Current reports

WARSAW, Poland - October 16, 2002 - Netia Holdings S.A. ("Netia") (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services (in terms of value of generated revenues), announced today that on October 15, 2002 it received a ruling (the "Ruling") of the Polish Chamber of Commerce Arbitration Court (the "Arbitration Court") dated October 1, 2002, regarding the case between the Company and Millennium Communications S.A. ("Millennium") and Newman Finance Corporation ("Newman") in connection with the Share Subscription Agreement dated August 8, 2000 (the "Share Subscription Agreement"). The Arbitration Court dismissed Millennium and Newman's direct claims against the Company for: (i) declaration of the Share Subscription Agreement void and ineffective and (ii) payment of PLN 11,500,000 by the Company. The Arbitration Court also dismissed the Company's counter-claim for damages in the amount of PLN 8,500,000. The Company's management board intends to petition the proper court of law to set aside the Ruling, claiming, among other things, material breaches of material law and arbitration procedures by the Arbitration Court. A separate action by the Company against Millennium for the repayment of a loan in the amount of PLN 11,500,000 is still pending before the District Court in Warsaw.

Some of the information contained in this news release contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. For a more detailed description of these risks and factors, please see the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F filed with the Commission on March 28, 2002, its Current Report on Form 6-K filed with the Commission on April 3, 2002, its Current Reports on Forms 6-K filed with the Commission on May 6, 2002, its Current Report on Form 6-K filed with the Commission on May 7, 2002, its Current Report on Form 6-K filed with the Commission on May 20, 2002, its Current Report on Form 6-K filed with the Commission on May 24, 2002, its Current Report on Form 6-K filed with the Commission on June 28, 2002, its Current Report on Form 6-K filed with the Commission on July 2, 2002, its Current Report on Form 6-K filed with the Commission on July 31, 2002, and its Current Report on Form 6-K filed with the Commission on August 2, 2002, its Current Reports on Form 6-K filed with the Commission on August 6, 2002, its Current Report on Form 6-K filed with the Commission on August 9, 2002, its Current Report on Form 6-K filed with the Commission on August 15, 2002 its Current Report on Form 6-K filed with the Commission on August 16, 2002, its Current Report on Form 6-K filed with the Commission on August 28, 2002, its Current Report on Form 6-K filed with the Commission on August 30, 2002, its Current Report on Form 6-K filed with the Commission on September 16, 2002, its Current Report on Form 6-K filed with the Commission on September 20, 2002, its Current Report on Form 6-K filed with the Commission on September 24, 2002, its Current Report on Form 6-K filed with the Commission on October 1, 2002 and its Current Report on Form 6-K filed with the Commission on October 15, 2002. The Company undertakes no obligation to publicly update or revise any forward-looking statements.