Dismissal of Lawsuit Against Netia.

Business Editors

WARSAW, Poland--(BUSINESS WIRE)--Dec. 17, 2003

Netia S.A. ("Netia") (WSE:NET), Poland's largest alternative provider of fixed-line telecommunications services, today announced that on December 16, 2003, the Regional Court in Warsaw, XVI Commercial Department resolved the case instituted by a lawsuit filed by Millennium Communications S.A. ("Millennium") against Netia, to ban Netia from unfair competition practices and for damages of PLN 50,000,000.

The Regional Court dismissed in full all demands included in Millennium's lawsuit and adjudicated that Netia be reimbursed for the costs of the proceeding of PLN 18,000. In the oral justification of the award, the Court pointed out that Millennium failed to support its claims with any reliable evidence. Given the fact that Millennium's claim was completely groundless, the Regional Court imposed on Millennium the maximum costs of the proceedings permitted under the provisions of procedural law.

This award, although not yet final, is yet another verdict issued to Millennium's disadvantage during a long-lasting dispute between the parties. In February 2003, the Regional Court in Warsaw adjudicated that Millennium must pay Netia PLN 11,500,000 plus contractual interest as a repayment of a loan granted in 2000. In the same case in May 2003, the Court secured the enforcement of the above verdict by attaching all of the shares owned by Millennium in Genesis Sp. z o.o. Millennium is the minor shareholder which filed a claim to the Regional Court in Warsaw requesting the invalidation of a resolution on Netia's merger with certain of its wholly owned subsidiaries adopted by the Extraordinary General Meeting of Shareholders held on October 30, 2003 (see release of November 25, 2003).

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 June 27, 2003, its Current Report on Form 6-K filed with the Commission on June 30, 2003, its Current Report on Form 6-K filed with the Commission on August 8, 2003, its Current Report dated August 13, 2003, its Current Report dated September 23, 2003, its Current Report dated October 1, 2003, its Current Report dated November 4, 2003 and its Current Report dated November 6, 2003. Netia undertakes no obligation to publicly update or revise any forward-looking statements.