October 9, 2000

Contact:
Dana Tindall, GCI, (907) 265-5611, dtindall@gci.com
Bonnie Bernholz, Bernholz & Graham, (907) 561-4488, bbernholz@aol.com

FOR IMMEDIATE RELEASE

GCI GETS NOD TO PROVIDE LOCAL SERVICES TO FAIRBANKS AND JUNEAU

ANCHORAGE, AK - - General Communication, Inc. (GCI) has received final approval from the Regulatory Commission of Alaska (RCA) to provide competitive local telephone service in the Fairbanks and Juneau market.

On October 5, 2000, the RCA approved an Interconnection Agreement between Alaska Communications Systems (ACS) and GCI, removing the last obstacle to competition.

According to Dana Tindall, GCI senior vice president of legal and regulatory affairs, this is a major milestone for competitive services in the state.

"After trying to provide competitive local telephone services in these communities for three years, this is, without question, a landmark decision," Tindall said. "In addition to thanking the Commission, GCI also is grateful to the support during these three years from the City and Borough of Juneau and the City Council and Borough Assembly of Fairbanks."

Tindall indicated that the core switches necessary to offer local telephone services would be installed in Fairbanks and Juneau in early 2001. It is anticipated that customer service will begin in mid to later 2001.

The announcement by the RCA comes within three days of GCI's three-year anniversary of providing local telephone service in Anchorage. GCI Vice President and General Manager of Local Services Gene Strid indicated that as of GCI's anniversary date of October 8, 1997, the company has a 30 percent marketshare.

"Since entering the market, the price for the most commonly purchased residential local services package has dropped 30 percent," Strid said. "We estimate that our customers have saved more than $7.5 million in local services charges. Additionally, GCI estimates that the market as a whole - regardless of the provider - has saved more than $18 million as a result of competition."

Earlier this week, ACS filed lawsuits in state and federal courts to delay competition in Fairbanks and Junueau based on its belief that GCI was seeking an unreasonably cheap entry at an unfair price. In RCA's Order approving the Interconnection Agreement issued on October 5th, RCA found no factual basis in the arbitration record to support ACS' claim that the rates set by the interconnection agreement are unfair.

"Therefore, there is no reason to delay adoption of the interconnection agreement. It would be unfair to the other party involved in this arbitration, and inconsistent with the terms of the Act (Telecommunications Act of 1996) to delay adoption of the interconnection agreement and allow ACS another opportunity to make its case because it is dissatisfied with the outcome of the proceeding."

The RCA also rejected a last minute bid by ACS to set interconnection rates at a higher level and make them interim and refundable.

GCI (Nasdaq:GNCMA) is an Alaska-based integrated communications provider delivering voice, video and data services through its fiber optic, satellite, hybrid fiber coax and metropolitan area network facilities. More information about GCI can be found at www.gci.com.