Alaska Communications Systems 8-K Alaska Communications Systems Reports Fourth Quarter and Year-end 2007 Results

Exhibit 99.1

Alaska Communications Systems Reports Fourth Quarter and Year-end 2007 Results

Annual Revenues Increase 10.6% to $385.8 Million from $348.7 Million in 2006

Wireless now Comprises 36% of Company Revenues

Annual Enterprise Segment Revenues Increase 45%

2007 Cash Provided by Operating Activities Increased 14.3% to $104.9 Million from $91.8 Million in 2006

Annual EBITDA of $138.1 Million Increased 14.0% from $121.2 Million in 2006

ANCHORAGE, Alaska--(BUSINESS WIRE)--Alaska Communications Systems Group, Inc. (“ACS”) (NASDAQ:ALSK) today reported financial results for its fourth quarter and year ended December 31, 2007.

Liane Pelletier, ACS president and chief executive officer, stated, “Our 2007 performance represents the third consecutive year in which we exceeded revenue and EBITDA targets. Wireless revenue, now 36 percent of company revenues, benefited from revenue growth of 19 percent and lower churn. Wireline revenue also grew, at an overall rate of 6 percent, and 45 percent within the enterprise segment; this growth establishes an important track record and contributes meaningfully to our plans for long term value creation in the $200 million Alaska enterprise market.”

“For 2008, we will continue the company’s transformation and pursue compelling, high ROI and differentiated growth priorities. Our priorities are unambiguous: continue to grow a high quality wireless business by providing the best customer experience; continue to add the building blocks called for by enterprise customers; continue to capture enterprise revenues sufficient to cover the cash carry costs of our long haul fiber facility, the Alaska Oregon Network (AKORN), at launch date; and continue to leverage our resources through process improvement. These represent the most meaningful ways to accelerate shareholder value creation,” concluded Pelletier.

Financial Highlights: Fourth Quarter 2007 Compared to Fourth Quarter 2006

• Revenues were $99.1 million, a 7.9 percent increase over fourth quarter 2006 revenues of $91.9 million.
• EBITDA was $34.0 million, an increase of 7.9 percent, compared to $31.5 million for the year ago period.
• Operating income of $15.0 million was up 27.8 percent from $11.8 million in the prior year.
• Net cash provided by operating activities of $26.6 million was in line with the prior year performance of $26.7 million.
• The company posted net income of $120.4 million, or $2.71 per diluted share, compared to $4.2 million, or $0.10 per diluted share during the fourth quarter of 2006. Fourth quarter 2007 benefited from a one time net tax gain of $111.2 million.

David Wilson, ACS senior vice president and chief financial officer, said, “Solid execution against our strategic plan continues to drive expansion in shareholder cash flow, with $104.9 million of cash generated from operating activities in 2007, up 14.3 percent over the prior year. Our operating performance in 2007 also benefited from higher than run rate wireline network access revenue which benefited from favorable carrier settlements and $6.5 million in regulatory agency settlements.”

“We remain comfortably positioned to fund our long haul fiber investment having closed the quarter with $36.0 million in unrestricted cash and short term investments, down only $0.9 million in a year where we invested $21.6 million in our growth capex program and delevered by $5.1 million; full access to our $45 million revolver; a net debt to EBITDA leverage ratio of only 2.9 times; and an expected dividend payout ratio, inclusive of $6.0M in estimated launch costs for AKORN, of less than 70 percent,” noted Wilson.

“Finally, the numbers reported today exceed revenue and EBITDA expectations of $380 million and $132 million, respectively, that we shared with markets on February 22^nd. The increase is primarily attributable to a change in estimate following management’s review of assumptions used in our network access revenue reserving process which resulted in network access revenue increasing by $4.5 million, inclusive of a $3.1 million gain for the first three quarters of 2007,” concluded Wilson.

Metric Highlights: Fourth Quarter 2007 Compared to Third Quarter 2007

• Increased retail wireless subscribers by 2.1 percent, or 2,950, bringing the total to approximately 144,500.
• Average retail wireless monthly churn of 1.5 percent was down from 1.7 percent in the prior quarter.
• Recorded retail wireless ARPU of $64.20, a seasonally consistent shift from $64.43, inclusive of CETC revenue of $11.63 and $10.89.
• DSL lines increased by nearly 1,300 to approximately 47,500 with retail line penetration growing to 25.6 percent.
• Retail local access lines declined by 1.5 percent to 185,700.
• Recorded approximately 226,400 total local access lines. Total local access lines decreased by approximately 5,300 or 2.3 percent.

