Current reports

WARSAW, Poland - October 31, 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), today announced that, in accordance with the terms of the restructuring agreement entered into earlier this year with its noteholders, Netia Holdings B.V. ("BV I"), one of Netia's Dutch finance subsidiaries, will not make the following interest payments due on November 1, 2002 on certain notes: (i) US$10,250,000 on the 101% Dollar Notes due 2007 issued by BV I, (ii) US$10,887,000.50 on the 111% Discount Dollar Notes due 2007 issued by BV I and (iii) EUR 5,822,801.57 on the 11% Discount DM Notes due 2007 issued by BV I.

In addition, these interest payments are not being made by the Company in accordance with the Dutch Court's grant on July 12, 2002 of provisional payment suspensions on the repayment of all obligations of BV I and Netia's other two Dutch finance subsidiaries.


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 Netia'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, its Current Report on Form 6-K filed with the Commission on October 17, 2002, its Current Report on Form 6-K filed with the Commission on October 22, 2002 and its Current Report on Form 6-K filed with the Commission on October 25, 2002. Netia undertakes no obligation to publicly update or revise any forward-looking statements.