Current reports

Warsaw, Poland - May 10, 2000 - Netia Holdings S.A. (Nasdaq: NTIA), Poland¿s largest alternative telecommunications services provider, today announced that it has filed with the U.S. Securities and Exchange Commission a registration statement on Form F-3 registering an offer to sell up to 2,587,500 of its American Depositary Shares. Netia Holdings S.A. and its wholly owned subsidiary, Netia Holdings II B.V., concurrently filed with the U.S. SEC a registration statement on Form F-3 registering the offer and sale by Netia Holdings II B.V. of EUR 150,000,000 of its Senior Notes due 2010 and the related guarantees of Netia Holdings. Both registration statements were filed pursuant to Section 5 of the U.S. Securities Act of 1933.

 

Concurrently with the offering, the Company expects to complete its pending initial floatation of its shares on the Warsaw Stock Exchange and the sale of 2,250,000 shares to Telia AB of Sweden, the Company¿s largest shareholder. As a result of the ADS offering, and the Warsaw floatation, the Company expects to issue an additional 2,250,000 new shares. The Company will use the proceeds of these offerings, along with the proceeds of the Telia subscription and the senior notes offering, to fund a portion of the capital requirements for the build-out of its network, its license fee obligations, its working capital requirements and for general corporate purposes.

 

NETIA HOLDINGS is the largest alternative fixed-line telecommunications operator in Poland. In March 2000, Netia won the tender for the Warsaw voice telephony license. Including Warsaw, Netia has 24 licenses for local telecommunications services in territories covering some 15 million people or approximately 40% of the Polish population. The Company¿s existing local telephone license territories cover five of the country¿s ten largest urban areas including Krakow, Poznan, Gdansk, Lublin, Katowice and several territories surrounding the city of Warsaw. Netia has also secured the benefit of a nationwide data and IP license to provide data transmission and Internet-based services. In February 2000, the Netia 1 consortium was awarded a nationwide domestic long distance voice license.