Current reports

WARSAW, Poland - December 14, 2001 - Netia Holdings S.A. (the "Company" or "Netia") (Nasdaq: NTIA, WSE: NET), Poland's largest alternative fixed-line telecommunications services provider, announced that its subsidiary Netia Telekom S.A. terminated today its currency swap agreement entered into with Merrill Lynch Capital Services on March 30, 2001 ("the Agreement"). The Agreement was entered into in connection with the interest payments on Netia Holdings B.V.'s 2007 Senior Dollar Discount Notes and 2007 Senior DM Discount Notes.

The Agreement was terminated by mutual consent of the parties, and the termination became effective immediately. The Agreement was terminated due to a planned debt restructuring by the Company. The Company is of the opinion that the termination of the Agreement will not have material impact on the financial situation of Netia Telekom S.A. or the entire Netia Group.

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.