SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20649 SCHEDULE 13D Under the Securities Exchange Act of 1934 (Amendment No. 2) General Communication, Inc. --------------------------- (Name of Issuer) Class A Common Stock -------------------- (Title of Class of Securities) 369385 10 9 ----------- (CUSIP Number) William P. Glasgow Prime II Management, Inc. 3000 One American Center 600 Congress Avenue Austin, Texas 78701 (512) 476-7888 ------------------------ (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) December 5, 1997 and February 12, 1998 (Date of Event Which Requires Filing of this Report) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ]. Check the following box if a fee is being paid with this report [ ]. (A fee is not required only if the reporting person: (1) has a previous statement on file reporting beneficial ownership of more than five percent of the class of securities described in item 1; and (2) has filed no amendment subsequent thereto reporting beneficial ownership of less than five percent of such class. See Rule 13d-7.) Note: Six copies of this report, including all exhibits, should be filed with the Commission. See Rule 13d-1(a) for other parties to whom copies are to be sent. * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The Information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). Page 2 of 31 CUSIP No. 369385 10 9 1) Name of Reporting Person: S.S. or I.R.S. Identification No. of Above Person: PRIME CABLE GROWTH PARTNERS, L.P. 74-2454047 - -------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) [X] - -------------------------------------------------------------------------------- 3) SEC Use Only _____________________________________________ - -------------------------------------------------------------------------------- 4) Source of Funds NOT APPLICABLE (See Item 3) - -------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): __ NOT APPLICABLE - -------------------------------------------------------------------------------- 6) Citizenship or Place of Organization DELAWARE - -------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Power NONE Beneficially Owned (8) Shared Voting Power NONE by Each Reporting (9) Sole Dispositive Power NONE Person With (10) Shared Dispositive Power NONE - -------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person NONE - -------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares : [ ] - -------------------------------------------------------------------------------- 13) Percent of Class Requested by Amount in Row (11) NOT APPLICABLE - -------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) PN - -------------------------------------------------------------------------------- Page 3 of 31 CUSIP No. 369385 10 9 1) Name of Reporting Person: S.S. or I.R.S. Identification No. of Above Person: PRIME VENTURE I HOLDINGS, L.P. 74-2547375 - -------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) [X] - -------------------------------------------------------------------------------- 3) SEC Use Only _____________________________________________ - -------------------------------------------------------------------------------- 4) Source of Funds NOT APPLICABLE (See Item 3) - -------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): __ NOT APPLICABLE - -------------------------------------------------------------------------------- 6) Citizenship or Place of Organization DELAWARE - -------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Power NONE Beneficially Owned (8) Shared Voting Power NONE by Each Reporting (9) Sole Dispositive Power NONE Person With (10) Shared Dispositive Power NONE - -------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person NONE - -------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares : [ ] - -------------------------------------------------------------------------------- 13) Percent of Class Requested by Amount in Row (11) NOT APPLICABLE - -------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) PN - -------------------------------------------------------------------------------- Page 4 of 31 CUSIP No. 369385 10 9 1) Name of Reporting Person: S.S. or I.R.S. Identification No. of Above Person: PRIME II MANAGEMENT GROUP, INC. 74-2538778 - -------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) [X] - -------------------------------------------------------------------------------- 3) SEC Use Only _____________________________________________ - -------------------------------------------------------------------------------- 4) Source of Funds NOT APPLICABLE (See Item 3) - -------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): __ NOT APPLICABLE - -------------------------------------------------------------------------------- 6) Citizenship or Place of Organization TEXAS - -------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Power NONE Beneficially Owned (8) Shared Voting Power NONE by Each Reporting (9) Sole Dispositive Power NONE Person With (10) Shared Dispositive Power NONE - -------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person NONE - -------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares : [ ] - -------------------------------------------------------------------------------- 13) Percent of Class Requested by Amount in Row (11) NOT APPLICABLE - -------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) CO - -------------------------------------------------------------------------------- Page 5 of 31 CUSIP No. 369385 10 9 1) Name of Reporting Person: S.S. or I.R.S. Identification No. of Above Person: PRIME VENTURE I, INC. 74-2382188 - -------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) [X] - -------------------------------------------------------------------------------- 3) SEC Use Only _____________________________________________ - -------------------------------------------------------------------------------- 4) Source of Funds NOT APPLICABLE (See Item 3) - -------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): __ NOT APPLICABLE - -------------------------------------------------------------------------------- 6) Citizenship or Place of Organization DELAWARE - -------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Power NONE Beneficially Owned (8) Shared Voting Power NONE by Each Reporting (9) Sole Dispositive Power NONE Person With (10) Shared Dispositive Power 293,702 - -------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 293,702 - -------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares : [ ] - -------------------------------------------------------------------------------- 13) Percent of Class Requested by Amount in Row (11) Less than 1% - -------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) CO - -------------------------------------------------------------------------------- Page 6 of 31 CUSIP No. 369385 10 9 1) Name of Reporting Person: S.S. or I.R.S. Identification No. of Above Person: PRIME CABLE LIMITED PARTNERSHIP 74-2435712 - -------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) [X] - -------------------------------------------------------------------------------- 3) SEC Use Only _____________________________________________ - -------------------------------------------------------------------------------- 4) Source of Funds NOT APPLICABLE (See Item 3) - -------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): __ NOT APPLICABLE - -------------------------------------------------------------------------------- 6) Citizenship or Place of Organization DELAWARE - -------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Power NONE Beneficially Owned (8) Shared Voting Power NONE by Each Reporting (9) Sole Dispositive Power NONE Person With (10) Shared Dispositive Power NONE - -------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person NONE - -------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares : [ ] - -------------------------------------------------------------------------------- 13) Percent of Class Requested by Amount in Row (11) NOT APPLICABLE - -------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) PN - -------------------------------------------------------------------------------- Page 7 of 31 CUSIP No. 369385 10 9 1) Name of Reporting Person: S.S. or I.R.S. Identification No. of Above Person: PRIME CABLE GP, INC. 74-2518134 - -------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) [X] - -------------------------------------------------------------------------------- 3) SEC Use Only _____________________________________________ - -------------------------------------------------------------------------------- 4) Source of Funds NOT APPLICABLE (See Item 3) - -------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): __ NOT APPLICABLE - -------------------------------------------------------------------------------- 6) Citizenship or Place of Organization DELAWARE - -------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Power NONE Beneficially Owned (8) Shared Voting Power NONE by Each Reporting (9) Sole Dispositive Power NONE Person With (10) Shared Dispositive Power NONE - -------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person NONE - -------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares : [ ] - -------------------------------------------------------------------------------- 13) Percent of Class Requested by Amount in Row (11) NOT APPLICABLE - -------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) CO - -------------------------------------------------------------------------------- Page 8 of 31 CUSIP No. 369385 10 9 1) Name of Reporting Person: S.S. or I.R.S. Identification No. of Above Person: PRIME VENTURE II, L.P. 74-2536635 - -------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) [X] - -------------------------------------------------------------------------------- 3) SEC Use Only _____________________________________________ - -------------------------------------------------------------------------------- 4) Source of Funds NOT APPLICABLE (See Item 3) - -------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): __ NOT APPLICABLE - -------------------------------------------------------------------------------- 6) Citizenship or Place of Organization