Notes to GCI News Release: GCI Signs Asset Purchase Agreement with GC Cablevision, Inc. of Fairbanks (October 17, 2000)

What is being announced today?
GCI has signed an asset purchase agreement with GC Cablevision of Fairbanks. GC Cablevision provides service in Fairbanks and North Pole. It has approximately 900 subscribers and passes more than 2,000 homes.

How much is the transaction?
GCI will pay approximately $2.3 million of GCI Class "A" common stock and cash. Terms call for $2 million in stock valued at $10 per share and $300,000 in cash. There is a one-year holdback of $200,000 in stock to meet any undisclosed liabilities.

How does this compare to previous cable transactions?
Very favorable. In 1996, GCI acquired cable systems throughout the state for approximately $281 million or $2,800 per sub. In the lower 48, recent purchases have been valued as high as $4,500 per sub. This transaction is valued at $2,555 per sub.

Why did GCI purchase the properties?
The acquisition helps position GCI as the premier integrated communication provider in the state. The broadband capabilities of the cable TV plant create a platform for GCI to roll-out local telephone, interactive and high-speed Internet services.

What can GC Cablevision customers expect in the future?
A lot more options. After receiving regulatory approval, GCI will begin the process of interconnecting the two networks and making the plant "two-way." As that happens, GC Cablevision customers will have access to GCI's analog, digital and cable modem services.

When did discussions begin regarding the sale, and who initiated it?
GCI initiated discussions in spring of this year.