Alaska Communications Systems Reports Second Quarter 2008 Results

Enterprise Segment Revenue Increased 44 percent Compared to Second
Quarter 2007

Wireless Data ARPU up 60%

Prior Year Financials Include Favorable $2.5 million Access
Revenue Settlement

Reduces 2008 Annual Guidance for Revenue by 1.3% and Recurring
EBITDA by 1.5%
ANCHORAGE, Alaska--(Business Wire)--
Alaska Communications Systems Group, Inc. ("ACS") (NASDAQ: ALSK)
today reported financial results for its second quarter ended June 30,
2008.

"Bold strategic investments and quality execution continue to
position ACS as the state's best provider focused on delivering
superior voice and data wireless services and world-class wireline
solutions built for sophisticated enterprise customers," said Liane
Pelletier, ACS president, chief executive officer and chairman.

"Wireless has gone through a momentous shift this year. We
simultaneously repositioned our operations for long-term
competitiveness with the entry of a national brand, at&t; we completed
our migration from TDMA to all CDMA; and we recently upgraded our
network to provide the fastest data speeds in the nation via EVDO Rev
A. As evidenced by our operating metrics, the plans were right and the
execution was solid. Wireless gross adds in the second quarter were
higher than in any of the prior six quarters and churn among our
postpaid subscribers (94% of all subscribers) improved to a 1.5%
monthly level. ACS grew most in the high-quality subscriber segments
with unlimited voice calling plans and data cards accounting for 30%
of quarterly gross adds. Data ARPU increased 60% to $4.59," added
Pelletier.

"We have also been positioning for success in the enterprise
segment. Enterprise revenues are up 44% this quarter over a year ago
and the sales funnel is very strong. We have hired new and trained
existing employees to serve enterprise customers. We have added over
100 new fiber entrance facilities to buildings in the metro areas. We
have upgraded and extended our differentiated Metro Ethernet and MPLS
networks. We will execute a contract this week for a second NOCC in
the lower 48 to provide business continuity, world-class network
management and customer interfaces - all timed for the turn up of
AKORN. The AKORN cable build is on schedule and ACS obtained final
regulatory approval for its acquisition of Crest. These are just a few
of the transformative actions taking place -- making what was once a
collection of local telephone assets into a 21st century wireline
network built to serve the needs of enterprise customers," concluded
Pelletier.

Financial Highlights: Second Quarter 2008 Compared to Second
Quarter 2007

-- Revenues of $94.4 million were in line with 2007 revenues of
$94.5 million

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-- Wireless and Enterprise revenues were up $4.3M

-- Retail wireline revenues were roughly flat

-- Wholesale and network access revenues were down $4.2M
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-- EBITDA of $31.0 million, exclusive of $0.6 million in start up
costs for our long-haul investments, was down from 2007 EBITDA
of $33.6 million

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-- One-time network access settlements of $2.5 million in 2007
did not reoccur in 2008

-- ACS' reset of wireless voice prices to national price
levels drove an impact of $1.3 million. This resulted from
the company's proactive response to at&t's entry into Alaska.
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-- Operating income of $9.7 million compared to $13.4 million in
the prior year.

-- Net cash provided by operating activities of $14.9 million
compared to $19.0 million in the prior year.

-- Net income of $0.9 million, or $0.02 per diluted share,
compared to $6.2 million, or $0.14 per diluted share in the
prior year. Comparative EPS performance was impacted by higher
non-cash depreciation and asset disposal charges; interest
expense on our new $125 million convertible debt offering; and
book tax expense this year but not last.

"We are changing our year-end guidance to reflect the impact from
faster-than-anticipated wireless customer conversion to national rate
plans, the longer sales cycles for some of the enterprise customers
expected to make purchase decisions later in 2008 than originally
anticipated, and the uncertainty surrounding the CETC cap," said David
Wilson, chief financial officer.

"The strength in wireless operating metrics demonstrate that
programs are positioning us to profitably scale the business. In
enterprise, we have significant traction in building a profitable book
of business and we look forward to sharing our success in the coming
quarters," added Wilson.

Metric Highlights: Second Quarter 2008 Compared to First Quarter
2008

-- Wireless subscribers increased by approximately 2.5 percent,
or 3,600, to 148,700.

