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Netia Announces Investment by BRE Bank.

WARSAW, Poland--(BUSINESS WIRE)--July 2, 1999--

Netia Holdings, the largest alternative provider of fixed-line local telephone services in Poland, and BRE Bank S.A. today announced that BRE Bank S.A., a Polish bank with its headquarters in Warsaw, has signed an agreement pursuant to which BRE Bank has committed to acquire common shares of Netia for USD 10 million. Under the agreement, BRE Bank also has committed itself to subscribe for USD 10 million of shares of Netia in the forthcoming initial public offering of American Depositary Shares representing common shares of Netia in the United States.

In connection with its investment in Netia, BRE Bank would obtain the right to appoint a member of Netia's Supervisory Board.

Mr. Mieczyslaw Groszek, vice president of BRE Bank, has indicated BRE Bank's desire to further invest in Netia and to become a long-term financial investor in the company.

NETIA HOLDINGS is the largest alternative provider of fixed-line local telephone services in Poland. The Company currently holds 23 licenses to build and operate telecommunications networks that cover approximately 13.4 million people, representing over 33% of the Polish population and including 5 out of Poland's 10 largest cities. In April 1999 Netia received a nationwide license for provision of data transmission services. This will enable Netia to provide a high standard of data transmission services throughout Poland.

BRE BANK S.A. is a universal Polish bank with a leading position in corporate and investment banking as well as in private banking. At the end of 1998, BRE Bank's own funds reached PLZ 1,230.4 million (USD 312.3 million) and total assets amounted to PLZ 1,044.8 million (USD 2,803.2). 48.74% of BRE Bank's shares are held by Commerzbank AG which provides BRE Bank with the know-how and access to German and other international clients.

THIS RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. SECURITIES PROPOSED TO BE SOLD BY NETIA MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES UNLESS THEY ARE REGISTERED OR EXEMPT FROM REGISTRATION. THE PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM NETIA HOLDINGS S.A. AND THAT WILL CONTAIN DETAILED INFORMATION ABOUT THE COMPANY AND MANAGEMENT AS WELL AS FINANCIAL STATEMENTS.
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Publication:Business Wire
Geographic Code:4EUFR
Date:Jul 2, 1999
Words:394
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