Exhibit        99.1

March 6,        2008

John Lowber, (907) 868-5628; jlowber@gci.com

Bruce Broquet, (907) 868-6660; bbroquet@gci.com

David Morris, (907) 265-5396; dmorris@gci.com

 

**FOR        IMMEDIATE RELEASE**

 

**GCI        REPORTS 2007 FINANCIAL RESULTS**

         

|   | **•** | Net income of $13.5 million or $0.22 per diluted                        share |
|--------|------------|-------------------------------------------------------------------------------|

|   | **•** | Consolidated revenues of $520.3 million |
|--------|------------|-----------------------------------------|

|   | **•** | EBITDAS of $153.7 million |
|--------|------------|---------------------------|

 

**ANCHORAGE, AK**-- GCI (NASDAQ:GNCMA) today        reported its 2007 results with net income of $13.5 million, or diluted earnings per share        of $0.22. The company’s 2007 net income compares to income of $18.5 million, or        diluted earnings per share of $0.33, in 2006. GCI recorded net income of $3.8 million or        $0.06 per share on a diluted basis in the fourth quarter of 2007 that compares to net        income of $3.1 million or $0.05 per share on a diluted basis for the fourth quarter of        2006.

 

GCI’s revenues for 2007 increased 9.0 percent to $520.3 million over        2006 revenues of $477.5 million. For the fourth quarter of 2007, revenues totaled $131.3        million as compared to $121.4 million in the fourth quarter of 2006, an increase of 8.2        percent. The annual and quarterly revenue increase was primarily due to the increase in        consumer revenue for 2007. Revenues, as expected, were down 2.1 percent sequentially when        compared to third quarter 2007 revenues of $134.1 million. The sequential decrease in        revenue was primarily due to normal seasonality in the company’s voice        products.

 

Earnings        before interest, taxes, depreciation, amortization and share based compensation expense        (EBITDAS) for 2007 totaled $153.7 million. EBITDAS for 2006 totaled $156.3 million. EBITDAS        for 2007 decreased $2.6 million or 1.6 percent as compared to 2006. The decrease in annual        EBITDAS is due primarily to the decrease in EBITDAS from the network access services and        commercial segments mostly off set by the increase in EBITDAS from the consumer        segment.

 

Fourth        quarter 2007 EBITDAS totaled $38.8 million and compares to $37.1 million, an increase of        4.6 percent from the fourth quarter of 2006. The increase in EBITDAS is primarily        attributable to increases in the consumer business EBITDAS.

 

Sequentially, fourth quarter 2007 EBITDAS of $38.8 million was relatively        unchanged from the third quarter 2007. Increases in consumer and managed broadband EBITDAS        off set the sequential decreases in network access and commercial EBITDAS.

 

GCI        announced in its third quarter conference call that it expected 2007 annual revenues in the        range of $514 million to $534 million and 2007 EBITDAS of $152 million to $154 million.        GCI’s 2007 actual results are within the expected ranges discussed during the third        quarter call.

 

GCI        anticipates revenues of $550 million to $560 million and EBITDAS of more than $165 million        for the year 2008. First quarter revenues are expected to total $130 million to $133        million and EBITDAS is expected to exceed $37 million.

 

“GCI had a challenging and difficult year in 2007 with the loss of        more than $20 million in revenue from a single carrier customer and increased pricing        pressures across our carrier business,” said GCI president, Ron Duncan. “But        for the loss of that customer’s traffic we would have met our financial goals for the        year. The good news is that as of the first of the year all of that carrier’s traffic        is back on our network. With the exception of the previously announced shift in carrier        revenue as a result of the Dobson/AT&T rearrangement I expect the carrier business to        be much more stable in 2008.”

 

“Other than the results of our network access business GCI had a very        good year in 2007. We experienced powerful growth in all categories of customers and        service. Consumer revenues grew by 25 percent and EBITDAS from the consumer business was up        more than 40 percent. For the first time contribution from the company’s consumer        segment exceeded that from the network access business. This trend will accelerate in 2008        as revenues and EBITDAS from the Dobson/AT&T arrangement shift from network access to        the consumer and commercial categories. The net effect will be to position the company with        a much more diversified mix of revenue and EBITDAS.”

 

“Growth in fundamental customer metrics remains strong as we enter the        new year reflecting both the expansion in our competitive footprint and the continued        strength of our bundled product offerings. Additionally the acceleration of the shift to        our own facilities for the provision of local services is improving margins in the voice        business in spite of continued price pressures.”

 

“We are investing aggressively in 2008 as we launch a new satellite,        build out our statewide wireless system and expand the footprint of our core product        offerings. I am convinced that the returns from these investments will allow us to attain        our previously announced financial goals and will result in significant increases in        shareholder value.”

         

**Highlights**

| **•** | Consumer revenues for 2007 totaled $223.5 million, an                        improvement of 24.9 percent over 2006. Video, data and wireless revenues                        provided strong growth for the year, and, as expected, voice revenues for                        the year 2007 increased $0.6 million over the prior year. Fourth quarter                        2007 revenues of $58.0 million increased 23.8 percent from the prior year                        and 2.1 percent sequentially. The increases, again, were from strong growth                        in video, data and wireless sales. |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

         

| **•** | Network access revenues for 2007 totaled $163.4 million, a                        decrease of 1.9 percent as compared to 2006. The decrease is primarily                        attributable to a 24 percent decrease in revenues from one network access                        carrier customer offset by increases in revenues from other carriers.                        Fourth quarter 2007 revenues of $38.8 million decreased 8.5 percent from                        the prior year and decreased 9.1 percent on a sequential basis. The annual                        and fourth quarter periods benefited from increases in data revenues. The                        sequential decrease from the third quarter is due to a seasonal decrease in                        voice traffic partially offset by higher data revenues. |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| **•** | Commercial revenues for 2007 totaled $104.6 million, a                        decrease of 1.2 percent from 2006. Fourth quarter 2007 revenues of $27.0                        million increased 6.8 percent from the prior year and decreased 1.0 percent                        on a sequential basis. Commercial revenues in the fourth quarter of 2007,                        driven primarily by increases in data revenues, more than offset the $9.5                        million in annualized revenue lost from a large customer as previously                        described in the second quarter of 2006. |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

