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WARSAW, Poland – August 29, 2003 – Netia S.A. (“Netia”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced that it was informed by Montpelier Asset Management Ltd (the “Shareholder”) that as of August 29, 2003, the Shareholder and its subsidiaries jointly held: (a) 20,501,503 shares of Netia, and (b) 5,577,925 subscription warrants, entitling the Shareholder to acquire Netia’s series J shares. In addition, Nicholas Cournoyer, Managing Director of Montpelier Asset Management Ltd and the Chairman of Netia’s supervisory board, owned 3,000 shares of Netia as of August 29, 2003. The Shareholder informed Netia that upon conversion of all of its subscription warrants into series J shares, all Netia shares held by the Shareholder will give right to approximately 7.45% of the total number of votes at the general meeting of shareholders and will represent approximately 7.45% of Netia’s outstanding share capital. Previously, as of June 30, 2003, the Shareholder and its subsidiaries jointly held 33,972,573 Netia shares, representing approximately 9.87% of Netia’s then outstanding share capital and 9.87% of the total voting power at Netia’s general meeting of shareholders. In addition, Nicholas Cournoyer, Managing Director of Montpelier Asset Management Ltd and the Chairman of Netia’s supervisory board, owned 3,000 shares of Netia as of June 30, 2003. 20,501,503 Netia shares held by the Shareholder and its subsidiaries include, among others, 15,178,150 Netia shares held by Consulta Emerging Markets Debt Fund Ltd (“Consulta”), a subsidiary of Montpelier Asset Management Ltd. 15,178,150 Netia shares held as of August 29, 2003 by Consulta give right to approximately 4.41% of the total number of votes at the general meeting of shareholders and represent approximately 4.41% of Netia’s outstanding share capital (without taking into account any subscription warrants held by the Shareholder and its subsidiaries). In accordance with information delivered to Netia by the Shareholder, Consulta sold in total 5,773,285 Netia’s shares between August 14, 2003 and August 28, 2003. Previously, as of June 30, 2003, Consulta held 20,951,435 Netia shares representing approximately 6.09% of Netia’s then outstanding share capital and 6.09% of the total voting power at Netia’s general meeting of shareholders.

 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.