Netia Unveils Internet Strategy

Business Wire, April 13, 2000

Business & High Tech Editors

WARSAW, Poland--(BUSINESS WIRE)--April 13, 2000

Netia Holdings SA (Nasdaq: NTIA), Poland's largest alternative fixed-line telephone operator, today unveiled its Internet strategy for Internetia, Netia's 100% owned subsidiary.

Netia's Internet strategy focuses on providing a superior quality service through its state-of-the-art networking, access platforms and customer-oriented initiatives. With approximately 3,000 km of intra- and inter-city fiber-optic network and a voice telephony license area covering more than 40% of the population, Netia is already well positioned to drive the Polish online revolution and establish Internetia as the country's leading Internet service and content provider.

Through partnerships with software and media companies, Netia will participate in developing portals and E-commerce platforms, starting with the launch of a consumer portal developed together with one of Poland's leading radio broadcasting companies Radio Zet, owned by EuroZet.

Netia's Internet strategy captures the entire Internet value chain, serving all customers and market segments. Netia's IP services encompass IP dial-up and broadband access and business networking (based on IPVPNs), as well as a range of hosting products including co-location data centers and application hosting, enabling significant traffic aggregation and facilitation of E-business. In the near future, Netia customers will be offered high-bandwidth xDSL and LMDS access, WAP support and unlimited flat rate access.

Meir Srebernik, President and CEO of Netia commented, "Netia's Internet strategy captures all IP-enabled services and products facilitated around our own state-of-the-art fiber-optic IP focused network. This network will allow Netia to offer unparalleled quality of service required for the Internet, and meet the rapidly growing demand for IP capacity in Poland. Our local broadband ready access reach enables us to deliver this quality and capacity and broad range of IP services directly to the customer's doorstep."

NETIA HOLDINGS is the largest alternative fixed-line telecommunications operator in Poland. In March 2000 Netia won the tender for the Warsaw voice telephony license. Including Warsaw, Netia has 24 licenses for local telecommunications services in territories covering some 15 million people or approximately 40% of the Polish population. The Company's existing local telephone license territories cover five of the country's ten largest urban areas including Krakow, Poznan, Gdansk, Lublin, Katowice and several territories surrounding the city of Warsaw. Netia has also secured the benefit of a nationwide data and IP license to provide data transmission and Internet-based services. In February 2000, the Netia 1 consortium was awarded a nationwide domestic long distance voice license.