Current reports

WARSAW, Poland – May 5, 2006 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that on May 4, 2006, following the expiration of the subscription warrants program, Netia repurchased 31,419,172 series I ordinary bearer notes, PLN 0.01 par value per each, and 1,005,154 series II ordinary bearer notes, PLN 0.01 par value per each, (jointly “Notes”), issued by Netia based on the Shares and Notes Prospectus dated April 17, 2002 (“Prospectus”). According to the provisions of the Prospectus the Notes were repurchased from the trustee after the three-year period following their issuance, at the price of PLN 0.01 per Note. At the same date, in connection with the repurchase, the Notes were deregistered from the depositary accounts by the National Deposit of Securities (“KDPW”). The Notes were redeemed at the time of their repurchase.