----

|   | GENERAL COMMUNICATION, INC.                            |   |
|--------|--------------------------------------------------------|--------|
|   | (Exact name of registrant as specified in its charter) |   |

|   | State of Alaska                 |   | 92-0072737          |   |
|--------|---------------------------------|--------|---------------------|--------|
|   | (State or other jurisdiction of |   | (I.R.S Employer     |   |
|   | incorporation or organization)  |   | Identification No.) |   |

|   | 2550 Denali Street                       |   |       |   |
|--------|------------------------------------------|--------|------------|--------|
|   | Suite 1000                               |   |       |   |
|   | Anchorage, Alaska                        |   | 99503      |   |
|   | (Address of principal executive offices) |   | (Zip Code) |   |

|   | Class A common stock |   | Class B common stock |   |
|--------|----------------------|--------|----------------------|--------|
|   | (Title of class)     |   | (Title of class)     |   |

----

| Large accelerated filer o                                             | Accelerated filer x         |
|-----------------------------------------------------------------------|-----------------------------|
| Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |

----

|                                                                     |     |                                                                                                                   |   |   | Page No. |
|--------------------------------------------------------------------------|----------|------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|
|                                                                     |     |                                                                                                                   |   |   |     |
| Cautionary Statement Regarding Forward-Looking Statements                | 4        |
|                                                                     |     |                                                                                                                   |   |   |     |
| Part I                                                                   |     |
|                                                                     | Item I.  | Business                                                                                                               |   |   | 4        |
|                                                                     | Item IA. | Risk Factors                                                                                                           |   |   | 27       |
|                                                                     | Item IB. | Unresolved Staff Comments                                                                                              |   |   | 32       |
|                                                                     | Item 2.  | Properties                                                                                                             |   |   | 33       |
|                                                                     | Item 3.  | Legal Proceedings                                                                                                      |   |   | 33       |
|                                                                     | Item 4.  | (Removed and Reserved)                                                                                                 |   |   | 33       |
|                                                                     |     |                                                                                                                   |   |   |     |
| Part II                                                                  |     |                                                                                                                   |   |   |     |
|                                                                     | Item 5.  | Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |   |   | 34       |
|                                                                     | Item 6.  | Selected Financial Data                                                                                                |   |   | 37       |
|                                                                     | Item 7.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations                            |   |   | 37       |
|                                                                     | Item 7A. | Quantitative and Qualitative Disclosures About Market Risk                                                             |   |   | 62       |
|                                                                     | Item 8.  | Consolidated Financial Statements and Supplementary Data                                                               |   |   | 62       |
|                                                                     | Item 9.  | Changes In and Disagreements With Accountants on Accounting and Financial Disclosure                                   |   |   | 62       |
|                                                                     | Item 9A. | Controls and Procedures                                                                                                |   |   | 62       |
|                                                                     | Item 9B. | Other Information                                                                                                      |   |   | 64       |
|                                                                     |     |                                                                                                                   |   |   |     |
| Part III                                                                 |     |                                                                                                                   |   |
|                                                                     | Item 10. | Directors, Executive Officers and Corporate Governance                                                                 |   |   | 64       |
|                                                                     | Item 11. | Executive Compensation                                                                                                 |   |   | 69       |
|                                                                     | Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                         |   |   | 91       |
|                                                                     | Item 13. | Certain Relationships and Related Transactions, and Director Independence                                              |   |   | 94       |
|                                                                     | Item 14. | Principal Accountant Fees and Services                                                                                 |   |   | 97       |
|                                                                     |     |                                                                                                                   |   |   |     |
| Part IV                                                                  |     |                                                                                                                   |   |
| Item 15.  Exhibits, Consolidated Financial Statement Schedules |     |                                                                                                                   | 100    |
|                                                                     |     |                                                                                                                   |   |
| SIGNATURES                                                          |     |                                                                                                                   | 158    |

----

----

----

| Expand Our Product Portfolio and Footprint in Alaska. Throughout our history, we have successfully added and expect to continue to add new products to our product portfolio. We have a demonstrated history of new product evaluation, development and deployment for our customers, and we continue to assess revenue-enhancing opportunities that create value for our customers. In addition to new services such as additional high definition television ("HDTV") channels, video-on-demand, on-line advertising placement, on-line content delivery such as streaming music, and mobile high speed data, we are also expanding the reach of our core products to new markets. Where feasible and where economic analysis supports geographic expansion of our network coverage, we are currently pursuing or expect to pursue opportunities to increase the scale of our facilities, enhance our ability to serve our existing customers’ needs and attract new customers. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Make Strategic Acquisitions.  We have a history of making and integrating acquisitions of in-state telecommunications providers. In 2008, we completed three acquisitions of telecommunications providers in various Alaska communities. Our management team is adept at sourcing, acquiring and integrating these acquired companies, and we will continue to actively pursue and buy companies that we believe fit with our strategy and networks and that enhance earnings. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                  |                       | Reportable Segments |
|-----------------------|----------------------------|---------------------|
| Services and Products | Consumer                   | Network Access      | Commercial | Managed Broadband | Regulated Operations |
| Voice:                |                       |                |   |   |   |
|                  | Long-distance              | X                   | X | X |   | X |
|                  | Local Access               | X                   | X | X |   | X |
|                  |                       |                |   |   |   |   |
| Video                 | X                          |                | X |   |   |
|                  |                       |                |   |   |   |   |
| Data:                 |                       |                |   |   |   |
|                  | Internet                   | X                   | X | X | X | X |
|                  | Data Networks              |                | X | X | X |   |
|                  | Managed Services           |                |   | X | X |   |
|                  | Managed Broadband Services |                |   |   | X |   |
|                  |                       |                |   |   |   |   |
| Wireless              | X                          | X                   | X |   |   |

