Current reports

WARSAW, Poland - December 21, 2001 - Netia Holdings S.A. (the "Company" or "Netia") (Nasdaq: NTIA, WSE: NET), Poland's largest alternative fixed-line telecommunications services provider today announced today that an "event of default" occurred as of the close of business today under the cross-currency swap agreement between Netia's subsidiary Netia Holdings III B.V. and JP Morgan Chase Bank entered into on January 18, 2001. Netia also announced today that, the event of default under the swap may have triggered the cross-default provisions of the indentures governing the 10 1/4% Senior Dollar Notes due 2007 of Netia Holdings B.V., the 11 1/4% Senior Discount Dollar Notes due 2007 of Netia Holdings B.V., the 11% Senior Discount DM Notes due 2007 of Netia Holdings B.V., the 13 1/8% Senior Dollar Notes due 2009 of Netia Holdings II B.V., the 13 1/2% Senior Euro Notes due 2009 of Netia Holdings II B.V. and the 13 3/4% Senior Euro Notes due 2010 of Netia Holdings II B.V. and, as a result, an "event of default" may have occurred as of the close of business under the indentures governing those notes.

Netia is engaged in discussions with JP Morgan as to the renegotiation of the swap. Netia is engaged also in discussions with its bondholders concerning a consensual reorganization of its balance sheet to reduce its debt and interest burdens.

In addition, Netia announced today that on December 20, 2001, its Supervisory Board adopted a resolution authorizing its Management Board to commence the procedures necessary to convene a meeting of shareholders of Netia to, among other matters, approve a capital increase to allow Netia to issue shares if required in connection with its reorganization of its balance sheet and possibly to raise additional equity capital. Netia also announced that certain existing shareholders and third parties have given indications of investment interest in Netia, although Netia cannot give any assurance that such indications will result in the investment of additional capital or the provision of financial support to the Company. To date, no formal agreements have been reached with any existing shareholder or third party concerning additional funding.

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.