Current reports

WARSAW, Poland – October 7, 2008 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that on October 7, 2008 Lanet Sp. z o.o. with its seat in Warsaw (“Lanet”), Netia’s subsidiary, purchased from Ms. Maria Mateusiak and Mr. Marek Staniszewski (the “Sellers”) 100 shares in the share capital of a company operating under the business name Seal-Net Sp. z o.o with its seat in Wrocław (“Seal-Net”) 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 votes at the general meeting of shareholders of Seal-Net (the “Shares”), for the total price of PLN 456,115.69 (say: four hundred fifty six thousand one hundred fifteen 69 /100).

Seal-Net is a service provider offering broadband Internet access to residential clients in the town of Kluczbork. The company is using FastEthernet technology, which allows for transmission speed of up to 100 Mb/s. As of October 6, 2008, Seal-Net’s network provided broadband access to 937 clients, with approximately 4.500 homes passed.

The acquisition of Shares was effected following the payment by Lanet of the purchase price specified in the Shares purchase agreement (“Share purchase agreement”) concluded by Lanet and the Sellers on October 6, 2008.

The acquired Shares constitute assets of substantial value, as they represent 100% of the share capital of Seal-Net. 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, 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.