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24 April 2012

Issuance of Netia's series K shares and acquisition of shares by the Company’s Management Board members (30/2012)

WARSAW, Poland – April 24, 2012 – Netia SA (“Netia” or the “Company”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, announced that on April 23, 2012 it was notified about the settlement of a transaction by Krajowy Depozyt Papierów Wartościowych SA (National Depository of Securities) (“KDPW”), as a result of which on April 20, 2012 the Company issued from its authorized capital 1,019,366 ordinary bearer series K shares with a nominal value of PLN 1 each (“Series K Shares”), which give the right to 1,019,366 votes at Netia’s general meeting of shareholders.

The Series K Shares were issued due to the exercise of stock options by three Management Board members. These stock options were granted under the performance stock option plan adopted by Netia’s Supervisory Board on June 28, 2002, as amended. By resolution No. 218/03 of May 14, 2003, the Management Board of KDPW assigned the Series K Shares with the PLNETIA00097 code.

Netia’s issued and outstanding share capital, following this issuance is PLN 386,169,783 and represents 386,169,783 shares, PLN 1 par value per share, each share giving the right to one vote at Netia’s general meeting of shareholders.

The Series K Shares were issued due to the exercise of rights attached to 1,019,366 ordinary bearer Series III notes, authorizing their holders to subscribe for the Series K Shares prior to the Company’s shareholders, having a nominal value of 1 grosz (PLN 0.01) each (“Series III Notes”). In connection with the exercise of rights from the Series III Notes, the Company bought and redeemed 1,019,366 Series III Notes.

Pursuant to the above, Netia received the following notifications regarding the subscription of newly issued Series K Shares of the Company for the issue price of PLN 1 per share, in compliance with the prospectus for the Company shares and bonds dated 17 April 2002, as amended, following the exercise of options granted pursuant to the Plan (for details please see the attachment below).