|                             |   | Year Ended December 31, |    |
|----------------------------------|--------|-------------------------|---------|
|                             |   | 2010                    |    |   | 2009 |   |   | 2008 |   |
| Total Consumer segment revenues1 |   | $                       | 342,898 |   |   |   | 294,925 |   |   |   | 255,632 |   |

----

----

| ·   | Alaska United East was placed into service in 1999 and connects Whittier, Valdez and Juneau, Alaska and Seattle, Washington, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | Alaska United West was placed into service in 2004 and connects Seward, Alaska to Warrenton, Oregon, and |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | Alaska United Southeast was placed into service in 2008 and connects Ketchikan, Wrangell, Petersburg, Angoon and Sitka, Alaska to Alaska United West and Alaska United East. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | Our Anchorage facilities are connected to multiple Internet access points in Seattle through multiple, diversely routed networks; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | We use multiple routers on each end of the circuits to control the flow of data and to provide resiliency; and |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | Our Anchorage facility consists of routers, a bank of servers that perform support and application functions, database servers providing authentication and user demographic data, layer 2 gigabit switch networks for intercommunications and broadband services. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                   |   | Year Ended December 31, |    |
|----------------------------------------|--------|-------------------------|---------|
|                                   |   | 2010                    |    |   | 2009 |   |   | 2008 |   |
| Total Network Access segment revenues1 |   | $                       | 107,227 |   |   |   | 122,072 |   |   |   | 153,821 |   |

----

|                               |   | Year Ended December 31, |    |
|------------------------------------|--------|-------------------------|---------|
|                               |   | 2010                    |    |   | 2009 |   |   | 2008 |   |
| Total Commercial segment revenues1 |   | $                       | 128,458 |   |   |   | 110,135 |   |   |   | 114,660 |   |

----

----

|                                      |   | Year Ended December 31, |   |
|-------------------------------------------|--------|-------------------------|--------|
|                                      |   | 2010                    |   |   | 2009 |   |   | 2008 |   |
| Total Managed Broadband segment revenues1 |   | $                       | 49,962 |   |   |   | 44,875 |   |   |   | 37,047 |   |

----

----

| ·   | In communities where we have terrestrial interconnects or provide existing service over regional earth stations, we have configured intermediate distribution facilities. Schools that are within these service boundaries are connected locally to one of those facilities; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In communities where we have extended communications services via our DAMA earth station program, SchoolAccess® is provided via a satellite circuit to an intermediate distribution facility at the Eagle River earth station; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In communities or remote locations to which we have not extended communications services, SchoolAccess® is provided via a dedicated (usually on premise) very small aperture terminal ("VSAT") satellite station. The VSAT connects to an intermediate distribution facility located in Anchorage. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Two licenses for use of a 30 MHz block of spectrum, which together authorize provision of PCS services in Alaska. Both licenses have an expiration date of June 23, 2015.  Licenses may be revoked and license renewal applications may be denied for cause. We expect the PCS licenses will be renewed in due course when, at the end of the license period, a renewal application will be filed, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A LMDS license which we acquired in 1998 for use of a 150 MHz block of spectrum in the 28 GHz Ka-band for providing wireless services. The LMDS license was renewed in 2008 for an additional 10-year term, following the grant of an extension until June 1, 2012 of the requirement to provide “substantial service” in the service region, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 25 MHz cellular A license for sites located in the Bethel AK-2 B2 portion of RSA 316, serving the Aleutians West Census Area, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Several 25 MHz cellular B licenses are held by our subsidiary Unicom for sites located in the Wade Hampton AK-1 portion of CMA 315 and the Bethel AK-2 portion of CMA 316, throughout the Yukon-Kuskokwim Delta. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

| ·   | 42% are located in the Municipality of Anchorage, |
|--------------------|---------------------------------------------------|

| ·   | 14% are located in the Fairbanks North Star Borough, |
|--------------------|------------------------------------------------------|

| ·   | 12% are located in the Matanuska-Susitna Borough, |
|--------------------|---------------------------------------------------|

| ·   | 8% are located in the Kenai Peninsula Borough, |
|--------------------|------------------------------------------------|

| ·   | 4% are located in the City and Borough of Juneau, and |
|--------------------|-------------------------------------------------------|

| ·   | The remaining 20% are located in other communities across the State of Alaska. |
|--------------------|--------------------------------------------------------------------------------|

----

| ·   | How radio spectrum is used by licensees; |
|--------------------|------------------------------------------|

| ·   | The nature of the services that licensees may offer and how such services may be offered; and |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | Resolution of issues of interference between spectrum bands. |
|--------------------|--------------------------------------------------------------|

