Current reports

WARSAW, Poland – August 28, 2003 – Netia S.A. (“Netia”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced that it informed the Local Employment Office in Warsaw of its plan to reduce its headcount by up to 300 employees countrywide by March 31, 2004. The planned headcount reduction is a part of the ongoing process of Netia’s reorganization, focused on simplifying its organizational structure and internal processes and aimed at a continuous effort to increase Netia’s competitiveness through, among others, cost optimization.

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 June 27, 2003, its Current Report on Form 6-K filed with the Commission on June 30, 2003 and its Current Report on Form 6-K filed with the Commission on August 8, 2003. Netia undertakes no obligation to publicly update or revise any forward-looking statements.