Netia Holdings and BRE Bank to Extend Scope Of Polish

Telecommunications Partnership Warsaw, Poland (ots-PRNewswire) - Netia Holdings S.A. ("Netia"), the largest alternative provider of fixed-line local telephone services in Poland, today announced that it has signed a memorandum of understanding with BRE Bank S.A. ("BRE Bank"), on investments by BRE Bank in Netia Network S.A. ("Netia Network"). Netia Network, a joint-stock company currently owned 49% by Netia and 51% by other shareholders, recently received a national data transmission services license and intends to participate in the upcoming tender for a domestic long-distance telephony license, anticipated this summer. Under the terms of the proposed transaction, Netia Network will be owned 49% by Netia and 51% by other Polish entities, including BRE Bank. The proposed transaction will commit Netia and BRE Bank to provide Netia Network with an agreed amount of capital sufficient to design, build and commence the commercial operation of a national data transmission network, and a national long-distance network if such a license is obtained by Netia Network. All capital commitments shall be pro rata to share ownership. Today's announcement extends BRE Bank's partnership with Netia initiated last week with BRE Bank's agreement to purchase an interest in Netia and to appoint a BRE Bank representative to the Netia Supervisory Board. Said Meir Srebernik, President and CEO of Netia: "BRE Bank provides Netia with a strong partner from the Polish business community, committed to supporting the company's long-term strategy. Our cooperation is off to a flying start and will strengthen Netia's ability to pursue opportunities in national data transmission and domestic long-distance in Poland." NETIA 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 Network 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. ots Original Text Service: Netia Holdings S.A Internet: Contact: Meir Srebernik, or Reuven Sharon, or Jolanta Ciesielska, all of Netia, +48-22-648-4500; or Investors, Jeff Zelkowitz, or Nicky Toresen, or Media, Melanie Morrison, all of Taylor Rafferty Associates, +44-171-606-1149, for Netia


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