DELAWARE - -------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Power NONE Beneficially Owned (8) Shared Voting Power NONE by Each Reporting (9) Sole Dispositive Power NONE Person With (10) Shared Dispositive Power NONE - -------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person NONE - -------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares : [ ] - -------------------------------------------------------------------------------- 13) Percent of Class Requested by Amount in Row (11) NOT APPLICABLE - -------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) PN - -------------------------------------------------------------------------------- Page 9 of 31 CUSIP No. 369385 10 9 1) Name of Reporting Person PRIME INVESTORS, L.P. 74-2536634 S.S. or I.R.S. Identification No. of Above Person - -------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) [X] - -------------------------------------------------------------------------------- 3) SEC Use Only _____________________________________________ - -------------------------------------------------------------------------------- 4) Source of Funds NOT APPLICABLE (See Item 3) - -------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): __ NOT APPLICABLE - -------------------------------------------------------------------------------- 6) Citizenship or Place of Organization DELAWARE - -------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Power NONE Beneficially Owned (8) Shared Voting Power NONE by Each Reporting (9) Sole Dispositive Power NONE Person With (10) Shared Dispositive Power NONE - -------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person NONE - -------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares: [ ] - -------------------------------------------------------------------------------- 13) Percent of Class Requested by Amount in Row (11) NOT APPLICABLE - -------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) PN - -------------------------------------------------------------------------------- Page 10 of 31 CUSIP No. 369385 10 9 1) Name of Reporting Person PRIME II MANAGEMENT, L.P. S.S. or I.R.S. Identification No. of Above Person 74-2609500 - -------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) [X] - -------------------------------------------------------------------------------- 3) SEC Use Only _____________________________________________ - -------------------------------------------------------------------------------- 4) Source of Funds NOT APPLICABLE (See Item 3) - -------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): __ NOT APPLICABLE - -------------------------------------------------------------------------------- 6) Citizenship or Place of Organization DELAWARE - -------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Power NONE Beneficially Owned (8) Shared Voting Power 171,783 by Each Reporting (9) Sole Dispositive Power NONE Person With (10) Shared Dispositive Power 171,783 - -------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 171,783 - -------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares: [ ] - -------------------------------------------------------------------------------- 13) Percent of Class Requested by Amount in Row (11) Less than 1% - -------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) PN - -------------------------------------------------------------------------------- Page 11 of 31 CUSIP No. 369385 10 9 1) Name of Reporting Person PRIME II MANAGEMENT, INC. S.S. or I.R.S. Identification No. of Above Person 74-2351797 - -------------------------------------------------------------------------------- 2) Check the Appropriate Box if a Member of a Group (See Instructions) (a) (b) [X] - -------------------------------------------------------------------------------- 3) SEC Use Only _____________________________________________ - -------------------------------------------------------------------------------- 4) Source of Funds NOT APPLICABLE (See Item 3) - -------------------------------------------------------------------------------- 5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e): __ NOT APPLICABLE - -------------------------------------------------------------------------------- 6) Citizenship or Place of Organization DELAWARE - -------------------------------------------------------------------------------- Number of Shares (7) Sole Voting Power NONE Beneficially Owned (8) Shared Voting Power 171,783 by Each Reporting (9) Sole Dispositive Power NONE Person With (10) Shared Dispositive Power 171,783 - -------------------------------------------------------------------------------- 11) Aggregate Amount Beneficially Owned by Each Reporting Person 171,783 - -------------------------------------------------------------------------------- 12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares : [ ] - -------------------------------------------------------------------------------- 13) Percent of Class Requested by Amount in Row (11) Less than 1% - -------------------------------------------------------------------------------- 14) Type of Reporting Person (See