-- Average retail wireless monthly churn of 1.7 percent was down
from 1.9 percent. Post paid wireless churn improved by 30
basis points to 1.5%.

-- Retail wireless ARPU of $60.51, inclusive of CETC revenue of
$10.39, was down $0.61. Data ARPU contributed $4.59, up 22
percent.

-- DSL lines remained flat at approximately 47,950. ISP ARPU was
up $0.78, or 2.6 percent, driven by improved mix and migration
to higher speeds.

-- Retail local access lines declined by 1.0 percent to 180,500.

-- Total local access lines decreased by approximately 5,600, or
2.6 percent, to 214,200.

Six Month Financial Review

For the six months ended June 30, 2008, total revenues were $191.1
million, which represented a 2.7 percent increase over revenues of
$186.1 million for the same period last year. Net income for the six
months ended June 30, 2008, inclusive of book income tax expense of
$4.9 million, was $6.7 million, or $0.15 per diluted share, compared
to net income of $13.5 million, or $0.31 per share, in the same period
in 2007. Net cash provided by operating activities for the first half
of 2007 was $39.8 million, as compared to $47.0 million in the same
period in 2007. Excluding $0.8 million in start up costs for our
long-haul fiber investments, EBITDA for the six months ended June 30,
2008 was $66.1 million, compared to $66.9 million in the same period
last year.

2008 Business Outlook

For the full-year 2008, ACS is changing its revenue and EBITDA
guidance. Revenues are now expected to be in the range of $380 million
to $390 million versus prior guidance of $385 million to $395 million;
EBITDA, excluding start up costs, to be in the range of $128 million
to $132 million versus prior guidance of $130 million to $134 million;
and the start up costs for its long haul fiber investments is now
expected to be approximately $4 million versus its prior guidance of
$6 million. The company is maintaining its prior guidance of $42
million for maintenance capex; $82 million for capex for AKORN; and
$33 million for net cash interest expense.

Conference Call

The company will host a conference call and live webcast today at
5:00 p.m. Eastern Time. Parties in the United States and Canada can
call 800-257-6607 to access the conference call. Parties outside the
United States and Canada can access the call at 303-228-2961. The live
webcast of the conference call will be accessible from the "Events
Calendar" section of the company's website (www.alsk.com). The webcast
will be archived for a period of 90 days. A telephonic replay of the
conference call will also be available 2 hours after the call and will
run until Thursday, August 7, 2008 at midnight ET. To hear the replay,
parties in the United States and Canada can call 800-405-2236 and
enter pass code 11117721. Parties outside the United States and Canada
can call 303-590-3000 and enter pass code 11117721.

About Alaska Communications Systems

Headquartered in Anchorage, ACS is Alaska's leading provider of
broadband and other wireline and wireless solutions to Enterprise 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.

Forward-Looking EBITDA Guidance

This press release includes information related to management's
estimate of EBITDA for the year ending December 31, 2008. EBITDA, as
defined by the company, may not be similar to EBITDA measures used by
other companies and is not a measurement under generally accepted
accounting principles (GAAP). Management believes that EBITDA provides
useful information to investors about the company's performance
because it eliminates the effects of period-to-period changes in costs
associated with capital investments, interest and stock-based
compensation expense that are not directly attributable to the
underlying performance of the company's business operations.
Management believes the most directly comparable GAAP measure would be
"Net cash provided by operating activities." Due to the difficulty in
forecasting and quantifying the amounts that would be required to be
included in this comparable GAAP measure, the company is not providing
an estimate of year-end net cash provided by operating activities at
this time.

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 and projections as well as on a number of
assumptions concerning future financial results, rates of return,
dividend payments, and other 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, the company's ability to complete,
manage, integrate, market, maintain, and attract sufficient customers
to the products and services it may derive from the construction of
its AKORN fiber facility and its purchase of Crest, the closing of
which remains subject to certain conditions and uncertainties; 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 to support
future operations or expansion; increased competition, including from
national wireless and local wireline facilities-based competitors;
regulatory limitations on pricing or bundling of its communications
services; the company's ability to keep pace with rapid technological
developments in the telecommunications industry; fluctuations in
wireless revenue, including roaming revenue; changes in company's
relationships with its roaming partners; changes in revenue from the
Universal Service Fund or other public policy changes; changes in
accounting policies or practices; changes in interest rates or other
general national, regional or local economic conditions, including
changes in tourism in Alaska. 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 and quarterly reports on Form 10-Q. 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.

