Enterprise Investors completes the purchase of warrants in Netia

Enterprise Investors had an option to purchase the warrants based on its agreement with Telia-Sonera dated 28 May 28 2003 and decided to exercise the option. As a result of the transaction, PEF IV owns 9,012,520 Netia shares and 18,520,889 two- and three-year warrants. In accordance with the Polish securities law, PEF IV informed Netia and the Warsaw Stock Exchange that its total ownership position had increased to 6.7%.

Robert Manz, EI partner responsible for telecommunications investments, commented:

“We believe Netia’s warrants are an attractive security, as they give us the right to purchase Netia’s shares in the future at a fixed price of PLN 2.53. We decided to exercise our option to purchase additional warrants since the terms of our agreement were attractive. We are also encouraged by the six-month financial results released by Netia and the positive announcements regarding Netia’s license fees.”

Netia SA is the largest independent fixed-line telecommunications operator on the Polish market. Netia Holdings is a public company traded on the Warsaw Stock Exchange.

Enterprise Investors has been active since 1990. It manages funds provided by major private European and US investors representing a total of $725 million. Private equity funds managed by EI have invested over $650 million in 90 companies across all economic sectors in Poland as well as Central and Eastern Europe. A total of $65 million has been invested in the telecom sector.