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03 June 2004

Netia minority shareholders’ claims challenging a shareholder resolution

WARSAW, Poland – June 3, 2004 – Netia SA (“Netia” or the “Company”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, announced today that it received claims filed by its minority shareholders Millennium Communications SA and Genesis Sp. z o.o., a subsidiary of Millennium Communications SA, („Shareholders”) requesting the invalidation of a resolution on Netia’s merger with certain of its wholly-owned subsidiaries adopted by the Extraordinary General Meeting of Shareholders held on October 30, 2003 (see release dated October 31, 2003) as, in the Shareholders’ opinion, the resolution was not adopted in compliance with law. In accordance with prior information on this issue (see release dated November 25, 2003), Netia intends to petition the court for the dismissal of the claims as wholly unfounded and request a payment of a tenfold amount of Netia’s court costs by the Shareholders.

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.