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Schedule 1

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in Thousands, Except per Share Amounts)

Three Months Ended Six Months Ended
June 30, June 30,
------------------ -------------------
2008 2007 2008 2007
--------- -------- --------- ---------

Operating revenues:
Wireline $59,071 $60,874 $122,177 $120,842
Wireless 35,285 33,627 68,955 65,282
--------- -------- --------- ---------
Total operating revenues 94,356 94,501 191,132 186,124

Operating expenses:
Wireline (exclusive of
depreciation and
amortization) 43,972 44,543 87,242 88,686
Wireless (exclusive of
depreciation and
amortization) 20,802 17,940 40,923 33,815
Depreciation and
amortization 19,138 18,646 35,601 36,091
Loss on disposal of assets,
net 745 21 759 24
--------- -------- --------- ---------
Total operating expenses 84,657 81,150 164,525 158,616

Operating income 9,699 13,351 26,607 27,508

Other income and expense:
Interest expense (8,676) (7,518) (15,905) (14,965)
Interest income 706 506 1,009 1,035
Other (75) (72) (151) 8
--------- -------- --------- ---------
Total other income and
expense (8,045) (7,084) (15,047) (13,922)

Income before income tax
expense 1,654 6,267 11,560 13,586

Income tax expense (746) (98) (4,876) (105)
--------- -------- --------- ---------

Net income $ 908 $ 6,169 $ 6,684 $ 13,481
========= ======== ========= =========

Net income per share:
Basic $ 0.02 $ 0.14 $ 0.15 $ 0.32
========= ======== ========= =========
Diluted $ 0.02 $ 0.14 $ 0.15 $ 0.31
========= ======== ========= =========

Weighted average shares
outstanding:
Basic 43,362 42,747 43,151 42,566
========= ======== ========= =========
Diluted 44,304 44,145 44,290 44,061
========= ======== ========= =========

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Schedule 2

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Per Share Amounts)

June 30, December 31,
Assets 2008 2007
----------- ------------

Current assets:
Cash and cash equivalents $ 19,033 $ 35,208
Restricted cash 73,660 2,589
Short-term investments 375 790
Accounts receivable-trade, net of
allowance of $8,695 and $8,768 38,607 39,150
Materials and supplies 10,839 10,467
Prepayments and other current assets 5,387 5,155
Deferred taxes 11,971 21,347
----------- ------------
Total current assets 159,872 114,706

Property, plant and equipment 1,276,384 1,209,257
Less: accumulated depreciation and
amortization (857,586) (825,663)
----------- ------------
Property, plant and equipment, net 418,798 383,594

Long-term investments 1,242 -
Goodwill 38,403 38,403
Intangible Assets 21,604 21,604
Debt issuance costs 10,577 7,461
Deferred taxes 101,181 96,095
Deferred charges and other assets 3,159 1,340
----------- ------------
Total assets $ 754,836 $ 663,203
=========== ============

Liabilities and Stockholders' Equity
(Deficit)
Current liabilities:
Current portion of long-term obligations $ 587 $ 780
Accounts payable, accrued and other
current liabilities 56,453 64,070
Advance billings and customer deposits 9,850 10,051
----------- ------------
Total current liabilities 66,890 74,901

Long-term obligations, net of current portion 554,946 432,216
Other deferred credits and long-term
liabilities 81,488 82,075
----------- ------------
Total liabilities 703,324 589,192
----------- ------------
Commitments and contingencies
Stockholders' equity (deficit):
Common stock, $.01 par value; 145,000
authorized 435 429
Additional paid in capital 229,087 257,982
Accumulated deficit (170,629) (177,313)
Accumulated other comprehensive loss (7,381) (7,087)
----------- ------------
Total stockholders' equity (deficit) 51,512 74,011
----------- ------------

Total liabilities and stockholders' equity
(deficit) $ 754,836 $ 663,203
=========== ============

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Schedule 3

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in Thousands)

Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ---------------------
2008 2007 2008 2007
---------- --------- ---------- ----------

