Current reports

WARSAW, Poland – December 12, 2008 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, announced that on December 12, 2008 Systemy Informatyczne Netis Sp. z o.o. with its seat in Jastrzębie Zdrój („Netis”), Netia’s subsidiary, purchased from Ms. Joanna Jajonek and Mr. Tomasz Jajonek (the “Sellers”) 100 shares in the share capital of a company operating under the business name Ticom Sp. z o.o. with its seat in Wrocław (“Ticom”) with the total nominal value of PLN 50,000, which represent 100% of the share capital and confer the right to 100% of the votes at the general meeting of shareholders of Ticom (the “Shares”) for the amount of PLN 592,242.32 (say: five hundred ninety two thousand two hundred thirty two 32/100) for all these shares. This price represents an equivalent of the value of Ticom’s active customers as agreed with the Sellers of PLN 573,300, increased by balances of the cash and cash equivalents held by Ticom, and decreased by Ticom’s outstanding liabilities as at December 10, 2008.

Ticom is a service provider offering broadband Internet access to residential clients in the city of Tarnowskie Góry in the Silesian region of Southern Poland. The company is using FastEthernet technology, which allows for transmission speed of up to 100 Mb/s. As of December 10, 2008, Ticom’s network provided broadband access to 819 clients, with approximately 5,000 households passed.

The acquisition of Shares was effected based on the Share purchase agreement (“Share purchase agreement”) concluded by Netis and the Sellers on December 11, 2008 as a result of the payment by Connect of the price indicated above.

The acquired Shares constitute assets of substantial value, as they represent 100% of the share capital of Ticom. The assets described above were acquired from Netis’ 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.

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.