Current reports

WARSAW, Poland – December 21, 2007 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, announced that on December 21, 2007 its subsidiary Lanet Sp. z o.o. with its seat in Wrocław (“Lanet”) acquired assets of substantial value, i.e., the following shares in telecommunications companies:

Acquisition I:

• 56 shares in the share capital of a company operating under the business name Ozimek Net Sp. z o.o. with its seat in Wrocław with the nominal value of PLN 1,000 each and the total nominal value of PLN 56,000 for all these shares, which represent 100% of the share capital and confer the right to 100% of the votes at the general meeting of shareholders;
• the total price of all the shares has been set at PLN 256,500;
• the acquisition of shares was effected based on the share purchase agreement concluded by Lanet and the sellers on December 19, 2007. In accordance with the share purchase agreement, Lanet paid 69% of the total purchase price. The remaining purchase consideration will be settled by Lanet upon meeting by the sellers the certain conditions specified in the share purchase agreement;
• As of December 21, 2007, the company’s network provided broadband access to 513 clients in the town of Ozimek near Opole, with approximately 3,240 households passed.

Acquisition II:

• 3,000 shares in the share capital of a company operating under the business name Ikatel Telekom Sp. z o.o. with its seat in Wrocław with the nominal value of PLN 50 each and the total nominal value of PLN 150,400 for all these shares, which represent 100% of the share capital and confer the right to 100% of the votes at the general meeting of shareholders;
• the total price of all the shares has been set at PLN 532,000;
• the acquisition of shares was effected based on the share purchase agreement concluded by Lanet and the sellers on December 20, 2007. In accordance with the share purchase agreement, Lanet paid 80% of the total purchase price. The remaining purchase consideration will be settled by Lanet in accordance with a timetable related to the organic growth of the acquired company’s customer base;
• As of December 21, 2007, the company’s network provided broadband access to 572 clients in the city of Wrocław, with approximately 3,220 households passed.

The acquired companies are service providers offering broadband Internet access to residential clients in the towns of Wrocław and Ozimek in the Southern Poland. The companies is using FastEthernet technology, which allows for transmission speed of up to 100 Mb/s. As of December 21, 2007, the companies provided broadband access to a total of 1,085 clients, with approximately 6,460 households passed.

In the case of Acquisition I, the sellers were Gandalf Spółka Jawna K.Kaczmarek i I.Łomzik. In the case of Acquisition II: Mr. Tadeusz Krysmalski.

The shares acquired constitute assets of substantial value, as they represent 100% of the share capital of the entities. The assets described above were acquired from Lanet’s own resources and constitute an investment of a long-term nature.
Apart from the contractual relations described in this report and the fact that the seller of Ozimek Net Sp. z o.o. is a customer of Netia’s telecommunications services, there exist no other ties between Netia and the persons managing or supervising Netia and the sellers of the aforementioned assets.

The acquisition represents yet another step in execution of Netia’s strategy aimed at acquiring 1 million broadband customers over the next three years, including consolidation of local Ethernet networks.

In addition, Netia informs that it corrects the wording of its press release dated December 19, 2007 with regard to the first name of one of the sellers of Inet Sp. z o.o. company to Lanet from “ Tomasz Chrzanowski” to “Grzegorz Chrzanowski”.