Current reports

WARSAW, Poland – December 29, 2003 – Netia S.A. (“Netia”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced that the Polish Minister of Infrastructure issued the decisions, dated December 23, 2003, canceling the outstanding local license fee obligations along with the prolongation fees owed in connection with the prior deferrals of the license fee installments, in exchange for investments in the telecommunications infrastructure incurred in 2001 and 2002, to Netia’s three subsidiaries: Netia Telekom Telmedia S.A., Netia Telekom Mazowsze S.A. and Netia Telekom Silesia S.A. The total amount of the local license fees cancelled was approximately EUR 91.4 million. The total amount of the prolongation fees cancelled was approximately PLN 15.8 million. Based on the received decisions, the outstanding local license fee obligations of the Netia group companies to be recorded in the financial results for the fourth quarter of 2003 will be reduced to zero. This cancellation will be reflected partly as a decrease in the value of the licenses and partly in the statements of operations. The above-mentioned decrease in the value of licenses is connected with the impairment test performed in the third quarter of 2003.

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, its Current Report on Form 6-K filed with the Commission on August 8, 2003, its Current Report dated August 13, 2003, its Current Report dated September 23, 2003, its Current Report dated October 1, 2003, its Current Report dated November 4, 2003 and its Current Report dated November 6, 2003. Netia undertakes no obligation to publicly update or revise any forward-looking statements.