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 localtelephone services in Poland, today announced that it has signeda memorandum of understanding with BRE Bank S.A. ("BRE Bank"), oninvestments by BRE Bank in Netia Network S.A. ("Netia Network"). Netia Network, a joint-stock company currently owned 49% byNetia and 51% by other shareholders, recently received a nationaldata transmission services license and intends to participate inthe upcoming tender for a domestic long-distance telephonylicense, anticipated this summer. Under the terms of the proposedtransaction, Netia Network will be owned 49% by Netia and 51% byother Polish entities, including BRE Bank. The proposed transaction will commit Netia and BRE Bank toprovide Netia Network with an agreed amount of capital sufficientto design, build and commence the commercial operation of anational data transmission network, and a national long-distancenetwork if such a license is obtained by Netia Network. Allcapital commitments shall be pro rata to share ownership. Today's announcement extends BRE Bank's partnership with Netiainitiated last week with BRE Bank's agreement to purchase aninterest in Netia and to appoint a BRE Bank representative to theNetia Supervisory Board. Said Meir Srebernik, President and CEOof Netia: "BRE Bank provides Netia with a strong partner from thePolish business community, committed to supporting the company'slong-term strategy. Our cooperation is off to a flying start andwill strengthen Netia's ability to pursue opportunities innational data transmission and domestic long-distance in Poland." NETIA currently holds 23 licenses to build and operatetelecommunications networks that cover approximately 13.4 millionpeople, representing over 33% of the Polish population andincluding 5 out of Poland's 10 largest cities. In April 1999Netia Network received a nationwide license for provision of datatransmission services. This will enable Netia to provide a highstandard of data transmission services throughout Poland. BRE BANK S.A. is a universal Polish bank with a leadingposition in corporate and investment banking as well as inprivate banking. At the end of 1998, BRE Bank's own funds reachedPLZ 1,230.4 million (USD 312.3 million) and total assets amountedto PLZ 1,044.8 million (USD 2,803.2). 48.74% of BRE Bank's sharesare 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 forsale in the United States. Securities proposed to be sold byNetia may not be offered or sold in the United States unless theyare registered or exempt from registration. The public offeringof securities to be made in the United States will be made bymeans of a prospectus that may be obtained from Netia HoldingsS.A. and that will contain detailed information about the companyand management as well as financial statements. ots OriginalText Service: Netia Holdings S.A Internet:http://www.newsaktuell.de Contact: Meir Srebernik, or ReuvenSharon, or Jolanta Ciesielska, all of Netia, +48-22-648-4500; orInvestors, Jeff Zelkowitz, or Nicky Toresen, or Media, MelanieMorrison, all of Taylor Rafferty Associates, +44-171-606-1149,for Netia

Subscribers please note that material bearing the slug"PROTEXT" is not part of CTK's news service and is not to bepublished under the "CTK" slug. Protext is a commercial serviceproviding distribution of press releases from clients, who areidentified in the text of Protext reports and who bear fullresponsibility for their contents.

PROTEXT