Cash Flows from Operating
Activities:
Net income $ 908 $ 6,169 $ 6,684 $ 13,481
Adjustments to reconcile
net income to net cash
provided (used) by
operating activities:
Depreciation and
amortization 19,138 18,646 35,601 36,091
Loss on disposal of
assets, net 745 21 759 24
Gain on sale of long-
term investment - - - (152)
Amortization of debt
issuance costs and
original issue
discount 668 479 1,137 952
Stock-based
compensation 1,144 1,607 2,725 3,430
Deferred taxes 746 - 4,876 -
Other non-cash
expenses 33 135 65 263
Changes in components
of assets and
liabilities:
Accounts receivable
and other current
assets (3,892) (4,988) 311 (977)
Materials and
supplies 1,186 (748) (372) (2,096)
Accounts payable and
other current
liabilities (5,128) (1,798) (7,815) (5,390)
Deferred charges and
other assets (931) 16 (1,708) 111
Other deferred
credits 302 (499) (2,478) 1,263
---------- --------- ---------- ----------

Net cash provided by
operating activities 14,919 19,040 39,785 47,000

Cash Flows from Investing
Activities:
Investment in
construction and
capital expenditures (47,177) (13,741) (70,182) (23,924)
Change in unsettled
construction and
capital expenditures 4,377 6,334 (160) (808)
Purchase of short-term
investments (375) (20,138) (9,400) (37,363)
Proceeds from sale of
short-term
investments 1,690 18,815 9,815 36,040
Purchase of long-term
investments - - (3,625) -
Proceeds from sale of
long-term investments 2,275 - 2,275 162
Placement of funds in
restricted account (71,447) (997) (71,460) (2,979)
Release of funds from
escrow account 389 519 389 2,120
---------- --------- ---------- ----------

Net cash used by
investing activities (110,268) (9,208) (142,348) (26,752)

Cash Flows from Financing
Activities:
Payments of long-term
debt (2,154) (214) (2,521) (632)
Proceeds from the
issuance of long-term
debt 125,000 - 125,000 -
Purchase of call
options (20,431) - (20,431) -
Sale of common stock
warrants 9,852 - 9,852 -
Debt issuance costs (4,253) - (4,253) -
Payment of cash
dividend on common
stock (9,311) (9,184) (18,531) (18,283)
Payment of withholding
taxes on stock-based
compensation (1,171) (8) (3,314) (2,311)
Proceeds from issuance
of common stock 506 840 586 1,070
---------- --------- ---------- ----------

Net cash provided (used)
by financing activities 98,038 (8,566) 86,388 (20,156)

Change in cash and cash
equivalents 2,689 1,266 (16,175) 92

Cash and cash equivalents,
beginning of period 16,344 35,686 35,208 36,860
---------- --------- ---------- ----------

Cash and cash equivalents,
end of period $ 19,033 $ 36,952 $ 19,033 $ 36,952
========== ========= ========== ==========

Supplemental Cash Flow
Data:
Interest paid $ 6,972 $ 7,017 $ 14,003 $ 14,285
Income taxes paid $ 417 $ 219 $ 417 $ 353

Supplemental Noncash
Transactions:
Property acquired under
capital leases $ - $ - $ 58 $ 51
Dividend declared, but
not paid $ 52 $ 21 $ 9,370 $ 9,210

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Schedule 4

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF WIRELINE REVENUES
(Unaudited, in Thousands)

Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------
2008 2007 2008 2007
---------- ------- -------- --------

Retail $23,900 $24,117 $ 47,546 $ 49,073
Wholesale 5,081 6,010 10,416 12,005
Access 21,601 24,850 47,905 48,754
Enterprise 8,489 5,897 16,310 11,010
---------- ------- -------- --------
$59,071 $60,874 $122,177 $120,842
========== ======= ======== ========

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Schedule 5

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF EBITDA CALCULATION
(Unaudited, in Thousands)

Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2008 2007 2008 2007
--------- --------- --------- ---------

