NETIA: new CEO appointed

Netia has announced the appointment of Miros3aw Godlewski as President of the Management Board and CEO effective Feb 15, 2007. Mr Godlewski replaces Pawe3 Kar3owski, who stepped-in as acting CEO following the departure of Wojciek Madalski late last year. Mr. Miros3aw Goldewski has served as President of the Management Board in Opoczno SA from January 2006. From 2003 to 2005 he was President and CEO in Dec Sp. z o. (a subsidiary of GATX), and was General Manager of Pepsi-Cola Poland Sp. z o.o. as General Manager from 1999 to 2003.

Our view: We believe the market will receive the news positively as it removes management uncertainties at Netia. Mr. Goldewski also brings with him solid management credentials, and a sales background, which we believe will be critical in Netia's future strategy. We reiterate our Sell recommendation given deteriorating business fundamentals, lack of visibility on the mobile roll-out, and challenging valuations.