Exhibit 99.2

          Alaska Communications Initiates Dividend Program; Withdraws
                            IDS Filing with the SEC

    ANCHORAGE, Ala.--(BUSINESS WIRE)--Oct. 28, 2004--Alaska
Communications Systems Group, Inc. ("ACS") (NASDAQ:ALSK) today
announced its board of directors approved the initiation of a
quarterly cash dividend and the withdrawal of its registration
statements previously filed with the Securities and Exchange
Commission (SEC) for an initial public offering of Income Deposit
Securities (IDS).
    The company initiated its first cash dividend at an annual rate of
$0.74 per share payable quarterly. The first quarterly cash dividend
of $0.185 per share is payable on January 19, 2005 to stockholders of
record at the close of business on December 31, 2004. In a separate
press release today, ACS announced its third quarter results. In a
conference call at 5:00 pm ET today management will review the results
and the dividend program.
    "ACS is dedicated to customers and shareholders," stated Liane
Pelletier, ACS president and chief executive officer. "After
reorganizing the company operations to focus on customers, we began
evaluating capital markets options that enable us to reward
shareholders while we continue to grow and invest in Alaska. We have
determined a traditional ongoing, annual dividend program would
emphasize the cash flow characteristics of the business and increase
ACS visibility among investors, while enjoying greater flexibility and
simplicity than the proposed IDS."
    David Wilson, ACS senior vice president and chief financial
officer, added, "The decision to initiate a cash dividend program
reflects our track record of generating strong cash flow streams from
operations and our ability to provide a return to our stockholders. We
are confident we have the resources and advanced technological
infrastructure to stay on top of the technology curve and continue to
capitalize on our investment in a state-of-the-art CDMA 1xRTT and
EV-DO wireless networks, as well as to meet our growth needs going
forward."

    Conference Call

    The company will host a conference call and live webcast today at
5:00 p.m. Eastern Time to discuss third quarter results and the
initiation of the dividend program. For parties in the United States
and Canada, call 800-366-3908 to access the earnings call.
International parties can access the call at 303-262-2130. The live
webcast of the conference call, accessible from the "Investor
Relations" 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 Saturday, October 30, 2004 at 12 midnight ET. To hear the
replay, parties in the United States and Canada should call
800-405-2236 and enter pass code 11011345. International parties
should call 303-590-3000 and enter pass code 11011345.

    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. More information can be found on the Company's website at
www.acsalaska.com or at our investor site at www.alsk.com.

    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.

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