Net cash provided by operating
activities $ 14,919 $ 19,040 $ 39,785 $ 47,000
Adjustments to reconcile
net income to net cash
(provided) used by
operating activities:
Depreciation and
amortization (19,138) (18,646) (35,601) (36,091)
Loss on disposal of
assets, net (745) (21) (759) (24)
Gain on sale of long-
term investment - - - 152
Amortization of debt
issuance costs and
original issue
discount (668) (479) (1,137) (952)
Stock-based
compensation (a) (1,144) (1,607) (2,725) (3,430)
Deferred taxes (746) - (4,876) -
Other non-cash expenses (33) (135) (65) (263)
Changes in components
of assets and
liabilities:
Accounts receivable
and other current
assets 3,892 4,988 (311) 977
Materials and
supplies (1,186) 748 372 2,096
Accounts payable and
other current
liabilities 5,128 1,798 7,815 5,390
Deferred charges and
other assets 931 (16) 1,708 (111)
Other deferred
credits (302) 499 2,478 (1,263)
--------- --------- --------- ---------
Net income $ 908 $ 6,169 $ 6,684 $ 13,481
Add (subtract):
Interest expense 8,676 7,518 15,905 14,965
Interest income (706) (506) (1,009) (1,035)
Depreciation and
amortization 19,138 18,646 35,601 36,091
Loss on disposal of
assets, net 745 21 759 24
Gain on sale of long-
term investments - - - (152)
Income tax expense 746 98 4,876 105
Stock-based
compensation (a) 934 1,607 2,515 3,430
--------- --------- --------- ---------
EBITDA $ 30,441 $ 33,553 $ 65,331 $ 66,909
========= ========= ========= =========

Note: In an effort to provide investors with additional information
regarding the Company's results as determined by generally
accepted accounting principles (GAAP), the Company also
discloses certain non-GAAP information which management
utilizes to assess performance and believes provides useful
information to investors. The Company has disclosed its net
income before interest, provisions for taxes, depreciation
expense, gain or loss on asset purchases or disposals,
amortization of intangibles and stock-based compensation
expense (EBITDA) because the Company believes it is an
important indicator as it provides information about our
ability to service debt, pay dividends and fund capital
expenditures. EBITDA is not a GAAP measure and should not be
considered a substitute for net cash provided by operating
activities and other measures of financial performance
recorded in accordance with GAAP.

(a) Adjusted stock-based compensation in 2008 for EBITDA purposes
to omit deferred board of director stock expensed in prior
years.

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Schedule 6

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
ALLOCATION OF STOCK-BASED COMPENSATION
(Unaudited, in Thousands)

Three Months Ended
June 30, 2008
---------------------------------------------
As reported on Stock-Based
Schedule 1 Compensation Adjusted
-------------------- -------------- ---------

Operating expenses:
Wireline (exclusive
of depreciation and
amortization) $ 43,972 $ (828) $ 43,144
Wireless (exclusive
of depreciation and
amortization) 20,802 (106) 20,696
Depreciation and
amortization 19,138 - 19,138
Loss on disposal of
assets, net 745 - 745
-------------------- -------------- ---------
Total operating
expenses $ 84,657 $ (934) $ 83,723
==================== ============== =========

Six Months Ended
June 30, 2008
---------------------------------------------
As reported on Stock-Based
Schedule 1 Compensation Adjusted
-------------------- -------------- ---------

Operating expenses:
Wireline (exclusive
of depreciation and
amortization) $ 87,242 $(2,232) $ 85,010
Wireless (exclusive
of depreciation and
amortization) 40,923 (283) 40,640
Depreciation and
amortization 35,601 - 35,601
Loss on disposal of
assets, net 759 - 759
-------------------- -------------- ---------
Total operating
expenses $164,525 $(2,515) $162,010
==================== ============== =========

Three Months Ended
June 30, 2007
----------------------------------------------
As reported on Stock-Based
Schedule 1 Compensation Adjusted
------------------ -------------- ------------

Operating expenses:
Wireline (exclusive
of depreciation and
amortization) $ 44,543 $(1,454) $ 43,089
Wireless (exclusive
of depreciation and
amortization) 17,940 (153) 17,787
Depreciation and
amortization 18,646 - 18,646
Loss on disposal of
assets, net 21 - 21
------------------ -------------- ------------
Total operating
expenses 81,150 (1,607) 79,543
----------------------------------------------

Six Months Ended
June 30, 2007
----------------------------------------------
As reported on Stock-Based
Schedule 1 Compensation Adjusted
------------------ -------------- ------------

