GCI Rolls Out Local Phone Service in Eagle River

Eagle River First Community in MTA to Receive Competitive Choice

ANCHORAGE, Alaska, Feb. 1 /PRNewswire-FirstCall/ -- GCI announced today that it is launching competitive local telephone service in Eagle River, Alaska beginning February 16. Competitive local service will expand to Chugiak and Peters Creek in April, and to all communities throughout the Matanuska Susitna Borough by the end of the year.

GCI will initially provide telephone service over its digital, hybrid-fiber coaxial network or through wholesale arrangements with the Matanuska Telephone Association (MTA). MTA has approximately 60,000 telephone access lines.

According to Ron Duncan, GCI president, this represents a major milestone for residents of the state's largest growing market. "The consumers in MTA will finally experience the benefits of competition, that is, consumer choice, lower prices and better technology."

MTA's rate for basic dial tone is $13.20 per month, more than 40 percent higher than GCI's rate of $9.40. Most consumers want more than basic dial tone and choose a service with features or a bundled offering.

Eagle River residents can now add local service to their Ultimate Package bundle for $15.49. This represents a savings of $7.01 per month compared to MTA's bundle. GCI's Ultimate Package is priced $79.99 and includes 153 digital channels, local phone service with voice mail and 13 other features, 150 free out-of-state long distance minutes and Litespeed Internet access.

GCI's technology offers secure, encrypted digital communication and proactive real-time event monitoring. For the first time, consumers in MTA will have 24-hour customer service, the first month of service free, free installation and access to Alaska Airline miles.

Consumers in MTA have long desired a competitive choice. In a 2005 survey conducted by Hellenthal & Associates, 80 percent of those polled favored local telephone competition.

GCI (Nasdaq: GNCMA) currently provides competitive local telephone service in Anchorage, Fairbanks and Juneau. It estimates that it offers service to 26 percent of the statewide local access lines. Since local competition began in Alaska in 1997, GCI estimates consumers have saved more than $30 million dollars.

To sign up, Eagle River residents may visit the GCI Eagle River store located at 13221 Old Glenn Highway (in the Fred Meyer Shopping Center) or call +1-907-265-5400.

GCI is the largest telecommunications company in Alaska. A pioneer in bundled services, GCI provides local, long distance and wireless telephone, cable television, Internet and data communications services throughout Alaska. More information about the company can be found at www.gci.com .

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 statement sections of Form 10-K and 10-Q filed with the Securities and Exchange Commission.