Creditors Accept Arrangement Proceeding Plan for Netia Holdings S.A.

Business Editors/ High Tech Writers

Netia Holdings S.A. (Nasdaq: NTIAQ, WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced that the majority of creditors of Netia Holdings S.A., representing over 95% of total value of claims, voted on June 28, 2002 in favor of the arrangement plan submitted to the court in Warsaw. The arrangement plan for Netia Holdings S.A. is currently awaiting the required approval by the court; the hearing regarding this approval was scheduled for July 2, 2002.

As previously announced, filings for the opening of arrangement proceedings and approval of the arrangement plans were made by Netia Holdings S.A. and two of its subsidiaries, Netia Telekom S.A. and Netia South Sp. z o.o., all in connection with Netia's debt restructuring pursuant to the Restructuring Agreement signed on March 5, 2002. On June 25, 2002 the court approved the arrangement plan for Netia Telekom as voted on by its creditors on June 24, 2002. A deadline for verifying claims of creditors of Netia South, the last Netia group company under the Polish arrangement proceeding, was set for July 16, 2002. The date for voting of creditors of Netia South has not yet been set.

Detailed conditions of the arrangement plan for Netia Holdings S.A. accepted today are as follows:

1. 91.3 % of the debts subject to the arrangement plan will be

written off;

2. Creditors will be repaid in annual installments;

3. Installment obligations will be denominated in Polish zloty, will

be zero coupon and shall be payable on the last day of each

consecutive calendar year during the period when the arrangement

plan is in force:

a) The first installment payable on December 31, 2007 shall be equal

to 8.5% of the reduced claims subject to the arrangement;

b) The second installment payable on December 31, 2008 shall be equal

to 8.5% of the reduced claims subject to the arrangement plan;

c) The third installment payable on December 31, 2009 shall be equal

to 17% of the reduced claims subject to the arrangement plan;

d) The fourth installment payable on December 31, 2010 shall be equal

to 17% of the reduced claims subject to the arrangement plan;

e) The fifth installment payable on December 31, 2011 shall be equal

to 24.5% of the reduced claims subject to the arrangement plan;

and

f) The sixth installment payable on December 31, 2012 shall be equal

to 24.5% of the reduced claims subject to the arrangement plan.

4. The obligations under the arrangement plan will not be secured by

any form of security interest.

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 the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F filed with the Commission on March 28, 2002, its Current Report on Form 6-K filed with the Commission on April 3, 2002, it Current Reports on Forms 6-K filed with the Commission on May 6, 2002, its Current Report on Form 6-K filed with the Commission on May 7, 2002, its Current Report on Form 6-K filed with the Commission on May 20, 2002, and its Current Report on Form 6-K filed with the Commission on May 24, 2002. The Company undertakes no obligation to publicly update or revise any forward-looking statements.