         

| **•** | Consumer, network access and commercial local access lines                        totaled 120,100 at the end of the fourth quarter of 2007 representing an                        estimated 28 percent share of the total access lines market in Alaska.                        Access lines increased by 5,300 during the fourth quarter and increased by                        8,900 lines for the year. The increase is due, in part, to the continued                        roll out of new local services market areas and further penetration of                        GCI’s bundled offerings in existing markets. |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| **•** | GCI has provisioned 63,200 consumer and commercial access                        lines on its own facilities at the end of 2007, an increase of 23,400 lines                        over year end 2006 and an increase of 5,400 lines compared to the end of                        the third quarter of 2007. Approximately 55 percent of GCI’s total                        access lines were on its own facilities at the end of 2007 as compared to                        about 39 percent at the end of 2006. GCI’s avoided cost run rate for                        access lines switched to its own facilities is approximately $18.5 million                        at the end of 2007. |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| **•** | GCI had 96,500 consumer and commercial cable modem access                        customers at the end of the fourth quarter of 2007, an increase of 10,200                        over the fourth quarter of 2006 and 4,100 sequentially from the third                        quarter of 2007. Average monthly revenue per cable modem totaled $33.94 for                        the fourth quarter of 2007 as compared to $33.59 for the third quarter of                        2007, a sequential increase of more than 1 percent. |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| **•** | GCI had 77,300 wireless subscribers at the end of 2007, an                        increase of 4,000 subscribers from the third quarter of 2007. |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

 

| **•** | GCI expects the launch of the Intelsat Galaxy 18                        communications satellite on May 3, 2008. Galaxy 18 will replace the                        company’s existing transponder capacity on Galaxy XR when it reaches                        end of life on or about May 18, 2008. GCI will lease the new satellite over                        its expected 14 year life and the lease will be recorded as a fixed asset                        addition and capital lease obligation of $98.6 million. |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

| **•** | After the third quarter blackout period ended in early                        November, 2007 and before year end GCI repurchased 310,000 shares of its                        Class A Common stock at a cost of approximately $2.7 million or $8.77 per                        share. For the calendar year 2007, GCI purchased 1.25 million shares at a                        cost of approximately $15.1 million or $12.04 per share. The company is                        authorized to purchase an additional $16.1 million of its shares through                        the end of the first quarter of 2007, however, the company does not                        anticipate further share repurchases in the near term. GCI will likely                        curtail stock repurchases as a condition for increasing the availability                        under the company’s credit facilities. The commitments and approvals                        to increase the credit facilities are expected early in the second quarter                        of 2008. |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

 

**Consumer**

Consumer revenues for 2007 totaled $223.5 million, an improvement of 24.9        percent over 2006. Video, data and wireless revenues provided strong growth for        the

year,        and, as expected, voice revenues for the year 2007 increased $0.6 million over the prior        year. Fourth quarter 2007 revenues of $58.0 million increased 23.8 percent from the prior        year and 2.1 percent sequentially. The increases, again, were from strong growth in video,        data and wireless sales.

 

Consumer voice revenues totaled $46.2 million for the year 2007, an increase        of 1.3 percent over 2006. Fourth quarter 2007 voice revenues of $11.5 million represented        an increase of 2.9 percent compared to the prior year quarter and decreased 2.1 percent        when compared to the third quarter of 2007. The sequential decrease in voice revenue was        due to a change in the Universal Services Fund reimbursement rate that occurred at the        beginning of the fourth quarter. Growth in voice revenues for 2007 is primarily due to the        increase in customers taking voice services in existing and newly opened markets. GCI added        8,200 net local access lines by the end of 2007. Approximately 95 percent of local access        customers choose GCI to be their long distance provider.

         

Consumer long distance minutes for the year 2007 decreased 4.3 percent when        compared to 2006. Fourth quarter 2007 long distance minutes were relatively unchanged when        compared to the fourth quarter of 2006 and increased sequentially 4.8 percent over the        third quarter of 2007.

         

Consumer video revenue totaled $96.3 million in 2007, an increase of 6.8        percent over 2006. Fourth quarter 2007 video revenues of $25.0 million increased 6.6        percent from the prior year and 4.7 percent sequentially. The increase in revenue is due in        part to increases in subscribers and increases in video subscribers purchasing digital        service and renting high definition/digital video recorder converters. Basic consumer video        subscribers increased to 128,000, an increase of 4,000 subscribers or 3.2 percent for the        year 2007 and increased sequentially by 2,400 subscribers.

         

Consumer data revenue totaled $34.2 million in 2007, an increase of 16.4        percent compared to 2006. Fourth quarter 2007 data revenues of $9.3 million increased 19.9        percent over the prior year and 6.2 percent sequentially. The increase in consumer data        revenues is due to a strong increase in the number of cable modem customers as well as        increasing average revenue per cable modem. GCI added 9,500 consumer cable modem customers        over the prior year and 3,900 customers during the fourth quarter of 2007.

         

Consumer wireless revenues increased to $46.7 million, an increase of $33.0        million during 2007. The increase in wireless revenues is primarily due to an increase in        the number of wireless customers including those customers of the company’s wireless        subsidiary Alaska DigiTel.

 

**Network Access** 

Network access revenues for 2007 totaled $163.4 million, a decrease of 1.9        percent from 2006. The decrease is primarily attributable to a 24 percent decrease in        revenues from one network access carrier customer offset by increases in revenues from        other carriers. Fourth quarter 2007 revenues of $38.8 million decreased 8.5 percent from        the prior year and decreased 9.1 percent on a sequential basis.

         

Voice revenues for 2007 totaled $96.9 million, a decrease of 12.6 percent        compared to 2006. Fourth quarter 2007 voice revenues of $22.2 million decreased 17.0        percent from the prior year and decreased 14.2 percent sequentially. The annual        and

quarterly decrease in voice revenues is due in part to declining minutes,        rates per minute and a shift in carrier traffic by one of our carrier customers. The        decline in sequential revenues is due in part to seasonality.

         

Network access long distance minutes decreased 5.0 percent in 2007 from        2006. Fourth quarter 2007 long distance minutes decreased 8.6 percent from the fourth        quarter of 2006. The minute decrease for the year and for the fourth quarter was due        primarily to a shift in carrier traffic by one of our carrier customers as previously        noted. Minutes for the fourth quarter, as expected, decreased 8.0 percent when compared to        the third quarter of 2007.