Annual Financial Review

For the twelve months ended December 31, 2007:

• Total revenues were $385.8 million, which represented a 10.6 percent increase over 2006 revenues of $348.7 million.
• Net income for 2007 was $144.1 million, or $3.26 per share (diluted), as compared to a net income of $13.3 million, or $0.31 per share, in 2006. Net income benefited from a one-time, non-cash, income tax benefit of $111.2 million arising from the release of the Company’s valuation reserve for its deferred tax asset;
• Net cash provided by operating activities for 2007 was $104.9 million as compared to $91.8 million in 2006.
• EBITDA for 2007 was $138.1 million, an increase of 14.0 percent from $121.2 million in 2006. 2007 performance benefited from network access revenue that management estimates was $10 million higher than long term trends and $0.7 million of out-of-period CETC revenue received in the first quarter.
• Investment in construction and capital investments, net of capitalized interest, totaled $60.9 million, comprising maintenance capital spend of $39.3 million; and investments in growth capital expenditures of $21.6 million.

2008 Business Outlook

For the full-year 2008, revenues are expected to be in the range of $385 million to $395 million and EBITDA is expected to be in the range of $130 million to $134 million, excluding $6 million in start-up costs related to our AKORN fiber investment and other building blocks designed to serve the enterprise market. For 2008, ACS expects maintenance capital expenditures of $42 million and $82 million in capital expenditures related to the fiber facility. ACS expects net cash interest to be approximately $30 million.

Pelletier noted, “Our 2008 outlook reflects expected growth in the wireless, data and enterprise segments, as well as specific investments in these areas to assure their long term success. 2008 builds on the transformation begun a few years ago; the company’s proven strategy and execution ability will serve us well as we both manage the current business and build a new high ROI growth engine to deliver shareholder value.”

Restatement of Financial Results

The financial results presented in this release for the periods ended December 31, 2006 have been restated. For detailed information about the restatement, please refer to the company's Annual Report on Form 10-K, which the company expects to file on or before March 21, 2008.

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 800-366-7449 to access the conference call. Parties outside the United States and Canada can access the call at 303-262-2191. 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 Wednesday, March 19 2008 at midnight ET. To hear the replay, parties in the United States and Canada can call 800-405-2236 and enter pass code 11110829. Parties outside the United States and Canada can call 303-590-3000 and enter pass code 11110829.

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.

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 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, 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 the long-haul fiber facility; fluctuations in wireless revenue, including roaming revenue; changes in company's relationships with its roaming partners; increased competition, including from national wireless and local wireline facilities-based competitors; changes in revenue from Universal Service Funds; changes in capital expenditures, or other factors affecting the company's ability to generate sufficient earnings and cash flows to continue to make dividend payments to its stockholders; regulatory limitations on the company's ability to change its pricing or bundle its communications services or other public policy changes; the continued availability of financing necessary to support future business; changes in accounting policies or practices; changes in the demand for the company's products and services; rapid technological developments in the telecommunications industry; 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.

												Schedule 1
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in Thousands, Except per Share Amounts)
			Three Months Ended						Twelve Months Ended
			December 31,						December 31,
				2007			2006			2007			2006
						Restated						Restated
Operating revenues:
	Wireline		$	64,028		$	59,249		$	248,265		$	233,351
	Wireless			35,079			32,605			137,520			115,370
		Total operating revenues		99,107			91,854			385,785			348,721
Operating expenses:
	Wireline (exclusive of depreciation and amortization)			45,470			46,166			179,456			172,421
	Wireless (exclusive of depreciation and amortization)			20,727			16,531			74,305			62,478
	Depreciation and amortization			17,754			17,385			71,337			69,096
	Loss on disposal of assets, net			111			-			248			1,105
		Total operating expenses		84,062			80,082			325,346			305,100
Operating income				15,045			11,772			60,439			43,621
Other income and expense:
	Interest expense			(5,947	)		(7,584	)		(28,386	)		(30,445	)
	Loss on extinguishment of debt			-			-			(355	)		(9,650	)
	Interest income			500			549			2,020			1,835
	Other			(712	)		(83	)		(776	)		8,360
		Total other income and expense		(6,159	)		(7,118	)		(27,497	)		(29,900	)
Income before income tax expense				8,886			4,654			32,942			13,721
	Income tax benefit (expense)			111,469			(443	)		111,194			(443	)
Net income			$	120,355		$	4,211		$	144,136		$	13,278
Net income per share:
	Basic		$	2.81		$	0.10		$	3.38		$	0.32
	Diluted		$	2.71		$	0.10		$	3.26		$	0.31
Weighted average shares outstanding:
	Basic			42,848			42,249			42,701			42,045
	Diluted			44,362			43,820			44,185			43,387

