Current reports

WARSAW, Poland – June 21, 2007 – Netia SA (“Netia” or the “Company”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced, in connection with its current report dated May 15, 2007 on signing the credit facility agreement with Rabobank Polska SA, that on June 20, 2007 Netia received the court decisions on entering to the court’s register the following pledges:

1. registered pledge on Netia’s 100 shares in InterNetia Sp. z o.o with its seat in Warsaw (“InterNetia”) with the nominal value of PLN 500 each, representing 100% of InterNetia’s share capital and conferring the right to 100% of the votes at its shareholders’ meeting. The above 100 shares are reflected in Netia’s accounts at the total book value of PLN 50 thousand. The pledge was entered to the register of pledges on June 4, 2007. The pledge was classified by the Company as a pledge on material assets in view of the fact that they were established on more than 20% of InterNetia’s shares;
   
   
2. registered pledge on Netia’s 29,500,000 registered shares in Netia Wimax SA with its seat in Warsaw (“Netia Wimax”) with the nominal value of PLN 1 each, representing 100% of Netia Wimax’s share capital and conferring the right to 100% of the votes at its general shareholders’ meeting. The above 29,500,000 shares are reflected in Netia’s accounts at the total book value of PLN 29.5 million. The pledge was entered to the register of pledges on June 4, 2007. The pledge was classified by the Company as a pledge on material assets in view of the fact that they were established on more than 20% of Netia Wimax’s shares; 
   
   
3. registered pledge on a set of movables and rights constituting an organized part of Netia’s subsidiary Świat Internet SA with its seat in Warsaw (“Świat Internet”) and used by Świat Internet in conducting its telecommunications activities. As at May 31, 2007, the above assets were reflected in Świat Internet’s accounts at the total book value of PLN 938.7 million. The pledge was entered to the register of pledges on June 4, 2007. The pledge was classified by the Company as a pledge on material assets in view of the fact that the value of the above assets exceeds 10% of Netia’s equity;

The above described registered pledges, except for the pledge mentioned in the item 3 above, were established in favor of Rabobank Polska SA in order to secure the repayment of a term loan granted to Netia on May 15, 2007, and are capped at PLN 375 million each pledge. The pledge described in the item 3 above was established to secure the repayment of a revolving loan granted to Netia by Rabobank Polska SA under the same credit facility agreement, and is capped at PLN 75 million.

All aforementioned shares on which the registered pledges were made are Netia’s investments of a long-term nature.

Rabobank Polska SA is an entity not related with Netia.