         

Data revenues for 2007 totaled $61.2 million, an increase of 10.0 percent        compared to 2006. Fourth quarter 2007 revenue of $15.9 million increased 1.6 percent over        the prior year and 6.4 percent sequentially.

         

Wireless revenues totaled $5.3 million for 2007 and represent traffic        carried for roaming customers of our wireless subsidiary Alaska DigiTel.

         

**Commercial** 

Commercial revenues for 2007 totaled $104.6 million, a decrease of 1.2        percent from 2006. Fourth quarter 2007 revenues of $27.0 million increased 6.8 percent over        the prior year and decreased 1.0 percent on a sequential basis. Commercial revenues in the        fourth quarter of 2007, driven primarily by increases in data revenues, more than offset        the $9.5 million in annualized revenue lost from a large customer as previously described        in the second quarter of 2006.

         

Increases in video and wireless revenues were offset by decreases in voice        and data revenues when comparing 2007 to 2006. Increases in data and wireless revenues in        the fourth quarter of 2007 off set a decrease in voice and video revenues when compared to        the fourth quarter of 2006. GCI added 1,200 commercial local access lines for the year 2007        and added 400 access lines when compared to the third quarter of 2007.

 

Commercial long distance minutes for the year 2007 were relatively unchanged        from the year 2006. Fourth quarter 2007 long distance minutes were also relatively        unchanged when compared to the fourth quarter of 2006 and, as expected, decreased 8.4        percent sequentially when compared to the third quarter of 2007. Third quarter minutes are        typically the highest of the year due to seasonality.

 

**Managed Broadband**

Managed broadband revenues for 2007 totaled $28.8 million, an increase of        10.2 percent compared to 2006. Fourth quarter 2007 revenue of $7.5 million increased 9.6        percent over the prior year and 2.4 percent sequentially.

 

**Other Items**

Total        selling, general and administrative expenses (SG&A) for 2007 totaled $192.5 million an        increase of 12.1 percent as compared to 2006. Fourth quarter SG&A totaled $48.2        million, an increase of 4.7 percent from the fourth quarter of 2006, and a decrease of 1.8        percent as compared to the third quarter 2007. The increase in SG&A expense is        primarily due to the consolidation of Alaska DigiTel and increases in labor and benefits        costs. Excluding Alaska DigiTel and non-cash share based compensation costs,        SG&A

for 2007        increased 4.3 percent as compared to 2006, decreased 3.1 percent for the fourth quarter of        2007 as compared to the fourth quarter of 2006, and the fourth quarter of 2007 was        relatively unchanged from the third quarter of 2007.

 

During        2007, capital expenditures totaled $154.5 million as compared to $107.7 million in 2006.        GCI’s capital expenditures include those of Alaska DigiTel. The capital expenditures        for 2007 exceeded the expected range of $145 million to $150 million discussed in the third        quarter conference call.

 

GCI will hold a conference call to discuss its 2007 and fourth quarter        results on Friday, March 7, 2008 beginning at 2 p.m. (Eastern). To access the briefing on        March 7, dial 800-779-1507 (International callers should dial 210-234-0000) and identify        your call as “GCI.” In addition to the conference call, GCI will make available        net conferencing. To access the call via net conference, log on towww.gci.comand        follow the instructions. A replay of the call will be available for 72-hours by dialing        866-505-6378, access code 7461 (International callers should dial 203-369-1866.)

         

GCI is the largest telecommunications company in Alaska. A pioneer in        bundled services, GCI provides local, wireless, and long distance telephone, cable        television, Internet and data communication services throughout Alaska. More information        about the company can be found atwww.gci.com.

         

The foregoing contains forward-looking statements regarding the        company’s expected results that are based on management’s expectations as well        as on a number of assumptions concerning future events. Actual results might differ        materially from those projected in the forward looking statements due to uncertainties and        other factors, many of which are outside GCI’s control. Additional information        concerning factors that could cause actual results to differ materially from those in the        forward looking statements is contained in GCI’s cautionary statement sections of        Form 10-K and 10-Q filed with the Securities and Exchange Commission.

         

# #        #

 

| **GENERAL COMMUNICATION, INC. AND                        SUBSIDIARIES**          |
|----------------------------------------------------------------------------------|
| **CONSOLIDATED BALANCE SHEETS**                                                  |
|                                                                             |   |   |   |   |
|                                                                             |   | (Unaudited) |   |   |
| (Amounts in thousands)                                                           |   | December 31, |   | December 31, |
| Assets                                                                           |   | 2007 |   | 2006 |
|                                                                             |   |   |   |   |
| Current assets:                                                                  |   |   |   |   |
| Cash and cash equivalents                                                        |   | $    13,074 |   | 57,647 |
| Restricted cash                                                                  |   | - |   | 4,612 |
|                                                                             |   |   |   |   |
| Receivables                                                                      |   | 97,913 |   | 78,811 |
| Less allowance for doubtful receivables                                          |   | 1,657 |   | 2,922 |
| Net receivables                                                                  |   | 96,256 |   | 75,889 |
|                                                                             |   |   |   |   |
| Deferred income taxes                                                            |   | 5,734 |   | 20,685 |
| Prepaid expenses                                                                 |   | 5,356 |   | 5,729 |
| Inventories                                                                      |   | 2,541 |   | 3,362 |
| Notes receivable from related parties                                            |   | 31 |   | 1,080 |
| Property held for sale                                                           |   | - |   | 2,316 |
| Other current assets                                                             |   | 686 |   | 1,988 |
| Total current assets                                                             |   | 123,678 |   | 173,308 |
|                                                                             |   |   |   |   |
| Property and equipment in service, net of                        depreciation    |   | 502,426 |   | 454,879 |
| Construction in progress                                                         |   | 69,409 |   | 29,994 |
| Net property and equipment                                                       |   | 571,835 |   | 484,873 |
|                                                                             |   |   |   |   |
| Cable certificates                                                               |   | 191,565 |   | 191,565 |
| Goodwill                                                                         |   | 42,181 |   | 42,181 |
| Wireless licenses                                                                |   | 25,757 |   | 1,497 |
| Other intangible assets, net of amortization                                     |   | 11,769 |   | 7,011 |
| Deferred loan and senior notes costs, net of                        amortization |   | 6,202 |   | 7,091 |
| Other assets                                                                     |   | 9,399 |   | 7,133 |
| Total other assets                                                               |   | 286,873 |   | 256,478 |
| Total assets                                                                     |   | $   982,386 |   | 914,659 |
|                                                                             |   |   |   |   |
|                                                                             |   |   |   | (Continued) |