						Schedule 2
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands Except Per Share Amounts)
			December 31,			December 31,
Assets				2007			2006
						Restated
Current assets:
	Cash and cash equivalents		$	35,208		$	36,860
	Restricted cash			2,589			1,700
	Short-term investments			790			-
	Accounts receivable-trade, net of allowance of $8,768 and $7,434			39,150			38,875
	Materials and supplies			10,467			7,977
	Prepayments and other current assets			5,155			3,514
	Deferred taxes			21,347			-
		Total current assets		114,706			88,926
Property, plant and equipment				1,209,257			1,165,108
Less: accumulated depreciation and amortization				(825,663	)		(773,744	)
	Property, plant and equipment, net			383,594			391,364
Goodwill				38,403			38,403
Intangible Assets				21,604			21,604
Debt issuance costs				7,461			9,437
Deferred tax assets				96,095			-
Deferred charges and other assets				1,340			6,482
Total assets			$	663,203		$	556,216
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
	Current portion of long-term obligations		$	780		$	1,025
	Accounts payable, accrued and other current liabilities			64,070			65,516
	Advance billings and customer deposits			10,051			10,641
		Total current liabilities		74,901			77,182
Long-term obligations, net of current portion				432,216			437,188
Other deferred credits and long-term liabilities				82,075			72,881
Total liabilities				589,192			587,251
Commitments and contingencies
Stockholders' equity (deficit):
	Common stock, $.01 par value; 145,000 authorized			429			423
	Additional paid in capital			309,886			308,407
	Accumulated deficit			(229,217	)		(341,431	)
	Accumulated other comprehensive income (loss)			(7,087	)		1,566
		Total stockholders' equity (deficit)		74,011			(31,035	)
Total liabilities and stockholders' equity (deficit)			$	663,203		$	556,216

													Schedule 3
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, in Thousands)
				Three Months Ended						Twelve Months Ended
				December 31,						December 31,
					2007			2006			2007			2006
							Restated						Restated
Cash Flows from Operating Activities:
	Net income			$	120,355		$	4,211		$	144,136		$	13,278
	Adjustments to reconcile net income to net cash provided (used) by operating activities:
		Depreciation and amortization			17,754			17,385			71,337			69,096
		Loss on disposal of assets, net			111			-			248			1,105
		Gain on sale of long-term investment			-			-			(152	)		(6,685	)
		Amortization of debt issuance costs and original issue discount			473			484			2,059			5,180
		Stock based compensation			1,121			2,392			6,390			7,667
		Deferred taxes			(112,495	)		-			(112,495	)		-
		Excess tax benefit from share-based payments			(755	)		-			(755	)		-
		Other non-cash expenses			348			234			742			234
		Changes in components of assets and liabilities:
			Accounts receivable and other current assets		(1,388	)		1,143			(1,896	)		2,136
			Materials and supplies		(631	)		1,555			(2,490	)		(92	)
			Accounts payable and other current liabilities		4,927			8,219			(1,607	)		8,823
			Deferred charges and other assets		71			4,452			(193	)		3,856
			Other deferred credits		(3,300	)		(13,349	)		(389	)		(12,774	)
	Net cash provided by operating activities				26,591			26,726			104,935			91,824
Cash Flows from Investing Activities:
		Investment in construction and capital expenditures			(22,661	)		(20,717	)		(62,788	)		(59,959	)
		Change in unsettled construction and capital expenditures			(1,417	)		741			(509	)		(915	)
		Purchase of short-term investments			(7,700	)		(17,900	)		(64,638	)		(57,500	)
		Proceeds from sale of short-term investments			6,910			17,900			63,848			68,025
		Proceeds from sale of long-term investments			-			-			162			7,663
		Placement of funds in restricted account			(30	)		-			(3,009	)		-
		Release of funds from escrow account			-			-			2,120			2,715
	Net cash used by investing activities				(24,898	)		(19,976	)		(64,814	)		(39,971	)
Cash Flows from Financing Activities:
		Payments of long-term debt			(196	)		(202	)		(5,089	)		(61,860	)
		Proceeds from the issuance of long-term debt			-			-			-			52,900
		Debt issuance costs			-			-			-			(1,349	)
		Payment of cash dividend on common stock			(9,210	)		(9,072	)		(36,697	)		(35,475	)
		Payment of withholding taxes on stock-based compensation			(7	)		(7	)		(2,330	)		(872	)
		Excess tax benefit from share-based payments			755			-			755			-
		Proceeds from the issuance of common stock			408			1,149			1,588			2,786
	Net cash used by financing activities				(8,250	)		(8,132	)		(41,773	)		(43,870	)
Change in cash and cash equivalents					(6,557	)		(1,382	)		(1,652	)		7,983
Cash and cash equivalents, beginning of period					41,765			38,242			36,860			28,877
Cash and cash equivalents, end of period				$	35,208		$	36,860		$	35,208		$	36,860
Supplemental Cash Flow Data:
	Interest paid			$	7,231		$	7,025		$	28,795		$	31,280
	Income taxes paid			$	37		$	264		$	545		$	264
Supplemental Noncash Transactions:
	Property acquired under capital leases			$	-		$	60		$	51		$	60
	Dividend declared, but not paid			$	9,226		$	9,105		$	9,226		$	9,105