----

----

----

----

| ·   | Use of a large portion of our cash flow to pay principal and interest on our Senior Notes and our other debt, which will reduce the availability of our cash flow to fund working capital, capital expenditures, research and development expenditures and other business activities; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increase our vulnerability to general adverse economic and industry conditions; |
|--------------------|---------------------------------------------------------------------------------|

| ·   | Limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | Restrict us from making strategic acquisitions or exploiting business opportunities; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | Make it more difficult for us to satisfy our obligations with respect to the Senior Notes and our other debt; |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | Place us at a competitive disadvantage compared to our competitors that have less debt; and |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | Limit, along with the financial and other restrictive covenants in our debt, among other things, our ability to borrow additional funds, dispose of assets or pay cash dividends. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | In September 2008, the FCC’s Office of Inspector General ("OIG") initiated an investigation regarding Alaska DigiTel LLC’s (“Alaska DigiTel”) compliance with program rules and requirements under the Lifeline Program. The request covered the period beginning January 1, 2004 through August 31, 2008 and related to amounts received for Lifeline service.  Alaska DigiTel was an Alaska based wireless communications company of which we acquired an 81.9% equity interest on January 2, 2007 and the remaining 18.1% equity interest on August 18, 2008 and was subsequently merged with one of our wholly owned subsidiaries in April 2009. Prior to August 18, 2008, our control over the operations of Alaska DigiTel was limited as required by the FCC upon its approval of our initial acquisition completed in January 2007. We responded to this request on behalf of Alaska DigiTel and the GCI companies as affiliates.   On January 18, 2011, we reached an agreement with the FCC and the Department of Justice to settle the matter, which required us to contribute $1.6 million to the United States Treasury and grants us a broad release of claims including those under the False Claims Act. The $1.6 million contribution, of which $154,000, $661,000 and $741,000 was recognized in selling, general and administrative expense in the Statement of Operations in the years ending December 31, 2010, 2009 and 2008, respectively, was paid in January 2011; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In August 2010, a GCI-owned aircraft was involved in an accident resulting in five fatalities and injuries to the remaining four passengers on board.  We had aircraft and liability insurance coverage in effect at the time of the accident.  We cannot predict the likelihood or nature of any potential claims related to the accident. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|           |   | Class A |   |   | Class B |   |
|----------------|--------|---------|--------|--------|---------|--------|
|           |   | High    |   |   | Low     |   |   | High |   |   | Low |   |
| 2010      |   |    |   |   |    |   |   |   |   |   |   |   |
| First Quarter  |   | $       | 6.65   |   |    |   | 5.32 |   |   |   | 6.05 |   |   |   | 6.05 |   |
| Second Quarter |   | $       | 7.62   |   |    |   | 5.73 |   |   |   | 7.00 |   |   |   | 7.00 |   |
| Third Quarter  |   | $       | 10.21  |   |    |   | 7.64 |   |   |   | 9.00 |   |   |   | 7.50 |   |
| Fourth Quarter |   | $       | 13.37  |   |    |   | 9.92 |   |   |   | 11.50 |   |   |   | 10.00 |   |
| 2009      |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| First Quarter  |   | $       | 8.61   |   |    |   | 3.78 |   |   |   | 6.00 |   |   |   | 6.00 |   |
| Second Quarter |   | $       | 8.06   |   |    |   | 6.32 |   |   |   | 6.75 |   |   |   | 2.00 |   |
| Third Quarter  |   | $       | 7.21   |   |    |   | 6.41 |   |   |   | 7.00 |   |   |   | 6.40 |   |
| Fourth Quarter |   | $       | 6.82   |   |    |   | 5.87 |   |   |   | 5.00 |   |   |   | 5.00 |   |

----

| COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURNS PERFORMANCE GRAPH FOR GENERAL COMMUNICATION, INC., NASDAQ STOCK MARKET INDEX FOR UNITED STATES COMPANIES, AND NASDAQ TELECOMMUNICATIONS STOCK1,2,3,4 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Measurement Period (Fiscal Year Covered)                                                                                                                                                              | Company ($) | Nasdaq Stock Market Index for U.S. Companies ($) | Nasdaq Telecommunications Stock ($) |
|                                                                                                                                                                                                  |   |   |   |
| FYE 12/31/05                                                                                                                                                                                          |  100.00  |  100.00  |  100.00  |
| FYE 12/31/06                                                                                                                                                                                          |  152.28  |  109.84  |  131.49  |
| FYE 12/31/07                                                                                                                                                                                          |  84.69  |  119.14  |  116.96  |
| FYE 12/31/08                                                                                                                                                                                          |  78.30  |  57.41  |  67.20  |
| FYE 12/31/09                                                                                                                                                                                          |  61.75  |  82.53  |  100.77  |
| FYE 12/31/10                                                                                                                                                                                          |  122.53  |  97.95  |  130.11  |

| 1 | The lines represent annual index levels derived from compounded daily returns that include all dividends. |
|---|-----------------------------------------------------------------------------------------------------------|

| 2 | The indexes are reweighted daily, using the market capitalization on the previous trading day. |
|---|------------------------------------------------------------------------------------------------|

| 3 | If the annual interval, based on the fiscal year-end, is not a trading day, the preceding trading day is used. |
|---|----------------------------------------------------------------------------------------------------------------|

| 4 | The index level for all series was set to $100.00 on December 31, 2005. |
|---|-------------------------------------------------------------------------|

