About GCI
  Company Overview
  News Releases
  Executive Team
  Affiliated Sites
  GCI Ads
  Services by Area
  Public Service Announcements
  Community
   
Tariffs
   
Taxes and Surcharges
 

Sign up for GCI qualifying products and get Alaska Airlines Miles!

 

 

June 17, 2003

John Lowber, (907) 868-5628; jlowber@gci.com
Bruce Broquet, (907) 868-6660; bbroquet@gci.com
David Morris, (907) 265-5396; dmorris@gci.com

FOR IMMEDIATE RELEASE

GCI ANNOUNCES PROPOSED SETTLEMENT OF WORLDCOM PRE-PETITION LIABILITY

ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today announced that it has reached an agreement with MCI WorldCom Network Services (MWNS) that affirms contractual terms and conditions between the two companies; settles MWNS' pre-petition liabilities; settles billing disputes between the two companies; and, establishes a right to setoff GCI pre-petition payables. The companies expect final approval of the agreement by the bankruptcy court within 60 days.

"We are pleased with the terms of the proposed settlement which affirms our long standing business relationship with WorldCom," said Ron Duncan, GCI president. "We look forward to WorldCom's emergence from Chapter 11 proceedings and participating with them in their future growth opportunities."

Under terms of the agreement, MWNS will settle its outstanding liability of $12.9 million for $12.1 million net of adjustments. In addition, the parties agreed to reduce GCI's pre-petition claim to $12.1 million and further allow GCI the right to setoff approximately $1 million in prepetition payables owed by GCI to MWNS. MWNS has agreed to pay the remaining $11 million to GCI as a credit against GCI's future purchase of services from MWNS. Further, GCI agreed to pay MWNS the outstanding pre-petition payables balance of approximately $650,000 no later than 30 days after the settlement is approved.

MWNS is a subsidiary of WorldCom, which had previously entered into service agreements with GCI on behalf of WorldCom.

The foregoing contains forward-looking statements regarding the company's expected results that are based on management's expectations as well as on a number of assumptions concerning future events. Actual results might differ materially from those projected in the forward looking statements due to uncertainties and other factors, many of which are outside GCI's control. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained in GCI's cautionary statements sections of Form 10K and 10-Q filed with the Securities and Exchange Commission.

Based on revenues, GCI is the largest Alaska-based and operated integrated telecommunications provider and provides local, wireless, and long distance telephone, cable television, Internet and data communication services throughout Alaska. More information about the company can be found at www.gci.com.


Home | About GCI | For Home | For Business | Customer Care | View/Pay eBill | Careers@GCI | Investors | GCI Yellow Pages | Contact Us

Copyright © GCI 2007 All Rights Reserved