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WARSAW, Poland – November 21, 2008 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, announced that on November 21, 2008 it received a notification filed on behalf of Third Avenue Management LLC (“TAM LLC”) that ownership of Netia’s shares, held by Third Avenue Management on behalf of its clients, has increased above the threshold of 20% of the total number of votes at Netia’s general meeting.

According to the notification, as a result of the settlement on November 18, 2008 of purchases of Netia shares effected on the Warsaw Stock Exchange (“WSE”), as of the latter date TAM LLC holds 85,501,841 Netia shares, representing 21.96% of Netia’s share capital and entitling the holder thereof to exercise 85,501,841 votes, which represents 21.96% of the total number of votes at Netia’s general meeting. Prior to the above transaction, TAM LLC held 72,908,460 Netia shares, which represented 18.73% of Netia’s share capital, and was entitled to 72,908,460 votes, representing 18.73% of the total number of votes at Netia’s general meeting. 

Furthermore, the management board of Netia announces that on November 21, 2008 it received a notification submitted on behalf of Third Avenue International Value Fund (“TAIVF”) that ownership of Netia shares held by TAIVF increased over 10% of the total number of votes at the general meeting of the Company. The increase in the shareholding of TAIVF over 10% of the total number of votes at the general meeting of the Company resulted in an increase in the shareholding of TAM LLC over 20% of the total number of votes at the general meeting of the Company due to the fact that TAM LLC is entitled to exercise voting right from the shares held by TAIVF.

According to the notification, as a result of the settlement on November 18, 2008 of purchases of Netia shares effected on the WSE, as of the latter date TAIVF holds 44,087,832 Netia shares, representing 11.33% of Netia’s share capital and entitling the holder thereof to exercise 44,087,832 votes, which represents 11.33% of the total number of votes at Netia’s general meeting. Prior to the above transaction, TAIVF held 32,494,984 Netia shares, which represented 8.35% of Netia’s share capital, and was entitled to 32,494,984 votes, representing 8.35% of the total number of votes at Netia’s general meeting.

In addition, TAIVF informed that it does not exclude the possibility of further acquisition of Company shares during the 12 month period following notification filing. However, in undertaking a decision on further acquisition of Company shares, the Fund will be guided by economic considerations and the goal of achieving maximum profit for its investment. The ability of the Fund to acquire further shares of the Company will depend on their market price.