Current reports

WARSAW, Poland – September 29, 2003 – Netia SA (“Netia”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced that the Deposit Agreement, dated August 3, 1999 (as subsequently amended, the “Deposit Agreement”), between Netia, The Bank of New York (the “Depositary”) and the owners and beneficial owners of the American Depositary Receipts (“ADRs”) issued thereunder, terminated today in accordance with the terms of the Deposit Agreement and pursuant to the termination notice distributed by the Depositary to holders of Netia’s ADRs earlier this year. As a result of termination of the Deposit Agreement, the Depositary has lost the right to make the distribution of dividends and other distributions to holders of Netia’s ADRs and will not provide any further notices or perform any further acts under the Deposit Agreement. The Depositary will continue to collect from Netia the dividends and other distributions pertaining to deposited shares and will continue to deliver the deposited shares, together with any dividends and other distributions pertaining to deposited shares, in exchange for the ADRs surrendered to the Depositary. Holders of Netia’s ADRs will be able to submit their ADRs to the Depositary in order to exchange such ADRs for deposited shares until Friday, March 26, 2004. Commencing Monday, March 29, 2004, the Depositary may sell all remaining deposited shares on the Warsaw Stock Exchange and hold the net proceeds of such sales for the benefit of ADR holders. The Depositary will distribute the net proceeds of any such sales to ADR holders who did not submit their ADRs to the Depositary for exchange.