Current reports

WARSAW, Poland – June 27, 2008 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, announced that on June 27, 2008 Internetia Sp. z o.o. with its seat in Warsaw (“Internetia”), Netia’s subsidiary, purchased from Mr. Piotr Niesterowicz (the “Seller”) 200 shares in the share capital of a company operating under the business name Cybertech Sp. z o.o. with its seat in Białystok (“Cybertech”) with the total nominal value of PLN 50,000 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 of Cybertech (the “Shares”). The total price for the Shares has been set at PLN 4.0 million. This represents an equivalent of the value of Cybertech’s active customers as agreed with the Seller of PLN 3.5 million, increased by balances of the cash and cash equivalents held by Cybertech as well as Cybertech’s receivables from the Seller, and decreased by Cybertech’s debt and overdue liabilities as at June 26, 2008.

Cybertech is a service provider offering broadband Internet access to residential clients in the towns of Białystok in North-Eastern Poland. The company is using FastEthernet technology, which allows for transmission speed of up to 100 Mb/s. As of June 26, 2008, Cybertech’s network provided broadband access to 3,535 clients, with approximately 9,000 households passed.

The acquisition of Shares was effected based on the Shares purchase agreement concluded by Internetia and Cybertech on June 26, 2008.

The acquired Shares constitute assets of substantial value, as they represent 100% of the share capital of Cybertech. The assets described above were acquired from Internetia’s own resources and constitute an investment of a long-term nature.

Apart from the contractual relations described in this report, there exist no other ties between Netia and the persons managing or supervising Netia and the Seller of the aforementioned assets.

This transaction brings the number of FastEthernet acquisitions completed by Netia since mid 2007 to fifteen. The above companies provide broadband access to a total of approximately 50,000 customers, with approximately 164,000 households passed. Extending the reach of Netia’s own infrastructure and customer base via acquisition and integration of such businesses is an important element of Netia’s strategy aimed at acquiring 1 million broadband customers over the next three years.