Current reports

WARSAW, Poland - December 18, 2001 - Netia Holdings S.A. (the "Company" or "Netia") (Nasdaq: NTIA, WSE: NET), Poland's largest alternative fixed-line telecommunications services provider today announced that on December 18, 2001, the following resolutions of the Extraordinary General Meeting of Shareholders of the Company were adopted:

Resolution No. 1

Appointment of PricewaterhouseCoopers Sp. z o.o. as the Company's auditors with respect to examining the Company's stand-alone financial statements and the Company's consolidated financial statements for the financial year ending December 31, 2001.

Resolution No. 2

Resolved, pursuant to Article 397 of the Polish Commercial Companies Code, that the Company shall continue its business activities despite the Company's balance sheet prepared by the Company's Management Board on September 30, 2001 showing negative financial results for the current and previous financial years (a loss) of PLN 1,873,618,267.34 (one billion, eight hundred and seventy three million, six hundred and eighteen thousand, two hundred and sixty seven Polish zlotys and 34/100), which exceeds the aggregate of the spare capital, the reserve capital and one-third of the Company's share capital, which amounted to PLN 1,747,959,286.77 (one billion, seven hundred and forty seven million, nine hundred and fifty nine thousand, two hundred and eighty six Polish zlotys and 77/100) on September 30, 2001.

This decision of the Extraordinary General Meeting of Shareholders does not represent a commitment on the part of any shareholder to provide additional capital or financial support to the Company. Netia previously announced plans to engage in discussions with its bondholders concerning a consensual reorganization of its balance sheet to reduce its debt and interest burdens, although the Company cannot guarantee a successful result of such discussions.

Netia is the leading alternative fixed-line telecommunications provider in Poland. Netia provides a broad range of telecommunications services including voice, data and Internet-access and commercial network services. Netia's American Depositary Shares ("ADSs") are listed on the Nasdaq National Market (NTIA), and the Company's ordinary shares are listed on the Warsaw Stock Exchange. Netia owns, operates and continues to build a state-of-the-art fiber-optic network that, at September 30, 2001, had connected 343,634 active subscriber lines, including 93,713 business lines. Netia currently provides voice telephone service in 24 territories through Poland, including in six of Poland's ten largest cities.

Some of the information contained in this news release contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. For a more detailed description of these risks and factors, please see the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F filed with the Commission on April 30, 2001, its Current Report on Form 6-K filed with the Commission on May 15, 2001, its Current Report on Form 6-K filed with the Commission on August 7, 2001, and its Current Report on Form 6-K filed with the Commission on November 6, 2001. The Company undertakes no obligation to publicly update or revise any forward-looking statements.