 

 

| **GENERAL COMMUNICATION, INC. AND                        SUBSIDIARIES**                                                                                                                                                                                                                                                                                                                                                           |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED BALANCE SHEETS**                                                                                                                                                                                                                                                                                                                                                                                                   |
| (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (Unaudited) |   |   |
| (Amounts in thousands)                                                                                                                                                                                                                                                                                                                                                                                                            |   | December 31, |   | December 31, |
| Liabilities, Minority Interest, and Stockholders'                        Equity                                                                                                                                                                                                                                                                                                                                                   |   | 2007 |   | 2006 |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Current maturities of obligations under long-term debt and                        capital leases                                                                                                                                                                                                                                                                                                                                  |   | $      2,375  |   | 1,792  |
| Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 35,747  |   | 28,404  |
| Deferred revenue                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 16,600  |   | 16,566  |
| Accrued payroll and payroll related obligations                                                                                                                                                                                                                                                                                                                                                                                   |   | 16,329  |   | 14,598  |
| Accrued interest                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 8,927  |   | 8,710  |
| Accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                               |   | 7,536  |   | 8,377  |
| Subscriber deposits                                                                                                                                                                                                                                                                                                                                                                                                               |   | 877  |   | 489  |
| Total current liabilities                                                                                                                                                                                                                                                                                                                                                                                                         |   | 88,391  |   | 78,936  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 536,115  |   | 487,737  |
| Obligations under capital leases, excluding current                        maturities                                                                                                                                                                                                                                                                                                                                             |   | 2,290  |   | 2,229  |
| Obligation under capital lease due to related party,                        excluding current  maturity                                                                                                                                                                                                                                                                                                                 |   | 469  |   | 561  |
| Deferred income taxes                                                                                                                                                                                                                                                                                                                                                                                                             |   | 83,481  |   | 86,998  |
| Other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 13,241  |   | 12,725  |
| Total liabilities                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 723,987  |   | 669,186  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Minority interest                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 6,478  |   | -  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Commitments and contingencies                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |
| Stockholders’ equity:                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |
| Common stock (no par):                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |
| Class A. Authorized 100,000 shares; issued 50,437 and                        50,191      shares at December 31,                        2007 and 2006, respectively;      outstanding 49,425 and                        49,804 shares at December 31, 2007 and      2006,                        respectively                            |   | 155,980  |   | 157,502  |
| Class B. Authorized 10,000 shares; issued 3,257 and 3,370                        shares at      December 31, 2007 and                        2006, respectively; outstanding      3,255 and 3,368 shares                        at December 31, 2007 and 2006, respectively;

convertible on a share-per-share basis into Class A common                        stock |   | 2,751  |   | 2,846  |
| Less cost of 473 and 258 Class A and Class B common shares                        held in       treasury at                        December 31, 2007 and 2006, respectively                                                                                                                                                                                                                    |   | (3,448) |   | (1,436) |
| Paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 20,132  |   | 20,641  |
| Notes receivable with related parties issued upon stock                        option exercise                                                                                                                                                                                                                                                                                                                                    |   | -  |   | (738) |
| Retained earnings                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 76,506  |   | 66,658  |
| Total stockholders' equity                                                                                                                                                                                                                                                                                                                                                                                                        |   | 251,921  |   | 245,473  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |
| Total liabilities, minority interest, and stockholders'                        equity                                                                                                                                                                                                                                                                                                                                             |   | $    982,386  |   | 914,659  |

 

 

| **GENERAL COMMUNICATION, INC. AND                        SUBSIDIARIES**                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **CONSOLIDATED INCOME STATEMENTS**                                                                                                                                              |
| **YEARS ENDED DECEMBER 31, 2007, 2006 AND                        2005**                                                                                                         |
|                                                                                                                                                                            |   |   |   |   |   |
|                                                                                                                                                                            | (Unaudited) |   |   |   |   |
| (Amounts in thousands, except per share amounts)                                                                                                                                | 2007 |   | 2006 |   | 2005 |
|                                                                                                                                                                            |   |   |   |   |   |
| Revenues                                                                                                                                                                        | $ 520,311 |   | 477,482 |   | 443,026 |
|                                                                                                                                                                            |   |   |   |   |   |
| Cost of goods sold (exclusive of depreciation and                        amortization shown  separately below)                                                        | 179,057 |   | 156,405 |   | 134,861 |
| Selling, general and administrative expenses                                                                                                                                    | 192,494 |   | 171,652 |   | 155,542 |
| Restructuring charge                                                                                                                                                            | - |   | - |   | 1,967 |
| Depreciation and amortization expense                                                                                                                                           | 86,327 |   | 82,099 |   | 74,126 |
| Operating income                                                                                                                                                                | 62,433 |   | 67,326 |   | 76,530 |
|                                                                                                                                                                            |   |   |   |   |   |
| Other income (expense):                                                                                                                                                         |   |   |   |   |   |
| Interest expense                                                                                                                                                                | (36,125) |   | (34,413) |   | (34,116) |
| Amortization and write-off of loan and senior notes                        fees                                                                                                 | (1,423) |   | (964) |   | (3,406) |
| Interest income                                                                                                                                                                 | 544 |   | 1,841 |   | 624 |
| Loss on termination of capital lease                                                                                                                                            | - |   | - |   | (2,797) |
| Other                                                                                                                                                                           | 36 |   | 463 |   | - |
| Other expense, net                                                                                                                                                              | (36,968) |   | (33,073) |   | (39,695) |
|                                                                                                                                                                            |   |   |   |   |   |
| Income before income tax expense and cumulative effect of a                        change in     accounting                        principle           | 25,465 |   | 34,253 |   | 36,835 |
|                                                                                                                                                                            |   |   |   |   |   |
| Income tax expense                                                                                                                                                              | 11,961 |   | 15,797 |   | 16,004 |
|                                                                                                                                                                            |   |   |   |   |   |
| Income before cumulative effect of a change in accounting                        principle                                                                                      | 13,504 |   | 18,456 |   | 20,831 |
|                                                                                                                                                                            |   |   |   |   |   |
| Cumulative effect of a change in accounting principle, net                        of income tax  expense of $44                                                       | - |   | 64 |   | - |
|                                                                                                                                                                            |   |   |   |   |   |
| Net income                                                                                                                                                                      | 13,504 |   | 18,520 |   | 20,831 |
| Excess of the price paid to redeem Series B redeemable                        preferred stock  over the carrying amount of the preferred                        stock | - |   | - |   | 2,358 |
| Preferred stock dividends                                                                                                                                                       | - |   | - |   | 148 |
| Net income available to common shareholders                                                                                                                                     | $ 13,504 |   | 18,520 |   | 18,325 |
|                                                                                                                                                                            |   |   |   |   |   |
| Basic net income available to common shareholders per common                        share:                                                                                      |   |   |   |   |   |
| Income available to common shareholders before cumulative                        effect    of a change in accounting                        principle       | $ 0.26 |   | 0.34 |   | 0.34 |
| Cumulative effect of a change in accounting                        principle                                                                                                    | - |   | - |   | - |
| Net income available to common shareholders                                                                                                                                     | $ 0.26 |   | 0.34 |   | 0.34 |
|                                                                                                                                                                            |   |   |   |   |   |
| Diluted net income available to common shareholders per                        common share:                                                                                    |   |   |   |   |   |

