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Alaska Communications Systems Reports Fourth Quarter 2011 Results

- Positive Net Income and $125.5 million EBITDA for the year -
- Wireless Net Adds positive for the third consecutive quarter -
- Enterprise Revenue increased over 8% Compared to Prior Year -
- 4G LTE network is in testing phase, with launch scheduled in the first half of 2012 -
- Execution on long term plan to drive growth and free cash flow -

ANCHORAGE, Alaska--(BUSINESS WIRE)-- Alaska Communications Systems Group, Inc. ("ACS") (NASDAQ: ALSK) today
reported financial results for its fourth quarter ended December 31, 2011.

"Our performance for the quarter and full year 2011 was solid. Execution discipline as demonstrated by our 2011 results has
been and will remain an important theme as we implement our business plan," said Anand Vadapalli, ACS president and chief
executive officer. "During this past year, we provided updates on two external events — competitive with the proposed entry of a
new wireless competitor, and regulatory with the new FCC universal service funding reform. Our business plan provides a path
to address both of these external events; by positioning us to grow retail revenues and market share in Alaska, as well as delevering
our balance sheet. The basis of our business plan is our affirmative assessment of the growth potential and our
position in the Alaska telecom market. We anticipate growing market share and retail revenues and driving free cash flow based
on the following assessment:

1. We have a valuable asset mix of products and services and a differentiated broadband network. The focus of service
delivery on this network has been Enterprise and Wireless customers. We will leverage this network to provide broadband
solutions to three key customer segments — Enterprise, Small & Medium Business (SMB) and Consumer. Focus on these
previously underserved customer segments will present growth opportunities for ACS.

2. In addition to growing our top line, we will improve customer retention by investing in customer service, as the economics
of retaining a customer always prevail over the cost of adding a customer.

3. We will relentlessly simplify how we conduct business to drive free cash flow performance. We believe there are
continued opportunities to manage costs, and we will invest in experienced process improvement teams and information
technology systems upgrades to achieve these benefits.

Our business plan also addresses our balance sheet. Free cash flow will be used to reduce debt over the next three years. The
combination of investing in growth, improved service, and simplification while de-levering will drive our financial performance and
build on our track record of success," concluded Vadapalli.

Financial Highlights: Fourth Quarter 2011 Compared to Fourth Quarter 2010

Revenues of $87.5 million increased by $2.7 million, or 3.2 percent, from $84.8 million in the prior year.

  • Enterprise revenue increased by $1.1 million, or 8.1 percent, with data products representing more than 90 percent of our revenues.
  • Wireless revenue increased by $1.6 million, or 4.6 percent, with higher wholesale and roaming revenue of $2.0 million offset by a decrease of $0.4 million in retail service and equipment revenue.
  • Retail and access wireline revenue was relatively unchanged, with declines in retail revenue offset by higher intrastate access revenues.

EBITDA of $30.3 million was slightly below prior year of $30.5 million.

  • Wireless EBITDA increased by $1.9 million, or 14.2 percent, to $15.4 million. Revenue growth and lower equipment subsidies resulted in the improvement.
  • Wireline EBITDA declined by $2.1 million, or 12.4

Click here to read the full 9-page PDF

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