Current reports

WARSAW, Poland – June 2, 2004 – Netia SA (“Netia” or the “Company”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, announced today that on June 1, 2004, the District Court in Warsaw (the “Court”) dismissed at the first hearing a claim filed by its minority shareholder Millennium Communications SA, requesting the invalidation of a resolution adopted at Netia’s Extraordinary General Meeting of Shareholders held on August 30, 2002 with regard to extending the mandates of certain members of Netia’s supervisory board (see release of October 31, 2002). The Court recognized the claim to be wholly unfounded and filed “in order to disorganize the Company’s activities”. Therefore, the Court adjudicated that Netia be reimbursed by Millennium Communications SA with tenfold costs of the proceeding. The ruling is not yet final.