| Income available to common shareholders before cumulative                        effect    of a change in accounting                        principle | $ 0.22 |   | 0.33   |   | 0.33   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Cumulative effect of a change in accounting                        principle                                                                                              | -      |   | -      |   | -      |
| Net income available to common shareholders                                                                                                                               | $ 0.22 |   | 0.33   |   | 0.33   |
|                                                                                                                                                                      |   |   |   |   |   |
| Common shares used to calculate basic EPS                                                                                                                                 | 52,951 |   | 53,777 |   | 54,684 |
|                                                                                                                                                                      |   |   |   |   |   |
| Common shares used to calculate diluted EPS                                                                                                                               | 54,581 |   | 55,325 |   | 55,874 |

 

 

| **GENERAL COMMUNICATION, INC. AND                        SUBSIDIARIES** |
|-------------------------------------------------------------------------|
| **SUPPLEMENTAL SCHEDULES**                                              |
| **(Unaudited)**                                                         |
| (Amounts in thousands)                                                  |   |   |   |   |   |   |   |   |   |   |
|                                                                    | Fourth Quarter 2007 |   | Fourth Quarter 2006 |
|                                                                    |   | Network |   | Managed |   |   |   | Network |   | Managed |   |
|                                                                    | Consumer | Access | Commercial | Broadband | Totals |   | Consumer | Access | Commercial | Broadband | Totals |
| Revenues                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Voice                                                                   | $ 11,501 | 22,192 | 7,021 | - | 40,714 |   | 11,182 | 26,734 | 7,838 | - | 45,754 |
| Video                                                                   | 24,955 | - | 2,100 | - | 27,055 |   | 23,410 | - | 2,212 | - | 25,622 |
| Data                                                                    | 9,278 | 15,882 | 16,576 | 7,549 | 49,285 |   | 7,737 | 15,638 | 14,443 | 6,888 | 44,706 |
| Wireless                                                                | 12,242 | 704 | 1,300 | - | 14,246 |   | 4,493 | - | 784 | - | 5,277 |
| Total                                                                   | 57,976 | 38,778 | 26,997 | 7,549 | 131,300 |   | 46,822 | 42,372 | 25,277 | 6,888 | 121,359 |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods  sold                                           | 19,440 | 10,841 | 14,070 | 1,477 | 45,828 |   | 17,409 | 9,824 | 11,938 | 1,169 | 40,340 |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Contribution                                                            | 38,536 | 27,937 | 12,927 | 6,072 | 85,472 |   | 29,413 | 32,548 | 13,339 | 5,719 | 81,019 |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Less SG&A                                                           | 24,103 | 11,242 | 9,541 | 3,285 | 48,171 |   | 21,886 | 11,496 | 10,124 | 2,507 | 46,013 |
| Add other  income                                             | 4 | 4 | 2 | - | 10 |   | - | - | - | 113 | 113 |
| EBITDA                                                                  | 14,437 | 16,699 | 3,388 | 2,787 | 37,311 |   | 7,527 | 21,052 | 3,215 | 3,325 | 35,119 |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Add share-

based  compensation                               | 518 | 531 | 288 | 117 | 1,454 |   | 593 | 855 | 368 | 139 | 1,955 |
| EBITDAS                                                                 | $ 14,955 | 17,230 | 3,676 | 2,904 | 38,765 |   | 8,120 | 21,907 | 3,583 | 3,464 | 37,074 |
|                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

 

 

|                                                                    |                |    |                            |      |    |   |     |    |       |      |    |
|-------------------------------------------------------------------------|---------------------|---------|---------------------------------|-----------|---------|--------|----------|---------|------------|-----------|---------|
| **GENERAL COMMUNICATION, INC. AND                        SUBSIDIARIES** |
| **SUPPLEMENTAL SCHEDULES**                                              |
| **(Unaudited)**                                                         |
| (Amounts in thousands)                                                  |                |    |                            |      |    |   |     |    |       |      |
|                                                                    | Fourth Quarter 2007 |    | Third Quarter 2007 (as amended) |
|                                                                    |                | Network |                            | Managed   |    |   |     | Network |       | Managed   |    |
|                                                                    | Consumer            | Access  | Commercial                      | Broadband | Totals  |   | Consumer | Access  | Commercial | Broadband | Totals  |
| Revenues                                                                |                |    |                            |      |    |   |     |    |       |      |    |
| Voice                                                                   | $ 11,501            | 22,192  | 7,021                           | -         | 40,714  |   | 11,750   | 25,856  | 7,838      | -         | 45,444  |
| Video                                                                   | 24,955              | -       | 2,100                           | -         | 27,055  |   | 23,834   | -       | 2,148      | -         | 25,982  |
| Data                                                                    | 9,278               | 15,882  | 16,576                          | 7,549     | 49,285  |   | 8,736    | 14,920  | 15,961     | 7,369     | 46,986  |
| Wireless                                                                | 12,242              | 704     | 1,300                           | -         | 14,246  |   | 12,475   | 1,881   | 1,322      | -         | 15,678  |
| Total                                                                   | 57,976              | 38,778  | 26,997                          | 7,549     | 131,300 |   | 56,795   | 42,657  | 27,269     | 7,369     | 134,090 |
|                                                                    |                |    |                            |      |    |   |     |    |       |      |    |
| Cost of goods  sold                                           | 19,440              | 10,841  | 14,070                          | 1,477     | 45,828  |   | 21,302   | 11,554  | 13,352     | 1,670     | 47,878  |
|                                                                    |                |    |                            |      |    |   |     |    |       |      |    |
| Contribution                                                            | 38,536              | 27,937  | 12,927                          | 6,072     | 85,472  |   | 35,493   | 31,103  | 13,917     | 5,699     | 86,212  |
|                                                                    |                |    |                            |      |    |   |     |    |       |      |    |
| Less SG&A                                                           | 24,103              | 11,242  | 9,541                           | 3,285     | 48,171  |   | 24,804   | 10,958  | 9,719      | 3,589     | 49,070  |
| Add other  income                                             | 4                   | 4       | 2                               | -         | 10      |   | 14       | 16      | 7          | -         | 37      |
| EBITDA                                                                  | 14,437              | 16,699  | 3,388                           | 2,787     | 37,311  |   | 10,703   | 20,161  | 4,205      | 2,110     | 37,179  |
|                                                                    |                |    |                            |      |    |   |     |    |       |      |    |
| Add share-

