Current reports

WARSAW, Poland - November 18, 1999 - Netia Holdings SA (Nasdaq: NTIA), the largest alternative fixed-line telephone operator in Poland, today announced that on November 16, 1999, Netia Holdings II B.V., a financing subsidiary of Netia Holdings S.A., has completed the exchange offers for any and all of its outstanding 13 1/2 % Senior Euro Notes due 2009 and 13 1/8 % Senior Dollar Notes due 2009.

 

The 1999 Notes in the respective amounts of Euro 100 million and $100 million were originally issued on June 10, 1999 in a private offering addressed to institutional investors in Europe and the USA. Under the terms of the exchange offers, all such notes tendered by their holders were exchanged for identical Series B notes which have been registered with the US Securities and Exchange Commission and which can be traded without restrictions by all holders in the United States. Concurrently, the company has applied for listing of the new Series B notes on the Luxembourg Stock Exchange.

 

The completion of the exchange offers, in which notes in the respective aggregate amounts of Euro 99.85 million and $94.9 million were exchanged for the registered Series B notes, is an important event for Netia as yet another reminder of the Company's ability to tap the world's capital markets to ensure the success of its major network construction efforts in Poland.

 

NETIA HOLDINGS is the largest alternative fixed-line telecommunications operator in Poland, with 23 licenses for local telecommunications services in territories covering some 13 million people, or approximately 33% of the Polish population. The Company¿s local telephone license territories cover six of the country¿s ten largest urban areas including Krakow, Poznan, Gdansk, Lublin, Katowice, Opole and several territories surrounding the city of Warsaw. Netia has also secured the benefit of a data and IP license to provide data transmission and internet-based services nationally.