September 19, 2002

John Lowber, (907) 265-5628 or jlowber@gci.com
Bruce Broquet, (907) 777-6660 or bbroquet@gci.com
bbroquet@gci.com, (907) 265-5396 or dmorris@gci.com

GCI UPDATES STATUS OF WORLDCOM CONTRACT

Receives $3.5 Million Payment Against Pre-petition Liability

ANCHORAGE, AK -- GCI (Nasdaq:GNCMA) announced today that it has received a $3.5 million payment against its pre-petition receivable from WorldCom. The payment was received from a third party obligor that determined it was ultimately liable for services provided by GCI to the third party under a contract that had been assigned to WorldCom.

The payment reduces the amount that WorldCom owes to GCI for services provided to WorldCom by GCI prior to WorldCom's filing of bankruptcy on July 21, 2002. During its second quarter conference call on August 8, 2002 GCI discussed its exposure to the WorldCom bankruptcy. GCI reported that it had reserved $9.7 million against its second quarter results to cover services that had been billed to WorldCom during the second quarter but for which payment had not been received prior to WorldCom's bankruptcy filing. GCI also estimated that it would reserve up to $6.7 million against its third quarter results to cover additional services billed to WorldCom in the third quarter prior to WorldCom's filing. GCI had previously reserved approximately $0.6 million of disputed billings.

The $3.5 million received today directly reduces the estimated third quarter charge. GCI now has a pre-petition receivable of $13.5 million from WorldCom of which $10.3 million has been reserved. GCI also owes WorldCom approximately $1 million that it believes it may be entitled to offset against the amounts due to GCI. Thus, the residual exposure to GCI that has not already been reserved has been reduced to $2.2 million. GCI is currently evaluating how much, if any, value should be assigned to the total $13.5 million receivable that it holds from WorldCom and will reserve any additional amounts against its third quarter results. At this time, the amount of the third quarter reserve increase is expected to be between zero and $2.2 million.

GCI also announced that it has received timely payment for all presently due invoices that have been rendered to WorldCom since its filing. GCI has received more than $4 million to date for post petition services provided through August 31, 2002.

Finally, GCI reported that WorldCom traffic levels are running consistently above the levels reported last year.

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. More information about the company can be found at www.gci.com.