Alaska Communications Systems to Acquire Crest Communications Corporation

ANCHORAGE, Alaska--(Business Wire)--
Alaska Communications Systems Group, Inc. ("ACS") (NASDAQ: ALSK)
today announced that it has entered into an agreement to purchase
Crest Communications Corporation ("Crest"), owner and operator of the
North Star submarine fiber-optic cable, one of three existing
submarine fibers connecting Alaska to the continental United States.
ACS is acquiring Crest, free of debt, for a cash consideration of
approximately $70 million. The transaction, which is subject to
various closing conditions, as well as federal and state regulatory
approval, is expected to close in the second half of 2008.

"This acquisition tightly complements our new fiber build, the
Alaska Oregon Network (AKORN), by providing meaningful operating
efficiencies and cost synergies; offering Enterprise customers the
only diverse and redundant routing of traffic between Alaska and the
Lower 48 from a single carrier; enabling traffic management via
Network Operations Control Centers in Alaska and the Lower 48; and
connecting to Southeast Alaska on the way to the Lower 48," said Liane
Pelletier, ACS president, CEO and chair. "The acquisition will also
drive further utilization of ACS' differentiated Alaska terrestrial
assets from Crest's customer base; and allow ACS to participate in the
fast-growing bandwidth market ahead of AKORN's turn up date of Q109."

ACS expects the acquisition will provide it with a new source of
cash flows: $11 million in annual recurring revenue; an EBITDA
contribution from recurring revenue of $3 million annually; and
additional non-recurring IRU sales that have averaged approximately $9
million per annum.

Crest's system includes an undersea fiber system of approximately
1,900 miles with cable landing facilities in Whittier, Juneau, and
Valdez, Alaska, and Nedonna Beach, Oregon. The system also includes
terrestrial transport components linking Nedonna Beach, Oregon to a
Network Operations Control Center in Hillsboro, Oregon and collocation
facilities in Portland, Oregon and Seattle, Washington. Crest has 18
employees responsible for its network, sales, regulatory compliance,
and administration.

ACS expects the Crest acquisition to provide cost synergies of
approximately $1 million per annum in operating expenses for AKORN.
ACS plans to fund a substantial portion of the purchase price from
cash on hand, cash flow from operations and by drawing up to $20
million on its existing revolving credit facility.

About Alaska Communications Systems

Headquartered in Anchorage, ACS is Alaska's leading provider of
broadband and other wireline and wireless solutions to Enterprise,
Carrier and mass market customers. The ACS wireline operations include
the state's most advanced data networks and, to be launched in early
2009, the only diverse undersea fiber optic system connecting Alaska
to the contiguous United States. The ACS wireless operations include
the only statewide 3G CDMA network, reaching across Alaska from the
North Slope to Ketchikan, with coverage extended via best-in-class
CDMA carriers in the Lower 49 and Canada. By investing in the
fastest-growing market segments and attracting the highest-quality
customers, ACS seeks to drive top- and bottom-line growth, while
continually improving customer experience and cost structure through
process improvement. More information can be found on the company's
website at www.acsalaska.com or at its investor site at www.alsk.com.

About Crest Communications Corporation

Crest is a facilities-based provider of high-bandwidth, fiber
optic communications infrastructure to carrier and
corporate/government customers in the Pacific Northwest. Crest
consists of three subsidiaries that own the infrastructure: WCI Cable,
Inc., Northern Lights Holdings, Inc. and World Net Communications,
Inc. The primary assets of the Company consist of an integrated
terrestrial and submarine fiber optic network that links the Alaskan
market to interconnection points in Portland, Oregon and Seattle,
Washington. Crest sells capacity through long-term IRU contracts
through which it receives upfront fees at contract signing and monthly
O&M recurring fees over the life of the contract and through
short-term bandwidth leases. Crest also generates cash flow through
long-term cable landing contracts, which allow other Pacific Ocean
region cables to land at the Company's facilities on the Oregon coast.

Forward-Looking Statements

This press release includes certain "forward-looking statements,"
as that term is defined in the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based on
management's beliefs as well as on a number of assumptions concerning
future events made using information currently available to
management. Readers are cautioned not to put undue reliance on such
forward-looking statements, which are not a guarantee of performance
and are subject to a number of uncertainties and other factors, many
of which are outside ACS' control. Such factors are, without
limitation, achievement of all closing conditions in the definitive
purchase agreement, including obtaining all regulatory approvals; the
company's ability to integrate, market, and maintain the Crest
facilities; changes in capital expenditures, or other factors
affecting the company's ability to generate sufficient earnings and
cash flows to continue to make payments on its substantial debt and
dividend payments to its stockholders; the continued availability of
financing necessary to support future operations and capital
expenditures; changes in accounting policies or practices; changes in
competition, demand or the occurrence of other adverse economic
events; and tax matters. For further information regarding risks and
uncertainties associated with ACS' business, please refer to the
company's SEC filings, including, but not limited to, the sections
entitled "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in our annual report on
Form 10-K for the year ended December 31, 2007. Copies of the
company's SEC filings may be obtained by contacting its investor
relations department at 907-564-7556 or by visiting its investor
relations website at www.alsk.com.

ACS Corporate Communications (Media):
SVP, Corp. Strategy, Development & Marketing
David C. Eisenberg, 907-297-3000
david.c.eisenberg@acsalaska.com
or
ACS Investors (Investors):
Alaska Communications Systems
Investor Relations, 907-564-7556
investors@acsalaska.com

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