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  |   |                  |            |             | (d) Maximum      |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|--------|-----------------------|-----------------|------------------|------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  |   |                  |            | (c) Total        | Number (or       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  |   |                  |            | Number of        | approximate      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  |   |                  |            | Shares           | Dollar Value) of |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  |   |                  |            | Purchased as     | Shares that May  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  |   | (a) Total             |            | Part of Publicly | Yet Be           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  |   | Number of             | (b) Average     | Announced        | Purchased Under  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  |   | Shares                | Price Paid per  | Plans or         | the Plan or      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Purchased1       | Share  | Programs2        | Programs3  |
|   |  October 1, 2010 to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                  |   |                  |            |
|   |  October 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  7,486,281  | $10.16 | 7,486,281        | $122,057,841    |
|   |  November 1, 2010 to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                  |   |                  |            |
|   |  November 30, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  105,946         | $10.96 |  105,946    | $123,219,019    |
|   |  December 1, 2010 to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                  |   |                  |            |
|   |  December 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  195,747    | $11.72 |  195,747         | $125,512,824    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  | Total  |  7,787,974  |            |             |             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  |   |                  |            |             |             |
|   | 1 Private purchases made under our publicly announced repurchase plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | 2 The repurchase plan was publicly announced on November 3, 2004.  Our plan does not have an expiration date, however transactions pursuant to the plan are subject to periodic approval by our Board of Directors. We expect to continue the repurchases for an indefinite period dependent on leverage, liquidity, company performance, market conditions and subject to continued oversight by our Board of Directors.                                                                                                                                                                                                    |
|   | 3 The total amount approved by our Board of Directors for repurchase under our publicly announced repurchase plan was $275.2 million through December 31, 2010 consisting of $135.0 million through September 30, 2010 and an additional $140.2 million during the three months ended December 31, 2010.  We have made total repurchases under the program of $149.7 million through December 31, 2010.  If stock repurchases are less than the total approved quarterly amount the difference may be carried forward and used to repurchase additional shares in future quarters, subject to board approval. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  |   |                  |            |             |             |

----

|                                                                                                                    |   | Years Ended December 31, |      |
|-------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|-----------|
|                                                                                                                    |   | 2010                     |      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| (Amounts in thousands except per share amounts)                                                                         |   |
| Revenues                                                                                                                |   | $                        | 651,250   |   |   |   | 595,811 |   |   |   | 575,442 |   |   |   | 520,311 |   |   |   | 477,482 |   |
| Income (loss) before income tax  expense and cumulative effect of a  change in accounting principle |   | $                        | 18,443    |   |   |   | 7,452 |   |   |   | (2,295 | ) |   |   | 25,859 |   |   |   | 34,253 |   |
| Cumulative effect of a change in  accounting principal, net of income  tax expense of $44 in 2006   |   | $                        | -         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 64 |   |
| Net income (loss)                                                                                                       |   | $                        | 8,955     |   |   |   | 3,516 |   |   |   | (3,372 | ) |   |   | 13,697 |   |   |   | 18,520 |   |
| Net loss attributable to the  non-controlling interest                                                        |   | $                        | -         |   |   |   | - |   |   |   | 1,503 |   |   |   | 36 |   |   |   | - |   |
| Net income (loss) attributable to GCI  common stockholders                                                    |   | $                        | 8,955     |   |   |   | 3,516 |   |   |   | (1,869 | ) |   |   | 13,733 |   |   |   | 18,520 |   |
| Basic net income (loss) attributable to  GCI per common share                                                 |   | $                        | 0.17      |   |   |   | 0.07 |   |   |   | (0.04 | ) |   |   | 0.26 |   |   |   | 0.34 |   |
| Diluted net income (loss) attributable  to GCI per common share                                               |   | $                        | 0.17      |   |   |   | 0.06 |   |   |   | (0.04 | ) |   |   | 0.23 |   |   |   | 0.33 |   |
| Total assets                                                                                                            |   | $                        | 1,351,760 |   |   |   | 1,418,397 |   |   |   | 1,335,301 |   |   |   | 984,233 |   |   |   | 914,659 |   |
| Long-term debt, including current  portion and net of unamortized  discount                         |   | $                        | 781,717   |   |   |   | 776,380 |   |   |   | 716,831 |   |   |   | 538,398 |   |   |   | 489,462 |   |
| Obligations under capital leases,  including current portion                                                  |   | $                        | 91,165    |   |   |   | 95,914 |   |   |   | 100,329 |   |   |   | 2,851 |   |   |   | 2,857 |   |
| Redeemable preferred stock                                                                                              |   |                     |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Series B                                                                                              |   | $                        | -         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Series C                                                                                              |   | $                        | -         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total GCI stockholders’ equity                                                                                    |   | $                        | 200,506   |   |   |   | 266,317 |   |   |   | 258,915 |   |   |   | 259,433 |   |   |   | 246,278 |   |
| Dividends declared per common share                                                                                     |   | $                        | 0.00      |   |   |   | 0.00 |   |   |   | 0.00 |   |   |   | 0.00 |   |   |   | 0.00 |   |

