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WARSAW, Poland – April 18, 2007 – Netia SA (“Netia” or the “Company”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services today announced the main assumptions of its operational strategy and guidance for 2007:

Mission

To be the preferred choice for broadband services.

Vision

To be the fastest-growing communication service provider in Poland by:

• satisfying our customers’ needs for fully featured, high quality broadband services;
• creating value through dynamic growth of our customer base;
• providing an inspiring, performance-driven and entrepreneurial work environment.

Main strategic objectives

1. Gain broadband services leadership:

• reach 1 million broadband customers (*).

2. Leverage PLAY investments by:

• introducing fixed-mobile convergent services in 2008;
• achieving cost and infrastructure synergies at the group level.

3. Optimize Netia’s strong position in the business market segment by:

• increasing significantly the number of SOHO & SME clients;
• increasing profitability of large corporate clients while minimizing capital expenditures.

4. Introduce changes to the organizational culture to support a strategy focused on value growth by:

• strengthening employees’ values such as focusing on clients’ needs, reaching objectives, entrepreneurial drive and trust.

5. Invest for profitable growth:

• achieving an industry-leading revenue compound average growth rate during 2007-2009;
• maximizing utilization of the existing assets;
• achieving strong EBITDA growth by 2009 and positive free cash flow by 2010 as a result of three years of investment in broadband services of up to PLN 700 million.

Guidance for 2007

1. Number of broadband clients. Netia intends to have more than 200,000 broadband clients by the end of 2007, in comparison to 57,000 clients as at the end of 2006.
2. 2007 revenues are forecasted to reach a level of PLN 830-865 million.
3. Adjusted 2007 EBITDA is forecasted to reach PLN 130 million. The forecast of adjusted 2007 EBITDA allows for start-up losses of up to PLN 80 million connected with the investments in new client access methods made available under the applicable regulatory decisions, i.e., bitstream access, wholesale line rental and local loop unbundling.
4. 2007 investment outlays are expected to be up to PLN 300 million.

Netia would also like to inform that it will continue to monitor the possibilities of achieving its guidance on a quarterly basis. The achievability of the guidance will be assessed, and any necessary adjustments introduced, after the end of the given quarter of the financial year to which the forecast relates. The assessment and adjustment, if any, will be based on an analysis of sales revenues, investment outlays and the number of broadband clients.


(*) The total number of clients using broadband services through the use of various access methods, e.g. xDSL within Netia’s own copper network, WiMax, bitstream (BSA) and through local loop unbundling via TP SA’s network.

Disclaimer:
The information regarding Netia’s strategy contained in this press release does not constitute a forecast of results within the meaning of the Regulation dated 19 October 2005 on Current and Periodic Information to be Disclosed by Issuers of Securities (Polish Journal of Laws (Dz. U.) of 2005, No. 209, item 1744). None of the information contained in this press release is a recommendation to purchase or sell financial instruments within the meaning of the Regulation of the Minister of Finance on information constituting recommendations regarding financial instruments or their issuers, dated 19 October 2005 (Polish Journal of Laws (Dz. U.) of 2005, No. 206, item 1715). For a more detailed description of the risks involved in investing in Netia’s securities, please see Netia’s annual financial report of March 1, 2007. Subject to the obligations referred to herein, Netia is not required to publicly update or revise any of its forecasts and assumptions of the strategic objectives.