Current reports

WARSAW, Poland – December 17, 2003 – Netia S.A. (“Netia”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced that on December 16, 2003, the Regional Court in Warsaw, XVI Commercial Department resolved the case instituted by a lawsuit filed by Millennium Communications S.A. (“Millennium”) against Netia, to ban Netia from unfair competition practices and for damages of PLN 50,000,000. The Regional Court dismissed in full all demands included in Millennium’s lawsuit and adjudicated that Netia be reimbursed for the costs of the proceeding of PLN 18,000. In the oral justification of the award, the Court pointed out that Millennium failed to support its claims with any reliable evidence. Given the fact that Millennium’s claim was completely groundless, the Regional Court imposed on Millennium the maximum costs of the proceedings permitted under the provisions of procedural law. This award, although not yet final, is yet another verdict issued to Millennium’s disadvantage during a long-lasting dispute between the parties. In February 2003, the Regional Court in Warsaw adjudicated that Millennium must pay Netia PLN 11,500,000 plus contractual interest as a repayment of a loan granted in 2000. In the same case in May 2003, the Court secured the enforcement of the above verdict by attaching all of the shares owned by Millenium in Genesis Sp. z o.o. Millennium is the minor shareholder which filed a claim to the Regional Court in Warsaw requesting the invalidation of a resolution on Netia’s merger with certain of its wholly owned subsidiaries adopted by the Extraordinary General Meeting of Shareholders held on October 30, 2003 (see release of November 25, 2003).