----

|                                         |   |                    |   |   |   |   |   |   |   |   | Percentage |   |   | Percentage |   |
|----------------------------------------------|--------|-------------------------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|------------|--------|
|                                         |   |                    |   |   |   |   |   |   |   |   | Change1    |   |   | Change1    |   |
|                                         |   | Year Ended December 31, |   |   | 2010   |   |   | 2009   |   |
|                                         |   | 2010                    |   |   | 2009   |   |   | 2008   |   |   | vs. 2009   |   |   | vs. 2008   |   |
|                                         |   |                    |   |   |   |   |   |   |   |   |       |   |   |       |   |
| Statements of Operations Data:               |   |                    |   |   |   |   |   |   |   |   |       |   |   |
| Revenues:                                    |   |                    |   |   |   |   |   |   |   |   |       |   |   |       |   |
|  Consumer segment                       |   |                    | 53     | %      |   |   | 49     | %      |   |   | 45         | %      |   |       | 16     | % |   |   | 15 | % |
|  Network Access segment                 |   |                    | 16     | %      |   |   | 21     | %      |   |   | 27         | %      |   |       | (12    | %) |   |   | (20 | %) |
|  Commercial segment                     |   |                    | 20     | %      |   |   | 18     | %      |   |   | 20         | %      |   |       | 17     | % |   |   | (4 | %) |
|  Managed Broadband segment              |   |                    | 8      | %      |   |   | 8      | %      |   |   | 6          | %      |   |       | 11     | % |   |   | 21 | % |
|  Regulated Operations segment           |   |                    | 3      | %      |   |   | 4      | %      |   |   | 2          | %      |   |       | (5     | %) |   |   | 68 | % |
| Total revenues                               |   |                    | 100    | %      |   |   | 100    | %      |   |   | 100        | %      |   |       | 9      | % |   |   | 4 | % |
| Selling, general and administrative expenses |   |                    | 35     | %      |   |   | 36     | %      |   |   | 37         | %      |   |       | 8      | % |   |   | 1 | % |

----

| Depreciation and amortization expense                 |   |   | 19     | %      |   |   | 21     | %      |   |   | 20     | %      |   |   | 2      | %      |   |   | 8      | %      |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Operating income                                      |   |   | 14     | %      |   |   | 11     | %      |   |   | 8      | %      |   |   | 34     | %      |   |   | 39     | %      |
| Other expense, net                                    |   |   | 11     | %      |   |   | 10     | %      |   |   | 9      | %      |   |   | 19     | %      |   |   | 17     | %      |
| Income before income tax expense                      |   |   | 3      | %      |   |   | 1      | %      |   |   | 0      | %      |   |   | 147    | %      |   |   | 425    | %      |
| Net income (loss)                                     |   |   | 1      | %      |   |   | 1      | %      |   |   | (1     | %)     |   |   | 155    | %      |   |   | 204    | %      |
| Net loss attributable to the non-controlling interest |   |   | 0      | %      |   |   | 0      | %      |   |   | 0      | %      |   |   | 0      | %      |   |   | 100    | %      |
| Net income attributable to GCI                        |   |   | 1      | %      |   |   | 1      | %      |   |   | 0      | %      |   |   | 155    | %      |   |   | 288    | %      |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1 Percentage change in underlying data           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                           |   |   |    |   | Percentage |   |
|--------------------------------|--------|--------|---------|--------|------------|--------|
|                           |   | 2010   |    |   | 2009       |   |   | Change |   |
| Voice                          |   | $      | 57,317  |   |       |   | 52,654 |   |   |   | 9 | % |
| Video                          |   |   | 118,475 |   |       |   | 110,986 |   |   |   | 7 | % |
| Data                           |   |   | 61,364  |   |       |   | 50,327 |   |   |   | 22 | % |
| Wireless                       |   |   | 105,742 |   |       |   | 80,958 |   |   |   | 31 | % |
| Total Consumer segment revenue |   | $      | 342,898 |   |       |   | 294,925 |   |   |   | 16 | % |

----

|                                      |   |   |    |   | Percentage |   |
|-------------------------------------------|--------|--------|---------|--------|------------|--------|
|                                      |   | 2010   |    |   | 2009       |   |   | Change |   |
| Voice                                     |   | $      | 12,042  |   |       |   | 14,952 |   |   |   | (19 | %) |
| Video                                     |   |   | 51,246  |   |       |   | 45,350 |   |   |   | 13 | % |
| Data                                      |   |   | 3,781   |   |       |   | 4,367 |   |   |   | (13 | %) |
| Wireless                                  |   |   | 37,412  |   |       |   | 32,225 |   |   |   | 16 | % |
| Total Consumer segment Cost of Goods Sold |   | $      | 104,481 |   |       |   | 96,894 |   |   |   | 8 | % |

|                             |   |   |    |   | Percentage |   |
|----------------------------------|--------|--------|---------|--------|------------|--------|
|                             |   | 2010   |    |   | 2009       |   |   | Change |   |
| Consumer segment Adjusted EBITDA |   | $      | 114,716 |   |       |   | 86,587 |   |   |   | 32 | % |

