Current reports

WARSAW, Poland – May 22, 2003 – Netia Holdings S.A. (“Netia”) (WSE: NET, NET2), Poland's largest alternative provider of fixed-line telecommunications services, today announced the outline of its five-year business strategy, as approved by Netia’s Supervisory Board. The recently adopted strategy includes the following major objectives:

Vision To be Poland’s provider of choice for business communications services.

Mission To provide a comprehensive range of value added telecommunications services focusing future growth and product development on meeting the needs of business clients while maintaining its commitment to best practice in delivering services to the mass market. We will strive to ensure the highest level of customer satisfaction and offer advanced solutions, including data transmission, Internet and broadband services in addition to traditional voice products.

Strategy To continue to build on Netia’s record of double-digit revenue growth and increasing EBITDA margins by expanding its range of business-based services. This will be achieved through: (i) acquisitions, (ii) economically justified network extensions, increasing our available footprint through organic build-out and/or assets acquisitions, and (iii) introduction of new products and services. Investment in the mass market segment will be allocated to customer retention, churn reduction and maintenance of the existing customer base. Netia's development will be financed from Netia's own resources and savings created by: (i) optimization of the mass market segment, (ii) implementation of additional operational improvements within Netia, and (iii) financial synergies arising from mergers with acquired companies. However, the acquisitions of large entities, including mergers, may require additional financing.

Key Business Objectives 1. Introduce new products and services for the business segment following client needs and technological trends; 2. Reorganize the way in which commercial services are delivered to business clients by providing key accounts and significant corporate customers, i.e., those clients generating or expected to generate a substantial portion of Netia’s revenues, with improved levels of service. This will require a reorganization of the relevant units within Netia and appropriate reallocations of operating and capital investments; 3. Optimize the level of service and expenses allocated to the mass market segment by capitalizing on efficiencies available with the newly implemented customer relationship management (CRM) system; 4. Acquire other telecommunications operators which support Netia’s strategic focus on the business segment as demonstrated by the recent acquisition of TDC Internet Polska S.A.; and 5. Deliver attractive average annual growth rates in double digits and consistent earnings for investors demonstrated by steady year-on-year operating margin improvements, with revenues doubling and EBITDA margins reaching 35% by 2008.

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, its Current Report on Form 6-K filed with the Commission on October 25, 2002, its Current Report on Form 6-K filed with the Commission on November 5, 2002, its Current Report on Form 6-K filed with the Commission on November 5, 2002, its Current Report on Form 6-K filed with the Commission on November 6, 2002, its Current Report on Form 6-K filed with the Commission on November 18, 2002 , its Current Report on Form 6-K filed with the Commission on November 21, 2002, its Current Reports on Form 6-K filed with the Commission on December 3, 2002, its Current Reports on Form 6-K filed with the Commission on December 10, 2002, its Current Report on Form 6-K filed with the Commission on December 23, 2002, its Current Report on Form 6-K filed with the Commission on January 8, 2003, its Current Report on Form 6-K filed with the Commission on January 16, 2003, its Current Report on Form 6-K filed with the Commission on January 29, 2003, its Current Report on Form 6-K filed with the Commission on February 3, 2003, its Current Report on Form 6-K filed with the Commission on February 13, 2003, its Current Report on Form 6-K filed with the Commission on February 14, 2003, its Current Report on Form 6-K filed with the Commission on February 25, 2003, its Current Report on Form 6-K filed with the Commission on March 10, 2003, its Current Report on Form 6-K filed with the Commission on March 18, 2003, its Current Report on Form 6-K filed with the Commission on April 8, 2003, its Current Report on Form 6-K filed with the Commission on April 24, 2003, its Current Report on Form 6-K filed with the Commission on May 7, 2003 and its Current Report on Form 6-K filed with the Commission on May 7, 2003 . Netia undertakes no obligation to publicly update or revise any forward-looking statements.