Current reports

WARSAW, Poland – December 17, 2005 – Netia SA (“Netia” or the “Company”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that on December 16, 2005 it received a notification from the representatives of Novator Telecom Poland II S.a.r.l., with its seat in Luxembourg, 560A, rue de Neudorf, L-2220 Luxembourg („Novator”) informing that as a result of the transactions effected on the Warsaw Stock Exchange, Novator exceeded the 5% threshold of the aggregate number of votes at the Company’s General Meeting of Shareholders.

 

The Company’s shares which caused the exceeding of the 5% threshold of the aggregate number of votes at the Company’s General Meeting of Shareholders were credited to Novator’s securities account on December 13, 2005. Pursuant to information included in Novator’s notification, as of December 16, 2005, Novator holds 32,255,053 Company’s shares giving the right to exercise 32,255,053 votes at the Company’s General Meeting of Shareholders, which represent 8.04% of the aggregate number of votes at the Company’s General Meeting of Shareholders. As of December 15, 2005, these shares represented 8,04% of the Company’s share capital.

 

In addition, as of December 16, 2005, Novator purchased 7,833,809 Company’s shares giving the right to exercise 7,833,809 votes at the Company’s General Meeting of Shareholders, which represent 1.95% of the aggregate number of votes at the Company’s General Meeting of Shareholders. These shares were acquired in the stock exchange transactions effected in the course of three days preceding the receipt by Netia of Novator’s notification. These shares are not yet credited to Novator’s securities account.

 

Upon crediting Novator’s securities account with these shares, Novator will hold 40,088,862 of the Company’s shares giving the right to exercise 40,088,862 votes at the Company’s General Meting of Shareholders, which would represent, as of December 15, 2005, 9.99% of the aggregate number of votes at the Company’s General Meeting of Shareholders. As of December 15, 2005, these shares would represent 9.99% of the Company’s share capital.

 

Novator is a company controlled by Novator One L.P., a limited liability partnership with its registered address at PO Box 309GT, Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands. Novator is also controlled by Straumur-Burdaras Ltd., an investment bank organized in Island, with its registered address at Borgartun 25, 105 Reykjavik, Island.