Current reports

WARSAW, Poland – July 14, 2004 – Netia SA (“Netia”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced that pursuant to a resolution of the Management Board of the Warsaw Stock Exchange (“WSE”), dated July 13, 2004, 290,279 series K ordinary bearer shares of Netia with a nominal value of PLN 1 each, assigned by Krajowy Depozyt Papierów Wartościowych w Warszawie SA (National Depository of Securities) with the PLNETIA00097 code, (the “Shares”), were admitted to trading on WSE. The Shares will commence trading on WSE on July 16, 2004, provided that, on the same day the Polish National Depository for Securities will assimilate the Shares with the remaining Netia’s shares identified by a code “PLNETIA00014”. The series K shares are being issued within Netia’s authorised capital in connection with the execution of the performance stock option plan adopted by Netia’s supervisory board on June 28, 2002, as amended (the “Plan”). So far Netia issued under the Plan 771,011 series K shares, including the shares being admitted to trading currently.