							Schedule 4
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF WIRELINE REVENUES AND EXPENSES
(Unaudited, in Thousands)
New View
			Three Months Ended				Twelve Months Ended
			December 31,				December 31,
			2007		2006		2007		2006
	Retail		$	23,957	$	23,622	$	97,865	$	95,568
	Wholesale			5,636		7,123		23,635		25,406
	Access			26,562		23,693		100,893		94,489
	Enterprise			7,873		4,811		25,872		17,888
			$	64,028	$	59,249	$	248,265	$	233,351
Old View
			Three Months Ended				Twelve Months Ended
			December 31,				December 31,
			2007		2006		2007		2006
					Restated				Restated
Local network service			$	18,783	$	19,750	$	77,511	$	80,177
Network access				25,412		22,678		96,534		90,628
Deregulated and other				5,504		5,996		22,377		20,987
	Local telephone			49,699		48,424		196,422		191,792
	Internet/Data			8,314		6,602		31,082		25,221
	Interexchange			6,015		4,223		20,761		16,338
		Total wireline revenue	$	64,028	$	59,249	$	248,265	$	233,351
	Local telephone		$	32,374	$	34,514	$	129,134	$	130,516
	Internet/Data			9,141		8,034		35,702		29,659
	Interexchange			3,955		3,618		14,620		12,246
		Total wireline expense (a)	$	45,470	$	46,166	$	179,456	$	172,421
(a)	Expenses are shown net of depreciation and amortization.

										Schedule 5
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
SCHEDULE OF EBITDA CALCULATION
(Unaudited, in Thousands)
				Three Months Ended						Twelve Months Ended
				December 31,						December 31,
					2007			2006			2007			2006
							Restated						Restated
Net cash provided by operating activities				$	26,591		$	26,726		$	104,935		$	91,824
	Adjustments to reconcile net income to net cash (provided) used by operating activities:
		Depreciation and amortization			(17,754	)		(17,385	)		(71,337	)		(69,096	)
		Loss on disposal of assets, net			(111	)		-			(248	)		(1,105	)
		Gain on sale of long-term investment			-			-			152			6,685
		Amortization of debt issuance costs and original issue discount			(473	)		(484	)		(2,059	)		(5,180	)
		Stock based compensation			(1,121	)		(2,392	)		(6,390	)		(7,667	)
		Deferred taxes			112,495			-			112,495			-
		Excess tax benefit from share-based payments			755			-			755			-
		Other non-cash expenses			(348	)		(234	)		(742	)		(234	)
		Changes in components of assets and liabilities:
		Accounts receivable and other current assets			1,388			(1,143	)		1,896			(2,136	)
		Materials and supplies			631			(1,555	)		2,490			92
		Accounts payable and other current liabilities			(4,927	)		(8,219	)		1,607			(8,823	)
		Deferred charges and other assets			(71	)		(4,452	)		193			(3,856	)
		Other deferred credits			3,300			13,349			389			12,774
Net income				$	120,355		$	4,211		$	144,136		$	13,278
	Add (subtract):
		Interest expense			5,947			7,584			28,386			30,445
		Loss on extinguishment of debt			-			-			355			9,650
		Interest income			(500	)		(549	)		(2,020	)		(1,835	)
		Depreciation and amortization			17,754			17,385			71,337			69,096
		Loss on disposal of assets, net			111			-			248			1,105
		Gain on Crest asset purchase			-			-			-			(1,979	)
		Gain on sale of long-term investments			-			-			(152	)		(6,685	)
		RTB refund accrual			641			-			641			-
		Income tax (benefit) expense			(111,469	)		443			(111,194	)		443
		Stock based compensation			1,121			2,392			6,390			7,667
			EBITDA	$	33,960		$	31,466		$	138,127		$	121,185
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.

