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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.
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