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12 August 2008

Update of Netia’s guidance for 2008 (40/2008)

The Management Board of Netia SA (hereinafter the “Company” or “Netia”), almost six months after the announcement of Netia’s 2008 original forecast (please see Netia’s current report dated 28 February 2008), hereby provides an updated guidance of the Company for 2008.

Following the strong first half of 2008, revenue guidance is being raised from PLN 950.0m to PLN 960.0m – PLN 975.0m (EUR 286.2m – EUR 290.1m). Customer base targets are being maintained, along with EBITDA guidance at PLN 125.0 (EUR 37.3m).

The unchanged EBITDA guidance reflects forecasts for the second half of 2008 that include increased acquisition expenses to support accelerated organic growth, incremental fixed network costs associated with the higher number of LLU nodes to be rolled-out and an absence of one-off gains from significant non-core asset divestments.

Projected capital investment savings allow for a PLN 40.0m (EUR 11.9m) cut in anticipated capital expenditures to PLN 240.0m (EUR 71.6m). Moreover, this lower amount should cover an additional 25 nodes to be unbundled during 2008. At the same time, funding for bolt-on acquisitions of Ethernet operators is being increased to PLN 60.0m (EUR 17.9m) due to the increasing potential of the deal pipeline.

In view of the uncertain closing date for the Tele2 Polska Sp. z o.o. acquisition (please see Netia’s current report dated June 30, 2008), full-year guidance including Tele2 Polska Sp. z o.o. will not be given until the close of the transaction.

Guidance for 2008:

2008 Guidance



Number of broadband service clients

  > 400,000

  > 400,000

Number of voice service clients (own network and WLR)

> 580,000

> 580,000

Unbundled local loop (LLU) nodes



Revenues (PLN m)

> 950.0

960.0 – 975.0

of which regulatory start-up losses for the development of the regulatory
access methods (i.e., bitstream access, local loop unbundling, wholesale
line rental) and reaching 400,000 broadband subscribers



Investment outlays (excl. M&A) (PLN m)



M&A investment in Ethernet networks (PLN m)



Netia would also like to announce that it will continue to monitor the possibilities of achieving the forecast results on a quarterly basis. The achievement of the forecast results will be assessed, and any necessary adjustments introduced, after the end of a given quarter of the financial year based on an analysis of sales revenues, investment expenditure and the number of broadband clients.

None of the information contained in this press release is a recommendation to purchase or sell financial instruments within the meaning of the Regulation of the Minister of Finance on information constituting recommendations regarding financial instruments or their issuers, dated 19 October 2005 (Polish Journal of Laws (Dz. U.) of 2005, No. 206, item 1715). For a more detailed description of the risks involved in investing in Netia’s securities, please see Netia’s annual financial report of 1 March 2007. Subject to the obligations referred to herein, Netia is not required to publicly update or revise any of its forecasts and assumptions of the strategic objectives.

Legal basis:
Paragraph 5.25 of the Regulation of the Minister of Finance on current and periodical information to be disclosed by issuers of securities, dated 19 October 2005 (Polish Journal of Laws (Dz. U.) of 2005, No. 209, item 1744).