Another First in Poland: Netia to Launch Free Dial-up Internet Access Service Package.

Business Editors

WARSAW, Poland--(BUSINESS WIRE)--March 29, 2000

Netia Holdings SA (Nasdaq: NTIA), Poland's largest alternative fixed-line telephone operator, today announced the launching of dial-up Internet access services in April 2000.

This new, Internet service package will be launched by Internetia, Netia's 100% owned subsidiary, and includes the following services which will be provided free of charge:

- Registration and subscription.

- Three e-mail addresses provisioned on a POP3 mailbox.

- 15MB of e-mail space.

- Initial five hours of phone connection and discounted local

call rates.

- Personal Web page.

- CD-ROM to facilitate the above, containing a full package of

Microsoft (R) Internet applications.

Internetia clients will pay local call charges only.

Meir Srebernik, President and CEO of Netia, commented, "The Internet revolution is rapidly taking hold in Poland as elsewhere, and Internetia's unique and user-friendly business concept is a dramatic first for Poland. We come to market with the largest range of bundled Internet services in one package, making it easy for businesses and residential customers to access and utilize the Internet. We are simultaneously launching an Internetia portal which, we, in co-operation with other content partners, intend to build into an ideal platform for the rapidly developing e-commerce market in Poland."

"Thanks to our IP investments program and the acquisition of Topnet, Internetia is strongly positioned to be one of Poland's leading Internet service and content providers. This will fuel Netia's growth as Poland's best provider of telecommunications solutions, enabling us to bundle high quality Netia branded Internet services alongside local and long-distance voice and data services."

During the initial roll-out the service will be offered to Netia's voice telephony subscribers to include their feedback prior to offering it in other markets. New Internetia customers will be able to sign up beginning in May 2000. Internetia will launch its service with seven Internet access points in Warsaw, Torun, Gdansk, Krakow, Poznan, Lublin and Katowice, and coverage will expand in the near future.

In addition to a free Internet access service package, Internetia will offer its customers the initial five hours of online time free of telephone line charges, as well as a 20% discount on all calls made to the Internetia service during off-peak hours, which in itself is a 60% discount off the peak rate.

As an alternative to CD-ROM, users will be able to download access software and register their e-mail accounts manually by accessing the www.internetia.pl website.

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.