Current reports

WARSAW, Poland - October 21, 2002 - Netia Holdings S.A. ("Netia" or the "Company") (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services (in terms of value of generated revenues), announced that on October 21, 2002, Netia and certain of its Polish subsidiaries (together, the "Polish Netia Companies") entered into an agreement (the "Agreement") with parties (the "Dissenting Parties") who had formally objected to the restructuring of the Polish Netia Companies previously agreed to by more than 95% of the Company's creditors in the arrangement proceedings for the Company approved by the District Court for the City of Warsaw. According to the Agreement, the parties will mutually release each other from any claims they may have relating to the restructuring of the Polish Netia Companies and their Dutch affiliates (each together, being the "Netia Group") and to the Company's investment account in the United States. In consideration of such releases and the Dissenting Parties' agreement to withdraw with prejudice their appeals and/or litigation in Poland and the United States, and to forego any prospective litigation, claims or objections against the Netia Group in any jurisdiction, the Dissenting Parties will be paid upon the conclusion of the restructuring of the Netia Group a sum of $4.1m inclusive of the Dissenting Parties' joint legal and other expenses and have agreed to be treated as all other similar creditors in the restructuring. The Company has obtained the requisite regulatory approvals for the Agreement under Polish law. The Company believes that the Agreement will facilitate the consummation of the restructuring to the benefit of all the Netia Group's customers and stakeholders.

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, its Current Report on Form 6-K filed with the Commission on October 15, 2002 and its Current Report on Form 6-K filed with the Commission on October 17, 2002. The Company undertakes no obligation to publicly update or revise any forward-looking statements.