Schedule 6
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
ALLOCATION OF STOCK BASED COMPENSATION
(Unaudited, in Thousands)
		Three Months Ended							Three Months Ended
		December 31, 2007							December 31, 2006
		As reported on Schedule 1		Stock Based Compensation			Adjusted		As reported on Schedule 1		Stock Based Compensation				Adjusted
Operating expenses:
Wireline (exclusive of depreciation and amortization)		$	45,470	$	(993	)	$	44,477	$	46,166		$	(2,143	)		$	44,023
Wireless (exclusive of depreciation and amortization)			20,727		(128	)		20,599		16,531			(249	)			16,282
Depreciation and amortization			17,754		-			17,754		17,385			-				17,385
Loss on disposal of assets, net			111		-			111		-			-				-
	Total operating expenses	$	84,062	$	(1,121	)	$	82,941		80,082			(2,392	)			77,690
		Twelve Months Ended							Twelve Months Ended
		December 31, 2007							December 31, 2006
		As reported on Schedule 1		Stock Based Compensation			Adjusted		As reported on Schedule 1		Stock Based Compensation				Adjusted
Operating expenses:
Wireline (exclusive of depreciation and amortization)		$	179,456	$	(5,711	)	$	173,745	$	172,421		$	(6,906	)		$	165,515
Wireless (exclusive of depreciation and amortization)			74,305		(679	)		73,626		62,478			(761	)			61,717
Depreciation and amortization			71,337		-			71,337		69,096			-				69,096
Loss on disposal of assets, net			248		-			248		1,105			-				1,105
	Total operating expenses	$	325,346	$	(6,390	)	$	318,956	$	305,100		$	(7,667	)		$	297,433
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.

Schedule 7
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
INVESTMENT IN CONSTRUCTION AND CAPITAL
(Unaudited, in Thousands)
	Three Months Ended			Three Months Ended			Twelve Months Ended			Twelve Months Ended
	December 31,			December 31,			December 31,			December 31,
	2007			2006			2007			2006
				Restated						Restated
Investment in construction and capital	$	22,661		$	20,717		$	62,788		$	59,959
Capitalized interest		(1,156	)		(224	)		(1,904	)		(808	)
Investment in construction and capital, net of capitalized interest	$	21,505		$	20,493		$	60,884		$	59,151
Growth		9,625			4,569			21,571			22,103
Maintenance and other		11,880			15,924			39,313			37,048
Investment in construction and capital, net of capitalized interest	$	21,505		$	20,493		$	60,884		$	59,151

