|
October 17, 2000
Contact: David Morris, (907) 265-5396 or dmorris@gci.com
FOR IMMEDIATE RELEASE
GCI SIGNS ASSET PURCHASE AGREEMENT WITH G.C. CABLEVISION, INC. OF FAIRBANKS
Addendum of Notes about the transanction
ANCHORAGE, AK - - General Communication, Inc. (GCI) announced today that it has signed an asset purchase agreement with G.C. Cablevision, Inc. of Fairbanks. Subject to receiving regulatory approvals, G.C. Cablevision will receive $2.3 million of cash and GCI Class "A" common stock valued at $10 per share.
"We see this as an excellent opportunity to expand our cable television and cable modem business in the Fairbanks market at the same time we will begin launching our local telephone service," said Riley Snell, general manager of GCI cable and entertainment.
"I am very pleased with the sale and believe this to be a very positive development for our customers that will give them access to the newest products and technologies that GCI offers. I anticipate a smooth transition," said Steve Gerstein, owner of G.C. Cablevision.
G.C. Cablevision currently has more than 900 subscribers in the Fairbanks and North Pole communities located within the Fairbanks North Star Borough. The system offers 48 channels including premium channels.
GCI anticipates closing the transaction by the second quarter of 2001. The transaction will be subject to approval from the Regulatory Commission of Alaska and the Federal Communications Commission.
According to Snell, GCI will interview existing G.C. Cablevision employees first for available positions created by the acquisition.
Once regulatory approval is received, GCI will start the work necessary to interconnect the two cable television plants. It is planned that service will be operated from a single head end and G.C. Cablevision customers will migrate to the GCI platform. This will give customers access to digital cable television and high-speed Internet service.
Currently, GCI has 118,000 cable television subscribers, including 12,000 digital subscribers and 13,000 cable modem customers. After close of this transaction, GCI will pass 79 percent of the state's households.
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.
|