17 June 2002

Netia launches new Internet service


WARSAW, Poland - June 17, 2002 - Netia Holdings S.A. (Nasdaq: NTIAQ, WSE: NET), Poland's largest alternative fixed-line telecommunications services provider, today announced the launch of a new service, "Internet flat rate," a service for non-Netia directly connected customers using the dial-up Internet access service offered by Netia.

This new service complements Netia's existing service offerings, under which "Internet flat rate" was available to Netia directly connected customers only. By introducing this new service, a greater number of users will be able to connect to the Internet for a specified number of hours each month at a pre-determined flat rate. The usage is measured on a per-minute basis.

The service is available to users who activate Netia's dial-up service located in the following numbering zones: Warsaw, Poznan, Radom, Siedlce, Lublin, Katowice, Pila, Kalisz, Wloclawek and Kielce.


Internet serviceMonthly flat rate
in PLZ net
VAT (7%)Monthly flat rate
in PLZ gross
Internet 50
(50 hours monthly)
70.004.9074.90
Internet 100
(100 hours monthly)
100.007.00107.00
Internet nightly
(Unlimited access to Internet
from 00:00 to 06:00 a.m.)
50.003.5053.50

If a user's monthly limit is exceeded, additional minutes of Internet access are billed according to the tariff selected by the customer.


Some of the information contained in this news release contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. For a more detailed description of these risks and factors, please see the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F filed with the Commission on March 28, 2002, its Current Report on Form 6-K filed with the Commission on April 3, 2002, it Current Reports on Forms 6-K filed with the Commission on May 6, 2002, its Current Report on Form 6-K filed with the Commission on May 7, 2002, its Current Report on Form 6-K filed with the Commission on May 20, 2002, and its Current Report on Form 6-K filed with the Commission on May 24, 2002. The Company undertakes no obligation to publicly update or revise any forward-looking statements.