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06 July 2007

Netia signs interconnect agreement with Telekomunikacja Polska

Netia SA concluded with Telekomunikacja Polska SA an interconnect agreement that introduces new rules of cooperation with regard to both operators networks’ connection and mutual exchange of telecommunications traffic, and – in particular – sets new rules of interconnection settlements. The agreement becomes effective on September 30, 2007.

The conclusion of the agreement is the next step in building new relationships between Netia and TP. It will also facilitate the execution on the new Netia strategy and fast development of services, which became available thanks to new regulatory decisions.

‘The agreement will ease up our cooperation with Telekomunikacja Polska and will allow us to sort out both current issues and resolve disputes. The agreement shows our mutual will to keep up and develop good relations between our companies and act according to fair competition rules. The conclusion of this agreement is a natural consequence of regulatory changes and will allow to widen the access to new services,’ said Mirosław Godlewski, CEO of Netia.

The rules of interconnection settlements in the agreement are based on the terms established in TP’s interconnection reference offer approved by the decision of the President of the Office of Electronic Communications (UKE) and are benchmarked to market standards for agreements of a similar type.

The agreement is concluded for an indefinite period of time. Due to the fact that it is not possible to define the exact amount of payments that will result from the agreement, Netia has estimated the value of the agreement to be over PLN 300 million (i.e., an estimated amount of mutual payments, both to and from TP, over a five year period).

Moreover, Netia concluded with TP a number of contracts related to the agreement, which are based on the rules described above and will also become effective as of September 30, 2007. The aforementioned contracts concern the rules of cooperation and mutual settlements between the parties for provisioning: special subscriber services (9xxx-type services), premium-rate services and televoting (0-400 connections); and termination to VoIP subscribers (0-39 connections).

The Agreement and the related contracts will replace all previously binding interconnect agreements between both parties.