based  compensation                               | 518                 | 531     | 288                             | 117       | 1,454   |   | 604      | 629     | 371        | 138       | 1,742   |
| EBITDAS                                                                 | $ 14,955            | 17,230  | 3,676                           | 2,904     | 38,765  |   | 11,307   | 20,790  | 4,576      | 2,248     | 38,921  |

 

 

| **GENERAL COMMUNICATION, INC. AND                        SUBSIDIARIES** |
|-------------------------------------------------------------------------|
| **SUPPLEMENTAL SCHEDULES**                                              |
| **(Unaudited)**                                                         |
| (Amounts in thousands)                                                  |   |   |   |   |   |   |   |   |   |   |
|                                                                    | Twelve Months Ended December 31, 2007 |   | Twelve Months Ended December 31, 2006 |
|                                                                    |   | Network |   | Managed |   |   |   | Network |   | Managed |   |
|                                                                    | Consumer | Access | Commercial | Broadband | Totals |   | Consumer | Access | Commercial | Broadband | Totals |
| Revenues                                                                |   |   |   |   |   |   |   |   |   |   |   |
| Voice                                                                   | $ 46,212 | 96,896 | 30,761 | - | 173,869 |   | 45,625 | 110,834 | 32,162 | - | 188,621 |
| Video                                                                   | 96,327 | - | 8,018 | - | 104,345 |   | 90,226 | - | 7,993 | - | 98,219 |
| Data                                                                    | 34,230 | 61,199 | 61,052 | 28,792 | 185,273 |   | 29,406 | 55,637 | 63,276 | 26,131 | 174,450 |
| Wireless                                                                | 46,733 | 5,282 | 4,809 | - | 56,824 |   | 13,694 | - | 2,498 | - | 16,192 |
| Total                                                                   | 223,502 | 163,377 | 104,640 | 28,792 | 520,311 |   | 178,951 | 166,471 | 105,929 | 26,131 | 477,482 |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods  sold                                           | 81,877 | 40,593 | 50,559 | 6,028 | 179,057 |   | 66,889 | 37,280 | 47,869 | 4,367 | 156,405 |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Contribution                                                            | 141,625 | 122,784 | 54,081 | 22,764 | 341,254 |   | 112,062 | 129,191 | 58,060 | 21,764 | 321,077 |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Less SG&A                                                           | 95,808 | 44,182 | 38,655 | 13,849 | 192,494 |   | 80,750 | 40,268 | 38,169 | 12,465 | 171,652 |
| Add other  income                                             | 14 | 15 | 7 | - | 36 |   | - | - | - | 463 | 463 |
| EBITDA                                                                  | 45,831 | 78,617 | 15,433 | 8,915 | 148,796 |   | 31,312 | 88,923 | 19,891 | 9,762 | 149,888 |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Add share-

based  compensation                               | 1,720 | 1,744 | 1,071 | 409 | 4,944 |   | 2,081 | 2,478 | 1,337 | 469 | 6,365 |
| EBITDAS                                                                 | $ 47,551 | 80,361 | 16,504 | 9,324 | 153,740 |   | 33,393 | 91,401 | 21,228 | 10,231 | 156,253 |

 

 

