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WARSAW, Poland – June 16, 2004 – Netia SA (“Netia” or the “Company”) (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced the new, lower rates for domestic long-distance (“DLD”) and fixed-to-mobile (“FtM”) calls in selected tariff plans, effective June 16, 2004. The changes apply to “Effective Pro” and “Enterprenerial Pro” tariff plans offered to clients of Netia’s direct and indirect voice services as follows: 1. the price per minute of DLD connection during peak hours (i.e., from 8.00 am to 6.00 pm during working days) is reduced from PLN 0.24 net (PLN 0.29 gross) to PLN 0.22 net (PLN 0.27 gross) 2. the price per minute of FtM connection during peak hours (i.e., from 8.00 am to 6.00 pm during working days) is reduced from PLN 0.98 net (PLN 1.20 gross) to PLN 0.89 net (PLN 1.09 gross) 3. the price per minute of FtM connection during off-peak hours (i.e., from 6.00 pm to 8.00 am during working days and all holidays) is reduced from PLN 0.85 net (PLN 1.04 gross) to PLN 0.79 net (PLN 0.96 gross) Detailed price lists with new DLD and FtM rates are available at Netia’s website: www.netia.pl.

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, as well as Current Reports on Form 6-K it has furnished to the Commission since filing its Annual Report. Netia undertakes no obligation to publicly update or revise any forward-looking statements.