Operating expenses:
Wireline (exclusive
of depreciation and
amortization) $ 88,686 $(3,086) $ 85,600
Wireless (exclusive
of depreciation and
amortization) 33,815 (344) 33,471
Depreciation and
amortization 36,091 - 36,091
Loss on disposal of
assets, net 24 - 24
------------------ -------------- ------------
Total operating
expenses $158,616 $(3,430) $155,186
================== ============== ============

Note: The balances reported on Schedule 1 - Consolidated Statements
of Operations, include the company's adoption of SFAS 123(R)
Share-Based Payment. This schedule shows the company's
operating performance prior to that expense being recorded to
allow analysis of the operating segments without these non-
cash charges.

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Schedule 7

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
INVESTMENT IN CONSTRUCTION AND CAPITAL
(Unaudited, in Thousands)

Three Months Ended Three Months Ended
June 30, June 30,
2008 2007
------------------ ------------------

Investment in construction and
capital $47,177 $13,741

Capitalized interest (694) (231)
------------------ ------------------

Investment in construction and
capital, net of capitalized
interest $46,483 $13,510
================== ==================

Growth 34,886 3,494

Maintenance and other 11,597 10,016
------------------ ------------------

Investment in construction and
capital, net of capitalized
interest $46,483 $13,510
================== ==================

Six Months Ended Six Months Ended
June 30, June 30,
2008 2007
------------------ -------------------

Investment in construction and
capital $70,182 $23,924

Capitalized interest (989) (449)
------------------ -------------------

Investment in construction and
capital, net of capitalized
interest $69,193 $23,475
================== ===================

Growth 49,939 5,354

Maintenance and other 19,254 18,121
------------------ -------------------

Investment in construction and
capital, net of capitalized
interest $69,193 $23,475
================== ===================

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Schedule 8

ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)

June 30, March 31, June 30,
2008 2008 2007
--------- --------- ---------
Wireline:

Retail
Local 180,541 182,318 191,767
Quarterly growth rate in
retail local telephone
access lines -1.0% -1.8% -1.1%
Average monthly revenue
per subscriber for the
quarter $ 19.68 $ 19.75 $ 19.79

Long Distance
Long distance
subscribers 65,011 65,089 64,684
Average monthly
retail revenue per
subscriber for the
quarter $ 21.17 $ 19.60 $ 21.64

Internet
DSL subscribers 47,939 47,948 45,670
Dial-up subscribers 7,934 8,378 10,968
--------- --------- ---------
55,873 56,326 56,638
========= ========= =========

Average monthly DSL
& dial-up revenue
per subscriber for
the quarter $ 31.14 $ 30.36 $ 29.53

Wholesale
Resale access lines 9,182 10,641 9,989
UNE lines 24,508 26,890 36,822
--------- --------- ---------
33,690 37,531 46,811
========= ========= =========

Quarterly growth rate in
wholesale local access
lines -10.2% -7.8% -10.0%
Average monthly revenue
per subscriber for the
quarter $ 27.86 $ 26.96 $ 26.02

Wireless:

Retail wireless
subscribers 148,318 144,755 139,384
Average monthly
churn for the
quarter 1.7% 1.9% 1.4%
Average monthly
revenue per
subscriber for the
quarter (a) $ 60.51 $ 61.12 $ 62.18

Resale wireless
subscribers 361 358 2,539

Total wireless subscribers 148,679 145,113 141,923
Average monthly
churn for the
quarter 1.7% 2.3% 1.4%
Average monthly
revenue per
subscriber for the
quarter (a) $ 60.80 $ 61.12 $ 61.62

(a) CETC added $10.39 to retail and total wireless ARPU in the second
quarter of 2008. It also added $10.76 and $10.77 to retail and
total wireless ARPU in the first quarter of 2008, respectively,
and added $9.92 to both retail and total wireless ARPU in the
second quarter of 2007.
*T

Alaska Communications Systems Group, Inc.
Media:
Director, Corporate Communications
Paula Dobbyn, 907-297-3000
pdobbyn@acsalaska.com
or
Investors:
Director, Investor Relations
Melissa Fouts, 907-564-7556
investors@acsalaska.com

Copyright Business Wire 2008