka Szulc Sp. z o.o. with its seat in Wrocław with the nominal value of PLN 500 each and 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.

The total price of all these shares has been set at PLN 128,606, i.e., PLN 1,286.06 per one share.
The purchase of the shares was effected in execution of an agreement signed by Netia with the sellers, Ms. Henryka Szulc and Mr. Piotr Szulc, on April 17, 2008.

The acquired company owns the rights of access to the telecommunications infrastructure in the city of Wrocław in the Southern Poland. The purchase transaction will facilitate the acquisition of new customers as well as the operational integration of Ethernet networks in the Wrocław area, which were purchased previously by Lanet (see Netia’s press releases dated December 19 and 21, 2007 and January 31, 2008).

The acquired shares constitute assets of substantial value, as they represent 100% of the share capital of the entity.
The assets described above were purchased from Lanet’s own resources and constitute an investment of a long-term nature.

Apart from the contractual relations described in this report and the fact that Mr. Piotr Szulc sold in 2007 to Netia his shares in an Internet service provider KOM-NET Systemy Komputerowe Sp. z o.o. (see press release dated June 7, 2007) and serves as a management board member in one of Netia’s subsidiaries, there exist no other ties between Netia and the persons managing or supervising Netia and the sellers of the aforementioned assets.