|   |                                                                                                                                                                                                                                                                                                                                                                                     |                                                   |   | December 31,  |   | Percentage    |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|--------|---------------|--------|---------------|--------|
|   |                                                                                                                                                                                                                                                                                                                                                                                     |                                                   |   | 2010     |   | 2009     |   | Change |   |
|   |  Voice:                                                                                                                                                                                                                                                                                                                                                                             |                                                   |   |          |   |          |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | Long-distance subscribers1                        |   |  88,200  |   |  90,500  |   | (3%) |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | Long-distance minutes carried (in millions)            |   |  106.9   |   |  114.7   |   | (7%) |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | Total local access lines in service2              |   |  84,800  |   |  84,200  |   | 1% |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | Local access lines in service on GCI facilities2  |   |  77,400  |   |  75,200  |   | 3% |   |
|   |  Video:                                                                                                                                                                                                                                                                                                                                                                             |                                                   |   |          |   |          |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | Basic subscribers3                                |   |  130,000 |   |  130,500 |   | 0% |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | Digital programming tier subscribers4             |   |  81,800  |   |  79,600  |   | 3% |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | HD/DVR converter boxes5                           |   |  88,100  |   |  81,500  |   | 8% |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | Homes passed                                           |   | 238,500       |   |  232,400 |   | 3% |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | Average monthly gross revenue per subscriber6     |   | $ 75.83       |   | $ 70.36       |   | 8% |   |
|   |  Data:                                                                                                                                                                                                                                                                                                                                                                              |                                                   |   |          |   |          |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | Cable modem subscribers7                          |   |  105,700 |   |  100,200 |   | 6% |   |
|   |  Wireless:                                                                                                                                                                                                                                                                                                                                                                          |                                                   |   |          |   |          |   |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | Wireless lines in service8                        |   |  124,900 |   |  115,100 |   | 9% |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     | Average monthly gross revenue per subscriber9     |   | $ 63.96       |   | $ 58.23       |   | 21% |   |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |                                                   |   |          |   |          |   |   |
|   | 1 A long-distance subscriber is defined as a customer account that is invoiced a monthly long-distance plan fee or has made a long-distance call during the month.                                                                                                                                                                                                                  |
|   | 2 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                                                                                                                                                              |
|   | 3 A basic cable subscriber is defined as one basic tier of service delivered to an address or separate subunits thereof regardless of the number of outlets purchased.                                                                                                                                                                                                              |
|   | 4 A digital programming tier subscriber is defined as one digital programming tier of service delivered to an address or separate subunits thereof regardless of the number of outlets or digital programming tiers purchased. Digital programming tier subscribers are a subset of basic subscribers.                                                                              |
|   | 5 A HD/DVR converter box is defined as one box rented by a digital programming or basic tier subscriber. A digital programming or basic tier subscriber is not required to rent an HD/DVR converter box to receive service.                                                                                                                                                         |
|   | 6 Year-to-date average monthly consumer video revenues divided by the average of consumer video basic subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                             |
|   | 7 A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. Cable modem subscribers may also be video basic subscribers though basic cable service is not required to receive cable modem service. |
|   | 8 A wireless line in service is defined as a revenue generating wireless device.                                                                                                                                                                                                                                                                                                    |
|   | 9 Year-to-date average monthly consumer wireless revenues divided by the average of consumer wireless subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                     |

----

| ·   | A 6% increase in programming services revenue to $93.9 million in 2010 primarily resulting from an increase in digital programming tier subscribers in 2010 and a rate increase on certain cable service offerings beginning in August 2009, and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An 8% increase in equipment rental revenue to $23.4 million in 2010 primarily resulting from our customers’ increased use of our HD/DVR converter boxes. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $19.8 million increase in USAC support to $51.4 million. This increase includes a $16.3 million increase in USF high cost support and a $3.5 million increase in USF low income support. We accrue estimated USF high cost support revenue quarterly and adjust our revenue as we obtain new information that changes the variables used to calculate our estimate. The increase in USF high cost support is primarily due to changes in the variables used to calculate our estimate, an increase in the number of wireless subscribers and $1.0 million for amended line count filings for which the revenue recognition criteria was met in the third quarter of 2010.  The increase in USF low income support is due to an increase in the number of wireless subscribers who qualify under this program; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $7.3 million increase in plan fee revenue to $37.8 million due to an increase in the number of wireless subscribers. |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | An absence of $1.7 million in support recorded in 2009 related to services provided during the year ended December 31, 2008.  The support was for a new local access area for which we received ETC status in May 2009.  Collectability was not reasonably assured until we were awarded ETC status, therefore we deferred revenue recognition until such status was confirmed, and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An absence of $810,000 recorded in 2009 related to services provided during the year ended December 31, 2008.  In March 2009, the FCC issued an order which provided uncapped support for all lines served by competitive ETCs for tribal lands in Alaska Native regions retroactive to August 2008.  This revenue was for the additional support for the period August to December 2008. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   |   |    |   | Percentage |   |
|--------------------------------------|--------|--------|---------|--------|------------|--------|
|                                 |   | 2010   |    |   | 2009       |   |   | Change |   |
| Voice                                |   | $      | 29,032  |   |       |   | 49,837 |   |   |   | (42 | %) |
| Data                                 |   |   | 61,494  |   |       |   | 63,862 |   |   |   | (4 | %) |
| Wireless                             |   |   | 16,701  |   |       |   | 8,373 |   |   |   | 99 | % |
| Total Network Access segment revenue |   | $      | 107,227 |   |       |   | 122,072 |   |   |   | (12 | %) |

|                                            |   |   |   |   | Percentage |   |
|-------------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                            |   | 2010   |   |   | 2009       |   |   | Change |   |
| Voice                                           |   | $      | 15,383 |   |       |   | 16,522 |   |   |   | (7 | %) |
| Data                                            |   |   | 8,234  |   |       |   | 9,444 |   |   |   | (13 | %) |
| Wireless                                        |   |   | 1,413  |   |       |   | 1,287 |   |   |   | 10 | % |
| Total Network Access segment Cost of Goods Sold |   | $      | 25,030 |   |       |   | 27,253 |   |   |   | (8 | %) |

