Date Set for Hearing Approving the Netia South Arrangement Plan.

Business Editors

WARSAW, Poland--(BUSINESS WIRE)--Nov. 20, 2002

Netia Holdings S.A. ("Netia") (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services (in terms of value of generated revenues), today announced that the court hearing to approve the arrangement plans for Netia South Sp. z o.o. ("Netia South"), a wholly owned subsidiary of Netia, in the Polish arrangement proceedings will be held on December 4, 2002. The arrangement plan for Netia South was unanimously adopted by its creditors entitled to vote at the creditors' meeting on August 29, 2002.

The ratification hearing with respect to Netia South's arrangement plan in Poland is the final stage of the arrangement and composition proceedings, in connection with Netia's ongoing restructuring. On November 6, 2002, the Dutch court ratified the composition plans of Netia Holdings B.V., Netia Holdings II B.V. and Netia Holdings III B.V., Netia's three Dutch finance subsidiaries. The Dutch court's decisions became unappealable on November 15, 2002. The arrangement plans for Netia and Netia Telekom S.A., a wholly owned subsidiary of Netia, were approved on August 9, 2002 and June 25, 2002, respectively. Once all Polish and Dutch court decisions approving the arrangement plans and composition plans become final and unappealable, Netia will be able to complete the restructuring in accordance with the Restructuring Agreement, dated March 5, 2002.

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 March 28, 2002, its Current Report on Form 6-K filed with the Commission on April 3, 2002, its 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, its Current Report on Form 6-K filed with the Commission on May 24, 2002, its Current Report on Form 6-K filed with the Commission on June 28, 2002, its Current Report on Form 6-K filed with the Commission on July 2, 2002, its Current Report on Form 6-K filed with the Commission on July 31, 2002, and its Current Report on Form 6-K filed with the Commission on August 2, 2002, its Current Reports on Form 6-K filed with the Commission on August 6, 2002, its Current Report on Form 6-K filed with the Commission on August 9, 2002, its Current Report on Form 6-K filed with the Commission on August 15, 2002 its Current Report on Form 6-K filed with the Commission on August 16, 2002, its Current Report on Form 6-K filed with the Commission on August 28, 2002, its Current Report on Form 6-K filed with the Commission on August 30, 2002, its Current Report on Form 6-K filed with the Commission on September 16, 2002, its Current Report on Form 6-K filed with the Commission on September 20, 2002, its Current Report on Form 6-K filed with the Commission on September 24, 2002, its Current Report on Form 6-K filed with the Commission on October 1, 2002, its Current Report on Form 6-K filed with the Commission on October 15, 2002, its Current Report on Form 6-K filed with the Commission on October 17, 2002, its Current Report on Form 6-K filed with the Commission on October 22, 2002, its Current Report on Form 6-K filed with the Commission on October 25, 2002, its Current Report on Form 6-K filed with the Commission on November 5, 200, its Current Report on Form 6-K filed with the Commission on November 5, 2002 Current Report on Form 6-K filed with the Commission on November 6, 2002 and Current Report on Form 6-K filed with the Commission on November 18, 2002. Netia undertakes no obligation to publicly update or revise any forward-looking statements.