Schedule 8
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)
	December 31,	September 30,	December 31,
	2007	2007	2006
Wireline:
Retail
Local	185,658	188,549	194,815
Quarterly growth rate in retail local telephone access lines	-1.5%	-1.7%	-0.6%
Average monthly revenue per subscriber for the quarter	$ 19.69	$ 19.80	$ 19.43
Long Distance
Long distance subscribers	65,256	64,511	63,995
Average monthly retail revenue per subscriber for the quarter	$ 21.08	$ 21.84	$ 21.01
Internet
DSL subscribers	47,501	46,239	44,066
Dial-up subscribers	9,125	10,059	12,591
	56,626	56,298	56,657
Average monthly DSL & dial-up revenue per subscriber for the quarter	$ 29.44	$ 29.83	$ 28.88
Wholesale
Resale access lines	10,774	9,976	11,226
UNE lines	29,922	33,111	46,626
	40,696	43,087	57,852
Quarterly growth rate in wholesale local access lines	-5.5%	-8.0%	-8.4%
Average monthly revenue per subscriber for the quarter	$ 26.74	$ 26.28	$ 22.83
Wireless:
Retail wireless subscribers	144,451	141,501	130,971
Average monthly churn for the quarter	1.5%	1.7%	1.7%
Average monthly revenue per subscriber for the quarter (b)	$ 64.20	$ 64.43	$ 60.42
Resale wireless subscribers	1,999	2,307	3,017
Total wireless subscribers	146,450	143,808	133,988
Average monthly churn for the quarter (a)	1.5%	1.7%	1.8%
Average monthly revenue per subscriber for the quarter (b)	$ 63.84	$ 64.11	$ 60.01
(a) Prior year churn has been restated to negate the gross up of installs and disconnects that were caused by certain account changes. In prior periods, December 31, 2006 churn was reported at 2.1%.
(b) CETC added $11.63 and $11.64 to retail and total wireless ARPU in the fourth quarter of 2007, respectively. It also added $10.89 to retail and total wireless ARPU in the third quarter of 2007 and added $9.85 to both retail and total wireless ARPU, in the fourth quarter of 2006.

Schedule 9a
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
RESTATEMENT OF CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, in Thousands)
	Nine Months ended September 30, 2007
	As Reported		Adjustments		As Restated
Operating revenues:
Wireline	$ 181,409		$ 2,828		$ 184,237
Wireless	102,227		214		102,441
Total operating revenues	283,636		3,042		286,678
Operating expenses:
Wireline (exclusive of depreciation and amortization)	134,166		(180	)	133,986
Wireless (exclusive of depreciation and amortization)	53,394		184		53,578
Depreciation and amortization	48,368		5,215		53,583
Loss (gain) on disposal of assets, net	137		-		137
Total operating expenses	236,065		5,219		241,284
Operating income	47,571		(2,177	)	45,394
Other income and expense:
Interest expense	(23,064	)	625		(22,439	)
Loss on extinguishment of debt	(355	)	-		(355	)
Interest income	1,520		-		1,520
Other	(64	)	-		(64	)
Total other income and expense	(21,963	)	625		(21,338	)
Income before income tax expense	25,608		(1,552	)	24,056
Income tax expense	(275	)	-		(275	)
Net income	$ 25,333		$ (1,552	)	$ 23,781
Net income per share:
Basic	$ 0.59		$ (0.04	)	$ 0.56
Diluted	$ 0.57		$ (0.04	)	$ 0.54
Weighted average shares outstanding
Basic	42,649		-		42,649
Diluted	44,185		-		44,185
Schedule 9b
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
RESTATEMENT OF CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, in Thousands)
	Twelve Months ended December 31, 2006
	As Reported		Adjustments		As Restated
Operating revenues:
Wireline	$ 234,233		$ (882	)	$ 233,351
Wireless	115,584		(214	)	115,370
Total operating revenues	349,817		(1,096	)	348,721
Operating expenses:
Wireline (exclusive of depreciation and amortization)	172,436		(15	)	172,421
Wireless (exclusive of depreciation and amortization)	62,022		456		62,478
Depreciation and amortization	63,259		5,837		69,096
Loss (gain) on disposal of assets, net	1,105		-		1,105
Total operating expenses	298,822		6,278		305,100
Operating income	50,995		(7,374	)	43,621
Other income and expense:
Interest expense	(31,103	)	658		(30,445	)
Loss on extinguishment of debt	(9,650	)	-		(9,650	)
Interest income	1,835		-		1,835
Other	8,360		-		8,360
Total other income and expense	(30,558	)	658		(29,900	)
Income before income tax expense	20,437		(6,716	)	13,721
Income tax expense	(443	)	-		(443	)
Net income	$ 19,994		$ (6,716	)	$ 13,278
Net income per share:
Basic	$ 0.48		$ (0.16	)	$ 0.32
Diluted	$ 0.46		$ (0.15	)	$ 0.31
Weighted average shares outstanding
Basic	42,045		-		42,045
Diluted	43,387		-		43,387

CONTACT:
Alaska Communications Systems
Corporate Communications:
Mary Gasperlin, 907-297-3000
Director, Corporate Communications
mary.gasperlin@acsalaska.com
or
Investors:
Investor Relations, 907-564-7556
investors@acsalaska.com