----

|                                   |   |   |   |   | Percentage |   |
|----------------------------------------|--------|--------|--------|--------|------------|--------|
|                                   |   | 2010   |   |   | 2009       |   |   | Change |   |
| Network Access segment Adjusted EBITDA |   | $      | 50,259 |   |       |   | 57,563 |   |   |   | (13 | %) |

|   |                                                                                                                                                                 |                                                           |   | December 31,      |   | Percentage        |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------|--------|-------------------|--------|-------------------|--------|
|   |                                                                                                                                                                 |                                                           |   | 2010         |   | 2009         |   | Change |   |
|   |  Voice:                                                                                                                                                         |                                                           |   |              |   |              |   |   |
|   |                                                                                                                                                                 | Long-distance minutes carried (in millions)                    |   |  785.4  |   |  840.0  |   | (7%) |   |
|   |                                                                                                                                                                 |                                                           |   |              |   |              |   |   |
|   |  Data:                                                                                                                                                          |                                                           |   |              |   |              |   |   |
|   |                                                                                                                                                                 | Total Internet service provider access lines in service1  |   |  1,700  |   |  1,700  |   | 0% |   |
|   |                                                                                                                                                                 |                                                           |   |              |   |              |   |   |
|   | 1 An Internet service provider access line is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network |

----

|                             |   |   |    |   | Percentage |   |
|----------------------------------|--------|--------|---------|--------|------------|--------|
|                             |   | 2010   |    |   | 2009       |   |   | Change |   |
| Voice                            |   | $      | 31,720  |   |       |   | 30,830 |   |   |   | 3 | % |
| Video                            |   |   | 11,178  |   |       |   | 9,175 |   |   |   | 22 | % |
| Data                             |   |   | 76,823  |   |       |   | 63,383 |   |   |   | 21 | % |
| Wireless                         |   |   | 8,737   |   |       |   | 6,747 |   |   |   | 29 | % |
| Total Commercial segment revenue |   | $      | 128,458 |   |       |   | 110,135 |   |   |   | 17 | % |

|                                        |   |   |   |   | Percentage |   |
|---------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                        |   | 2010   |   |   | 2009       |   |   | Change |   |
| Voice                                       |   | $      | 15,212 |   |       |   | 18,563 |   |   |   | (18 | %) |
| Video                                       |   |   | 2,140  |   |       |   | 1,956 |   |   |   | 9 | % |
| Data                                        |   |   | 38,586 |   |       |   | 28,661 |   |   |   | 35 | % |
| Wireless                                    |   |   | 3,947  |   |       |   | 3,065 |   |   |   | 29 | % |
| Total Commercial segment Cost of Goods Sold |   | $      | 59,885 |   |       |   | 52,245 |   |   |   | 15 | % |

|                               |   |   |   |   | Percentage |   |
|------------------------------------|--------|--------|--------|--------|------------|--------|
|                               |   | 2010   |   |   | 2009       |   |   | Change |   |
| Commercial segment Adjusted EBITDA |   | $      | 30,871 |   |       |   | 23,174 |   |   |   | 33 | % |

|                                                                                                                                                                                                                                              |   | December 31, |   |   | Percentage |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                              |   | 2010         |   |   | 2009       |   |   | Change |   |
|  Voice:                                                                                                                                                                                                                                      |   |         |   |   |       |   |   |   |   |
| Long-distance subscribers1                                                                                                                                                                                                                   |   |         | 9,100  |   |       |   | 9,500 |   |   |   | (4 | %) |
| Total local access lines in service2                                                                                                                                                                                                         |   |         | 48,300 |   |       |   | 47,700 |   |   |   | 1 | % |
| Local access lines in service on GCI facilities                                                                                                                                                                                                   |   |         | 21,200 |   |       |   | 19,600 |   |   |   | 8 | % |
| Long-distance minutes carried (in millions)                                                                                                                                                                                                       |   |         | 116.0  |   |       |   | 123.2 |   |   |   | (6 | %) |
|                                                                                                                                                                                                                                              |   |         |   |   |       |   |   |   |   |   |   |   |
|  Data:                                                                                                                                                                                                                                       |   |         |   |   |       |   |   |   |   |   |   |   |
| Cable modem subscribers3                                                                                                                                                                                                                     |   |         | 10,700 |   |       |   | 10,500 |   |   |   | 2 | % |
|                                                                                                                                                                                                                                              |   |         |   |   |       |   |   |   |   |   |   |   |
|  Wireless:                                                                                                                                                                                                                                   |   |         |   |   |       |   |   |   |   |   |   |   |
| Wireless lines in service4                                                                                                                                                                                                                   |   |         | 13,800 |   |       |   | 10,300 |   |   |   | 34 | % |
|                                                                                                                                                                                                                                              |   |         |   |   |       |   |   |   |   |   |   |   |
| 1 A long-distance customer is defined as a customer account that is invoiced a monthly long-distance plan fee or has made a long-distance call during the month.                                                                             |   |
| 2 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                       |   |
| 3 A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. |   |
| 4 A wireless line in service is defined as a revenue generating wireless device.                                                                                                                                                             |   |
|                                                                                                                                                                                                                                              |   |

