Alaska Communications Systems Announces Refinancing Plans Including a

    Business Editors

    ANCHORAGE, Alaska--(BUSINESS WIRE)--Jan. 4, 2005--Alaska Communications Systems Group, Inc. ("ACS") (NASDAQ: ALSK) today announced plans for a $75 million common stock offering of primary shares and for a new senior secured credit facility. The proposed senior credit facility is expected to consist of a $50 million revolving credit facility and a $335 million term loan facility. The company plans to use the net proceeds from the proposed equity offering and borrowings under the senior credit facility to finance a portion of the proposed repayment of its existing senior secured credit facility and the proposed repurchase of all of its outstanding 9 3/8% senior subordinated notes due 2009 and approximately 35 percent of its outstanding 9 7/8% senior notes due 2011.
    The shares of common stock will be offered under the registration statement on Form S-3 that the company filed on December 20, 2004 with the Securities and Exchange Commission (the "SEC"). It is currently expected that the offering will be made before the end of January 2005. A prospectus supplement will be filed with the SEC containing specific information about the terms of the proposed equity offering.
    The completion of any equity offering, senior credit facility and refinancing will be subject to a number of conditions, including market conditions. As a result, there can be no assurance as to the terms or size of any equity offering, senior credit facility or refinancing or that an equity offering, senior credit facility and refinancing in fact will be completed.
    A registration statement relating to the common stock has been filed with the SEC but has not yet become effective. The common stock may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common stock in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.
    This press release is not an offer to purchase or a solicitation of an offer to sell with respect to any of the senior subordinated notes or the senior notes. Any such purchase, if made, will be made only by an offer to purchase that will be sent to noteholders.

    About Alaska Communications Systems

    ACS is the leading integrated communications provider in Alaska, offering local telephone service, wireless, long distance, data, and Internet services to business and residential customers throughout Alaska.

    Safe Harbor Statement

    Statements about future results and other expectations constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and the current economic environment. The company cautions that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. A number of factors in addition to those discussed herein could cause actual results to differ materially from expectations. The company's financial planning is affected by business and economic conditions and changes in customer order patterns. Any projections are inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of ACS. Important assumptions and other important factors, including risk factors, which could cause actual results to differ materially from those in the forward-looking statements, are specified in the company's Form 10-K for the year ended December 31, 2003 and other filings with the SEC. The company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events, or otherwise.

--30--WG/sf*

CONTACT: Alaska Communications Systems Mary Ann Pease, 907-297-3000 mpease@acsalaska.com or Lippert/Heilshorn & Associates ACS Investors: Kirsten Chapman or David Barnard, CFA, 415-433-3777 david@lhai-sf.com

KEYWORD: ALASKA INDUSTRY KEYWORD: TELECOMMUNICATIONS SOURCE: Alaska Communications Systems Group, Inc.

Copyright Business Wire 2005