WARSAW, Poland – October 25, 2005 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that it received a notification from PZU Asset Management SA, made on behalf of its clients PZU SA and PZU Życie SA, stating that as a result of the sale of 215,408 Netia’s shares by PZU SA on October 19, 2005, the ownership of Netia’s shares held by the PZU Group decreased below the threshold of 5% of the total number of votes at Netia’s general meeting of shareholders.

 

According to the notification, PZU SA and its subsidiary PZU Życie SA, jointly hold 19,660,441 of Netia’s shares, which constitutes 4.98% of the Netia’s share capital, and entitles the holders thereof to exercise 19,660,441 votes at Netia’s General Meeting of Shareholders, constituting 4.98% of the total number of votes at Netia’s General Meeting of Shareholders.