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WARSAW, Poland – December 17, 2005 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that on December 16, 2005, it received a notification from a proxy representing Nicholas Cournoyer and Montpelier Asset Management Limited (“Montpelier”) as well as the following funds managed and advised by Montpelier and Mr. Cournoyer: Consulta Emerging Markets Debt Fund Limited, Ashfield Investments N.V., Chelsea Investments L.P., Cusco LLC and Bessemer Trust Company, stating that in the course of sale of the Company’s shares between December 9 and December 15, 2005, the aggregate holding of Company’s shares by the above mentioned funds decreased below 5% of the total number of votes in the Company.

 

Until December 9, 2005, Nicholas Cournoyer and the funds indicated above, which are managed and advised by Montpelier and Mr. Cournoyer, jointly held 23,265,666 of Netia’s shares, which represented 5.7984% of the Company’s share capital and entitled their holders to exercise 23,265,666 votes representing 5.7984% of the total number of votes in Netia. The holding of Company’s shares by the above mentioned entities dropped below 5% of the total number of votes in the Company as a result of the transactions effected on December 12, 2005.