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29 April 2004

New VAT charges imposed on Netia’s Internet access services

WARSAW, Poland - April 29, 2004 - Netia SA („Netia”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced that in connection with the enforcement of the VAT Act dated March 11, 2004, new VAT charges will imposed on Internet access services provided by Netia, effective May 1, 2004. These services provided for schools and educational institutions, individuals not running businesses, state-owned and municipal cultural institutions will be tax-exempt. For all other entities Internet access services will be charged with 22% of VAT. Detailed price lists of Internet access services will be available at www.netia.pl.

 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, as well as Current Reports on Form 6-K it has furnished to the Commission since filing its Annual Report. Netia undertakes no obligation to publicly update or revise any forward-looking statements.