Instructions) CO - -------------------------------------------------------------------------------- Page 12 of 31 ITEM 1. SECURITY AND ISSUER This Statement on Schedule 13D relates to the Class A Common Stock, no par value (the "Class A Common Stock") of General Communication, Inc. (the "Company"), which, to the best knowledge of the reporting persons jointly filing this Statement, has its principal executive office at 2550 Denali Street, Suite 1000, Anchorage, Alaska 99503. ITEM 2. IDENTITY AND BACKGROUND The reporting persons jointly filing this Statement containing the information required by Schedule 13D with respect to the Class A Common Stock are Prime Cable Growth Partners, L.P., Prime Venture I Holdings, L.P., Prime II Management Group, Inc., Prime Venture I, Inc., Prime Cable Limited Partnership, Prime Cable GP, Inc., Prime Venture II, L.P., Prime Investors, L.P., Prime II Management, L.P., and Prime II Management, Inc. (collectively, the "Prime Holders" and, individually, a "Prime Holder"). Prime Cable Growth Partners, L.P. is a Delaware limited partnership ("Prime Growth") of which Prime Venture I Holdings, L.P. and Prime Venture I, Inc. are the general partners. The principal office and principal business address of Prime Growth is 3000 One American Center, 600 Congress Avenue, Austin, Texas 78701. The principal business of Prime Growth is to invest directly and indirectly in cable television systems. Prime Venture I Holdings, L.P. is a Delaware limited partnership ("Prime Holdings"), of which Prime II Management Group, Inc. and Prime Venture I, Inc. are the general partners. The principal office and principal business address of Prime Holdings is 3000 One American Center, 600 Congress Avenue, Austin, Texas 78701. The principal business of Prime Holdings is to invest directly and indirectly in cable television systems. Prime II Management Group, Inc. is a Texas corporation ("PIIMG"). The principal office and principal business address of PIIMG is 3000 One American Center, 600 Congress Avenue, Austin, Texas 78701. The principal business of PIIMG is to act as general partner of Prime Holdings. PIIMG is controlled by its board of directors. Prime Venture I, Inc. is a Delaware corporation ("PVI"). The principal office and principal business address of PVI is 3000 One American Center, 600 Congress Avenue, Austin, Texas 78701. The principal business of PVI is to invest directly and indirectly in cable television systems. PVI is controlled by its board of directors. Prime Cable Limited Partnership is a Delaware limited partnership ("PCLP"), of which Prime Cable GP, Inc. is the general partner. The principal office and principal business address of PCLP is 3000 One American Center, 600 Congress Avenue, Austin, Texas 78701. PCLP is currently in the process of liquidating its assets and intends to dissolve. Page 13 of 31 Prime Cable GP, Inc. is a Delaware corporation ("PCGP"). The principal office and principal business address of PCGP is 3000 One American Center, 600 Congress Avenue, Austin, Texas 78701. The principal business of PCGP is to act as general partner of PCLP. PCGP is controlled by its board of directors. Prime Venture II, L.P. is a Delaware limited partnership ("PVII"), of which Prime Investors, L.P. is the general partner. The principal office and principal business address of PVII is 3000 One American Center, 600 Congress Avenue, Austin, Texas 78701. The principal business of PVII is to invest directly and indirectly in cable television systems. Prime Investors, L.P. is a Delaware limited partnership ("Prime Investors"), of which Prime II Management, L.P. is the general partner. The principal office and principal business address of Prime Investors is 3000 One American Center, 600 Congress Avenue, Austin, Texas 78701. The principal business of Prime Investors is to act as general partner of PVII. Prime II Management, L.P. is a Delaware limited partnership ("PIIM"), of which Prime II Management, Inc. is the general partner. The principal office and principal business address of PIIM is 3000 One American Center, 600 Congress Avenue, Austin, Texas 78701. The principal business of PIIM is to manage and make direct and indirect investments in cable television systems. Prime II Management, Inc. is a Delaware corporation ("PIIMI"). The principal office and principal business address of PIIMI is 3000 One American Center, 600 Congress Avenue, Austin, Texas 78701. The principal business of PIIMI is to act as general partner in PIIM. PIIMI is controlled by its board of directors. During the last five years, none of the Prime Holders has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors), and during the last five years, none of the Prime Holders has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction as the result of which it was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. Prime Holdings, Prime Growth, PCLP, PVII and PIIM (collectively, the "Prime Voting Group") were, prior to December 5, 1997, parties to the voting agreement dated October 31, 1996 (the "New Voting Agreement"), which was incorporated by reference into the Schedule 13D amended