| **GENERAL COMMUNICATION, INC. AND                        SUBSIDIARIES** |
|-------------------------------------------------------------------------|
| **KEY PERFORMANCE INDICATORS**                                          |
| **(Unaudited)**                                                         |
|                                                                    |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   | December 31, 2007 |   | December 31, 2007 |
|                                                                    |   |   |   |   |   | as compared to |   | as compared to |
|                                                                    |   | December 31, | December 31, | September 30, |   | December 31, | September 30, |   | December 31, | September 30, |
|                                                                    |   | 2007 | 2006 | 2007 |   | 2006 | 2007 |   | 2006 | 2007 |
| **Consumer**                                                            |   |   |   |   |   |   |   |   |   |
| Voice                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                    | Long-distance subscribers | 89,900 | 89,800 | 89,700 |   | 100 | 200 |   | 0.1% | 0.2% |
|                                                                    | Total local access lines in service | 74,400 | 66,200 | 69,500 |   | 8,200 | 4,900 |   | 12.4% | 7.1% |
|                                                                    | Local access lines in service on GCI                          facilities | 50,700 | 31,400 | 45,900 |   | 19,300 | 4,800 |   | 61.5% | 10.5% |
|                                                                    |   |   |   |   |   |   |   |   |   |   |
| Video                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                    | Basic subscribers | 128,000 | 124,000 | 125,600 |   | 4,000 | 2,400 |   | 3.2% | 1.9% |
|                                                                    | Digital programming tier subscribers | 65,800 | 58,700 | 62,600 |   | 7,100 | 3,200 |   | 12.1% | 5.1% |
|                                                                    | HD/DVR converter boxes | 50,200 | 29,200 | 43,600 |   | 21,000 | 6,600 |   | 71.9% | 15.1% |
|                                                                    | Homes passed | 224,700 | 219,900 | 222,100 |   | 4,800 | 2,600 |   | 2.2% | 1.2% |
|                                                                    |   |   |   |   |   |   |   |   |   |   |
| Data                                                                    |   |   |   |   |   |   |   |   |   |
|                                                                    | Cable modem subscribers | 88,000 | 78,500 | 84,100 |   | 9,500 | 3,900 |   | 12.1% | 4.6% |
|                                                                    |   |   |   |   |   |   |   |   |   |   |
| Wireless                                                                |   |   |   |   |   |   |   |   |   |
|                                                                    | Wireless lines in service | 70,000 | 24,400 | 66,100 |   | 45,600 | 3,900 |   | 186.9% | 5.9% |
|                                                                    |   |   |   |   |   |   |   |   |   |   |
| **Network Access Services**                                             |   |   |   |   |   |   |   |   |   |
| Data:                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                    | Total ISP access lines in service | 2,600 | 3,100 | 2,600 |   | (500) | - |   | -16.1% | 0.0% |
|                                                                    |   |   |   |   |   |   |   |   |   |   |
| **Commercial**                                                          |   |   |   |   |   |   |   |   |   |
| Voice:                                                                  |   |   |   |   |   |   |   |   |   |
|                                                                    | Long-distance subscribers | 10,500 | 11,100 | 10,800 |   | (600) | (300) |   | -5.4% | -2.8% |
|                                                                    | Total local access lines in service | 43,100 | 41,900 | 42,700 |   | 1,200 | 400 |   | 2.9% | 0.9% |
|                                                                    | Local access lines in service on GCI                          facilities | 12,500 | 8,400 | 11,900 |   | 4,100 | 600 |   | 48.8% | 5.0% |
|                                                                    |   |   |   |   |   |   |   |   |   |   |
| Video                                                                   |   |   |   |   |   |   |   |   |   |
|                                                                    | Hotels and mini-headend  subscribers | 13,400 | 13,300 | 15,200 |   | 100 | (1,800) |   | 0.8% | -11.8% |
|                                                                    | Basic subscribers | 1,900 | 1,900 | 1,900 |   | - | - |   | 0.0% | 0.0% |
|                                                                    | Total basic subscribers | 15,300 | 15,200 | 17,100 |   | 100 | (1,800) |   | 0.7% | -10.5% |
|                                                                    |   |   |   |   |   |   |   |   |   |   |
| Data                                                                    |   |   |   |   |   |   |   |   |   |
|                                                                    | Cable modem subscribers | 8,500 | 7,800 | 8,300 |   | 700 | 200 |   | 9.0% | 2.4% |
|                                                                    |   |   |   |   |   |   |   |   |   |   |
| Wireless                                                                |   |   |   |   |   |   |   |   |   |
|                                                                    | Wireless lines in service | 7,300 | 4,600 | 7,200 |   | 2,700 | 100 |   | 58.7% | 1.4% |
|                                                                    |   |   |   |   |   |   |   |   |   |   |
| **Broadband**                                                           |   |   |   |   |   |   |   |   |   |
|                                                                    | SchoolAccess® customers | 51 | 48 | 51 |   | 3 | - |   | 6.3% | 0.0% |

|                        | ConnectMD® customers                                | 21                  | 21           | 21             |              | -                           | -                 |         | 0.0%                        | 0.0%          |
|-----------------------------|---------------------------------------------------------|---------------------|--------------|----------------|-------------------|-----------------------------|-------------------|--------------|-----------------------------|---------------|
|                        |                                                    |                |         |           |              |                        |              |         |                        |          |
|                        |                                                    |                |         |           | December 31, 2007 |                        | December 31, 2007 |
|                        |                                                    | Three Months Ended  |         | as Compared to |              | as Compared to              |
|                        |                                                    | December 31,        | December 31, | September 30,  |              | December 31,                | September 30,     |         | December 31,                | September 30, |
|                        |                                                    | 2007                | 2006         | 2007           |              | 2006                        | 2007              |         | 2006                        | 2007          |
| **Consumer**                |                                                    |                |         |           |              |                        |              |         |                        |
| Voice                       |                                                    |                |         |           |              |                        |              |         |                        |
|                        | Long-distance minutes carried  (in millions)  | 34.8                | 35.0         | 33.2           |              | (0.2)                       | 1.6               |         | -0.6%                       | 4.8%          |
|                        |                                                    |                |         |           |              |                        |              |         |                        |          |
| Video                       |                                                    |                |         |           |              |                        |              |         |                        |
|                        | Average monthly gross revenue per  subscriber | $ 65.44             | $ 63.44      | $ 63.44        |              | $ 2.00                      | $ 2.00            |         | 3.2%                        | 3.2%          |
|                        |                                                    |                |         |           |              |                        |              |         |                        |          |
| Wireless                    |                                                    |                |         |           |              |                        |              |         |                        |
|                        | Average monthly gross revenue per  subscriber | $ 59.18             | $ 60.32      | $ 58.25        |              | $ (1.14)                    | $ 0.93            |         | -1.9%                       | 1.6%          |
|                        |                                                    |                |         |           |              |                        |              |         |                        |          |
| **Network Access Services** |                                                    |                |         |           |              |                        |              |         |                        |
| Voice                       |                                                    |                |         |           |              |                        |              |         |                        |
|                        | Long-distance minutes carried  (in millions)  | 295.6               | 323.4        | 321.4          |              | (27.8)                      | (25.8)            |         | -8.6%                       | -8.0%         |
|                        |                                                    |                |         |           |              |                        |              |         |                        |          |
| **Commercial**              |                                                    |                |         |           |              |                        |              |         |                        |
| Voice:                      |                                                    |                |         |           |              |                        |              |         |                        |
|                        | Long-distance minutes carried  (in millions)  | 30.7                | 30.8         | 33.5           |              | (0.1)                       | (2.8)             |         | -0.3%                       | -8.4%         |
|                        |                                                    |                |         |           |              |                        |              |         |                        |          |
| **Total**                   |                                                    |                |         |           |              |                        |              |         |                        |
|                        | Long-distance minutes carried  (in millions)  | 361.1               | 389.2        | 388.1          |              | (28.1)                      | (27.0)            |         | -7.2%                       | -7.0%         |
|                        |                                                    |                |         |           |              |                        |              |         |                        |          |
|                        |                                                    |                |         |           | December 31,      |                        |              | December 31, |                        |
|                        |                                                    | Twelve Months Ended |         |           | 2007              |                        |              | 2007         |                        |
|                        |                                                    | December 31,        | December 31, |           |              | as Compared to December 31, |              |         | as Compared to December 31, |          |
|                        |                                                    | 2007                | 2006         |           |              | 2006                        |              |         | 2006                        |          |
| **Consumer**                |                                                    |                |         |           |              |                        |              |         |                        |
| Voice                       |                                                    |                |         |           |              |                        |              |         |                        |
|                        | Long-distance minutes carried  (in millions)  | 135.8               | 141.9        |           |              | (6.1)                       |              |         | -4.3%                       |          |
|                        |                                                    |                |         |           |              |                        |              |         |                        |          |
| **Network Access Services** |                                                    |                |         |           |              |                        |              |         |                        |
| Voice                       |                                                    |                |         |           |              |                        |              |         |                        |
|                        | Long-distance minutes carried  (in millions)  | 1,250.6             | 1,316.6      |           |              | (66.0)                      |              |         | -5.0%                       |          |
|                        |                                                    |                |         |           |              |                        |              |         |                        |          |
| **Commercial**              |                                                    |                |         |           |              |                        |              |         |                        |
| Voice:                      |                                                    |                |         |           |              |                        |              |         |                        |

