Capital increase of Netia Holdings S.A. in connection with the exercise of warrants
WARSAW, Poland – July 10, 2003 – Netia Holdings S.A. (“Netia”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced that as of July 10, 2003, it issued 123,669 series J shares at an issue price of PLN 2.53 per share upon the exercise of 66,514 two-year subscription warrants and 57,155 three-year subscription warrants by their holders. Each series J share entitles its holder to one vote at Netia’s general meeting of shareholders. Netia’s series J shares are publicly traded on the Warsaw Stock Exchange (“WSE”) under code No. PLNETIA00014, the same code as all other ordinary shares of Netia. As a result of this issuance of these shares there are currently: (a) 32,357,707 two-year subscription warrants traded on the WSE under the ticker “NETPPO2”, entitling their holders to subscribe for Netia’s series J shares by April 29, 2005; and (b) 32,367,066 three-year subscription warrants traded on the WSE under the ticker “NETPPO3”, entitling their holders to subscribe for Netia’s series J shares by April 29, 2006. Following the issuance of these shares, Netia’s issued and outstanding share capital equals PLN 344,168,881 and is divided into 344,168,881 shares, PLN 1 par value per share. The outstanding shares give rise to 344,168,881 votes at Netia’s general meeting of shareholders. A motion for the registration of the share capital increase by the Polish court was filed on July 7, 2003. A second motion for the registration of the share capital increase by the Polish court will be filed by August 6, 2003. The subscription warrants were exercised in accordance with Netia’s Polish prospectus, dated April 17, 2002, as amended. Under Polish law, Netia is required to report in Poland its share capital increase each time subscription warrants are exercised. For the purpose of U.S. reporting, Netia will announce the share capital increases, if any, in the form of a press release once a month. Current information on Netia’s share capital will be updated on Netia’s website each time any warrants are exercised.
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 Netia's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F filed with the Commission on June 27, 2003 and its Current Report on Form 6-K filed with the Commission on June 30, 2003. Netia undertakes no obligation to publicly update or revise any forward-looking statements.