Netia reconsiders IPTV deal with TVN Group

Monday, February 22nd, 2010

WARSAW, Poland — Netia SA (“Netia” or the “Company”) (WSE: NET), Poland’s largest alternative provider of fixed-line telecommunications services, today announced its audited consolidated financial results for the year and unaudited results for the quarter ended December 31, 2009.

Mirosław Godlewski, Netia’s President and CEO, commented: “With cash available and the group generating free cash flow, we continue to monitor opportunities for a major acquisition in 2010 whilst operationally we will be focused on subscriber growth, the introduction of TV services and delivering the best quality customer service in the market.”

Progress on IPTV

Following delays in reaching a commercial agreement to distribute ‘n’s DTH offering over IPTV to Netia’s broadband customers, both Netia and the TVN Group have decided to reconsider their positions in relation to the non-binding letter of intent signed in 2008.

Netia sees providing high quality TV services as part of a multi-play offering as an important element of value creation from its rapidly increasing subscriber base. To this end, Netia is reviewing various alternatives to profitably deliver quality services in 2010. Recommencing work on a commercial arrangement with “n” is among these alternatives.

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