hereby. In addition to the Prime Voting Group, the other original parties to the New Voting Agreement were: Austin Ventures, L.P. ("AVLP"), William Blair Venture Partners III Limited Partnership ("Blair"), Centennial Fund III, L.P. ("CFIII"), BancBoston Capital, Inc. ("BBCI"), First Chicago Investment Corporation ("First Chicago"), Madison Dearborn Partners V ("MDP"), MCI Telecommunications Corporation ("MCI"), TCI GCI, Inc. ("TCI"), Ronald A. Duncan ("Duncan") and Robert M. Walp ("Walp") (collectively, together with the Prime Voting Group, the "Voting Group"). The Voting Agreement governs the voting of the Class A Common Stock and the Class Page 14 of 31 B Common Stock, no par value (the "Class B Common Stock") owned by the parties thereto, which originally consisted of the members of the Voting Group. The Class B Common Stock is convertible on a share-per-share basis into Class A Common Stock at any time at the option of the owner of the Class B Common Stock. As a result of the Class B Common Stock's conversion feature into Class A Common Stock, and as a result of the New Voting Agreement, the Voting Group might have been deemed to be the beneficial owner in the aggregate of more than five percent (5%) of the outstanding Class A Common Stock. Pursuant to that certain 1997 Amendment No. 1 to Voting Agreement dated as of December 5, 1997, the members of the Prime Voting Group withdrew as parties to the New Voting Agreement. TCI had previously withdrawn as a member of the Voting Group. In addition, on February 12, 1998, Prime Growth, Prime Holdings, PCLP and PVII (together, the "Original Prime Holders") distributed all of the shares of Class A Common Stock held by them to their respective partners. As a result of such withdrawal from the New Voting Agreement and such distribution of shares by the Original Prime Holders, no member of the Prime Voting Group holds five percent (5%) or more of the outstanding Class A Common Stock. (See Item 5 for the discussion of the Class A Common Stock owned by the Prime Holders.) Each Prime Holder states that the filing of this Statement shall not be construed as an admission that such Prime Holder is, for the purposes of Section 13(d) or 13(g) of the Act, the beneficial owner of any securities covered by this Statement other than those shares of Class A Common Stock in which such Prime Holder has a pecuniary interest. No Prime Holder has a pecuniary interest in shares of Class B Common Stock. (See Item 5 for the discussion of the Class A Common Stock owned by the Prime Holders.) ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION NOT APPLICABLE ITEM 4. PURPOSE OF TRANSACTION. NOT APPLICABLE ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. (a) Pursuant to Rule 13d-3, for purposes of Section 13(d) and 13(g) of the Act, a beneficial owner of a security includes any person who, directly or indirectly, through contract, arrangement, understanding, relationship or otherwise has or shares: (1) voting power which includes the power to vote, or direct the voting of, such security; and/or (2) investment power which includes the power to dispose of, or to direct the disposition of, such security. As described in Item 2, the following direct or indirect general partners of the Original Prime Holders, who received shares of Class A Common Stock in connection with the distribution of shares of Class A Common Stock by the Original Prime Holders, may be deemed to share voting power and investment power with respect to the shares of Class A Common Stock held by them, and may thereby be deemed to be beneficial Page 15 of 31 owners thereof: PIIM, PVI and PIIMI (the "New Prime Holders"). The New Prime Holders, as a group, do not own five percent (5%) or more of the outstanding shares of Class A Common Stock. Each Prime Holder states that the filing of this Statement shall not be construed as an admission that each such Prime Holder is, for the purposes of Section 13(d) or 13(g) of the Act, the beneficial owner of any securities covered by this Statement other than those shares of Class A Common Stock in which such Prime Holder has a pecuniary interest as set forth below in Appendix B. No Prime Holder has a pecuniary interest in shares of Class B Common Stock. (b) See Items 7-10 on the cover page with respect to each reporting person jointly filing this Statement. (c) A 1997 Amendment No. 1 to Voting Agreement was executed and delivered on or about December 30, 1997 to be effective as of December 5, 1997 by the Company, MCI, Walp, Duncan and PIIM. Pursuant to such 1997 Amendment No. 1 to Voting Agreement, the Original Prime Holders and PIIM withdrew as parties to the New Voting Agreement. On February 12, 1998 the Original Prime Holders distributed all of their respective shares of Class A Common Stock to their respective partners. In addition, Prime Investors, PIIMG and PCGP contemporaneously therewith distributed the shares of Class A Common Stock received by them in connection with such distribution to their respective partners and shareholders. The number of shares of Class A Common Stock so distributed is set forth below: Page 16 of 31