|      | Long-distance minutes carried  (in millions) | 131.3   | 131.8   |   |   | (0.5)  |   |   | -0.4%  |   |
|-----------|--------------------------------------------------------|---------|---------|--------|--------|--------|--------|--------|--------|--------|
|      |                                                   |    |    |   |   |   |   |   |   |   |
| **Total** |                                                   |    |    |   |   |   |   |   |   |
|      | Long-distance minutes carried  (in millions) | 1,517.7 | 1,590.3 |   |   | (72.6) |   |   | -4.6%  |   |

 

**General        Communication, Inc.**

**Non-GAAP        Financial Reconciliation Schedule**

(Unaudited,        Amounts in Millions)

 

|                                                                            |      | Three Months Ended |
|---------------------------------------------------------------------------------|-----------|--------------------|
|  

                                                                   |      | December 31,2007   |   | December 31,2006 |   | September 30,

2007 (as amended) |
| Net income available to common shareholders                                     |  

$ | 3.8                |   | 3.1 |   | 2.3 |
| Income tax expense                                                              |      | 3.5                |   | 2.6 |   | 2.4 |
| Income before income tax expense                                                |      | 7.3                |   | 5.7 |   | 4.7 |
|                                                                            |      |               |   |   |   |   |
| Other (income) expense:                                                         |      |               |   |   |   |   |
| Interest expense                                                                |      | 9.4                |   | 8.2 |   | 9.0 |
| Amortization and write-off of loan and senior notes                        fees |      | 0.3                |   | 0.2 |   | 0.8 |
| Interest income                                                                 |      | (0.1)              |   | (0.4) |   | (0.1) |
| Other                                                                           |      | ---                |   | (0.1) |   | --- |
| Other expense, net                                                              |      | 9.6                |   | 7.9 |   | 9.7 |
|                                                                            |      |               |   |   |   |   |
| Operating income                                                                |      | 16.9          |   | 13.6  |   | 14.4  |
| Depreciation and amortization expense                                           |      | 20.4          |   | 21.4  |   | 22.8  |
| Other                                                                           |      | ---                |   | 0.1 |   | --- |
|                                                                            |      |               |   |   |   |   |
| EBITDA (Note 2)                                                                 |      | 37.3          |   | 35.1  |   | 37.2 |
| Share-based compensation expense                                                |      | 1.5                |   | 2.0 |   | 1.7 |
| EBITDAS (Note 1)                                                                | $         | 38.8          |   | 37.1  |   | 38.9  |

 

|                                                                                                              |      | Year Ended        |
|-------------------------------------------------------------------------------------------------------------------|-----------|-------------------|
|  

                                                                                                     |      | December 31,2007  |   | December 31,2006 |
| Net income available to common shareholders                                                                       |  

$ | 13.5         |   | 18.5  |
| Cumulative effect of a change in accounting principle, net                        of income tax expense           |      | ---               |   | (0.1) |
| Income before income tax expense                                                                                  |      | 13.5         |   | 18.4  |
| Income tax expense                                                                                                |      | 12.0         |   | 15.8  |
| Income before income tax expense and cumulative effect of a                        change in accounting principle |      | 25.5         |   | 34.2  |
|                                                                                                              |      |              |   |   |
| Other (income) expense:                                                                                           |      |              |   |   |
| Interest expense                                                                                                  |      | 36.1         |   | 34.4  |
| Amortization and write-off of loan and senior notes                        fees                                   |      | 1.4               |   | 1.0 |
| Interest income                                                                                                   |      | (0.5)             |   | (1.8) |
| Other                                                                                                             |      | ---               |   | (0.5) |
| Other expense, net                                                                                                |      | 37.0         |   | 33.1  |
|                                                                                                              |      |              |   |   |
| Operating income                                                                                                  |      | 62.5         |   | 67.3  |
| Depreciation and amortization expense                                                                             |      | 86.3         |   | 82.1  |
| Other                                                                                                             |      | ---               |   | 0.5 |
|                                                                                                              |      |              |   |   |
| EBITDA (Note 2)                                                                                                   |      | 148.8   |   | 149.9   |
| Share-based compensation expense                                                                                  |      | 4.9               |   | 6.4 |
| EBITDAS (Note 1)                                                                                                  | $         | 153.7   |   | 156.3   |

 

Notes:

(1) EBITDA (as defined in Note 2 below) before deducting share-based        compensation expense.

         

(2) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)        is the sum of Net Income, Interest Expense, Amortization and Write-off of Loan and Senior        Notes Fees, Interest Income, Income Tax Expense, and Depreciation and Amortization Expense.        EBITDA is not presented as an alternative measure of net income, operating income or cash        flow from operations, as determined in accordance with accounting principles generally        accepted in the United States of America. GCI's management uses EBITDA to evaluate the        operating performance of its business, and as a measure of performance for incentive        compensation purposes. GCI believes EBITDA is a measure used as an analytical indicator of        income generated to service debt and fund capital expenditures. In addition, multiples of        current or projected EBITDA are used to estimate current or prospective enterprise value.        EBITDA does not give effect to cash used for debt service requirements, and thus does not        reflect funds available for investment or otherdiscretionary uses.        EBITDA as presented herein may not be comparable to similarly titled measures reported by        other companies.