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22 December 2008

Netia acquires another Internet service provider (73/2008)


WARSAW, Poland – December 22, 2008 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, announced that on December 22, 2008 Internetia Sp. z o.o. with its seat in Warsaw (“Internetia”), Netia’s subsidiary, purchased from Swisscom Central & Eastern Europe AG with its seat in Bern, a company incorporated under the laws of Switzerland, and Air Bites Slovakia s.r.o. with its seat in Bratislava, a company incorporated under the laws of Slovakia, (the “Sellers”) 57,719 shares in the share capital of a company operating under the business name Air Bites Polska Sp. z o.o. with its seat in Kraków (“Air Bites”) with the total nominal value of PLN 28,586,500 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 Air Bites (the “Shares”). The total price for the Shares has been set at PLN 21,654,926. This price represents an equivalent of the value of Air Bites’ active customers as agreed with the Sellers of PLN 20,813,100, increased by its cash and cash equivalents.

Air Bites is a telecommunications operator offering principally broadband Internet access to residential clients in 14 Polish towns, primarily in Southern Poland (Rybnik, Wodzisław Śląski, Kraków, Kędzierzyn Koźle, Sanok, Suwałki, Zdzieszowice, Piaseczno, Głogów, Bielsko-Biała, Chorzów, Mysłowice, Wrocław, Katowice). The company is using FastEthernet technology, which allows for transmission speeds of up to 100 Mb/s. As of December 18, 2008, Air Bites’ network provided broadband access to 24,486 clients, with approximately 105,000 households passed.

The acquisition of Shares was effected based on the Share purchase agreement concluded by Internetia and the Sellers on December 18, 2008.

The acquired Shares constitute assets of substantial value, as they represent 100% of the share capital of Air Bites. 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 Sellers 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.