January 26, 2001

Contact:
David Morris, (907) 265-5396 or dmorris@gci.com

FOR IMMEDIATE RELEASE

GCI RESPONDS TO FCC ORDER REQUIRING PAYMENT BY ACS TO GCI

$3.2 Million Damage Award Resolves 1997-1998 Overearnings Complaint

ANCHORAGE, AK - - General Communication, Inc. (GCI) today issued the following statements regarding the January 24, 2001 order by the Federal Communications Commission requiring Alaska Communication Systems (ACS) to pay GCI $2.7 million plus interest.

"The FCC has agreed with GCI that ACS improperly assigned the costs of carrying Internet Service Provider traffic during 1997 and 1998," said Dana Tindall, GCI senior vice president of legal and regulatory affairs. "Mis-assigning its costs allowed ACS' predecessor, Anchorage Telephone Utility, to overearn 200 percent on revenues generated for accessing its local telephone network in Anchorage."

The FCC's action results from a complaint GCI filed on August 24, 2000. The complaint claimed, and the FCC order affirmed, that ACS' predecessor, the Anchorage Telephone Utility (ATU), "improperly assigned its ISP traffic costs…enabl[ing] it to reflect an apparently lawful rate of return." By mis-assigning the amount of GCI traffic carried by ATU in the calculation, ATU charged GCI higher rates than it was entitled to charge.

In 1999, ATU was acquired by ACS. ACS continued the mis-assignment of costs after it acquired ATU. According to Tindall, the FCC order requires ACS to alter its practices cited in the complaint to comply with federal guidelines. GCI will be reviewing the 1999 through 2000 Monitoring Report filed by ACS for similar overearnings.

John Lowber, GCI chief financial officer, adds that the FCC ordered ACS to pay damages to GCI in the amount of $2,765,371 plus prejudgment interest computed from January 1, 1999.

"We calculate damages plus interest to equal $3.2 million for the 1997-1998 timeframe," said Lowber. "We will be analyzing what further amounts are due for the 1999 through 2000 timeframe."

Payment in full is due within 90 days of the release of the Order, however, GCI will not recognize the benefit of the award until payment is received.

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