Information on sale of Netia's shares

WARSAW, Poland - January 2, 2011 - Netia SA ("Netia") (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, announced that it received a notification filed on behalf of Third Avenue International Fund (the "Fund"), one of the entities whose assets are managed by Third Avenue Management LLC, that ownership of Netia's shares, held by the Fund has decreased below 10% of the total number of votes at Netia's General Meeting of Shareholders.

According to the notification, as a result of sale transactions effected on the Warsaw Stock Exchange on December 21, 2011, which were settled on December 27, 2011, as of the latter date the Fund holds 39,044,843 Netia shares, representing 9.97% of Netia's share capital and entitling the holder thereof to exercise 39,044,843 votes, which represents 9.97% of the total number of votes at Netia's General Meeting of Shareholders.

Prior to the above change, the Fund held 44,087,832 Netia shares, which represented 11.26% of Netia's share capital and was entitled to 44,087,832 votes, representing 11.26% of the total number of votes at Netia's General Shareholder Meeting.

In addition, Netia informs that the last notification by Third Avenue Management LLC, which referred to holdings of Netia shares by clients of Third Avenue Management LLC, including the Fund, was filed on December 16, 2011 (see current report No. 77/2011). In accordance with the above notification, as of December 14, 2011 the clients of Third Avenue Management LLC, including the Fund, held 69,988,577 Netia shares, representing 17.87% of Netia's share capital and entitling the holder thereof to exercise 69,988,577 of votes, which represented 17.87% of the total number of votes at Netia's General Shareholders Meeting.