----

| ·   | A $799,000 or 32% increase in USAC support. We accrue estimated USF high cost support revenue quarterly and adjust our revenue as we obtain new information that changes the variables used to calculate our estimate.  The increase in USF high cost support is primarily due to changes in the variables used to calculate our estimate and an increase in the number of local subscribers, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $493,000 or 3% increase in local plan fee revenue due to an increase in the number of lines in service. |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | A $995,000 or 90% increase in USAC support.  We accrue estimated USF high cost support revenue quarterly and adjust our revenue as we obtain new information that changes the variables used to calculate our estimate.  The increase in USF high cost support is primarily due to changes in the variables used to calculate our estimate and an increase in the number of wireless subscribers; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An $812,000 or 54% increase in plan fee revenue mainly due to an increase in the number of wireless subscribers. |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | A $1.2 million cost saving from increased deployment of local access services lines on our own facilities during 2010, |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | A $1.0 million favorable adjustment based upon refunds from several vendors.  In the course of business we estimate unbilled long-distance services Cost of Goods Sold based upon minutes of use processed through our network and established rates.  Such estimates are revised when subsequent billings are received, payments are made, billing matters are researched and resolved, tariffed billing periods lapse, or when disputed charges are resolved; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $700,000 or 7% decrease in long-distance costs related to the decrease in minutes carried. |
|--------------------|----------------------------------------------------------------------------------------------|

----

| ·   | A $3.8 million or 9% increase in monthly contract revenue due to increased data network capacity purchased by our ConnectMD® and SchoolAccess® customers, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $1.2 million or 143% increase in product sales to our customers. |
|--------------------|--------------------------------------------------------------------|

|   |                                                                                                                                                        |                                                         |   | December 31,       |   | Percentage         |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|--------|--------------------|--------|--------------------|--------|
|   |                                                                                                                                                        |                                                         |   | 2010          |   | 2009          |   | Change |   |
|   |  Voice:                                                                                                                                                |                                                         |   |               |   |               |   |   |
|   |                                                                                                                                                        | Total local access lines in service on GCI facilities1  |   |  10,000  |   |  11,100  |   | (10%) |   |
|   |                                                                                                                                                        |                                                         |   |               |   |               |   |   |
|   | 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network. |

----

| ·   | A $4.7 million increase in health benefit costs, |
|--------------------|--------------------------------------------------|

| ·   | A $4.5 million increase in labor costs, |
|--------------------|-----------------------------------------|

| ·   | A $3.8 million increase in share-based compensation expense primarily due to the absence of a $2.4 million reversal of expense in 2009.  The expense had been properly recognized in previous periods for certain performance-based stock options and restricted stock awards but in the third quarter of 2009 we determined they were not expected to vest, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $2.0 million in costs, including workers compensation expense, related to an accident involving our company-owned aircraft in August 2010, and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $913,000 increase in our company-wide success sharing bonus accrual. |
|--------------------|------------------------------------------------------------------------|

| ·   | A $2.4 million decrease in sales expense, |
|--------------------|-------------------------------------------|

| ·   | The absence of $1.2 million in costs for the conversion of our customers’ wireless phones to our facilities in 2009, and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | The absence of a $640,000 contribution expense recognized upon the gift of an IRU to the University of Alaska that was recorded in 2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   |   |    |   | Percentage |   |
|--------------------------------|--------|--------|---------|--------|------------|--------|
|                           |   | 2009   |    |   | 2008       |   |   | Change |   |
| Voice                          |   | $      | 52,654  |   |       |   | 47,042 |   |   |   | 12 | % |
| Video                          |   |   | 110,986 |   |       |   | 105,238 |   |   |   | 5 | % |
| Data                           |   |   | 50,327  |   |       |   | 42,692 |   |   |   | 18 | % |
| Wireless                       |   |   | 80,958  |   |       |   | 60,660 |   |   |   | 33 | % |
| Total Consumer segment revenue |   | $      | 294,925 |   |       |   | 255,632 |   |   |   | 15 | % |

|                                      |   |   |   |   | Percentage |   |
|-------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                      |   | 2009   |   |   | 2008       |   |   | Change |   |
| Voice                                     |   | $      | 14,952 |   |       |   | 18,121 |   |   |   | (17 | %) |
| Video                                     |   |   | 45,350 |   |       |   | 40,279 |   |   |   | 13 | % |
| Data                                      |   |   | 4,367  |   |       |   | 6,554 |   |   |   | (33 | %) |
| Wireless                                  |   |   | 32,225 |   |       |   | 24,899 |   |   |   | 29 | % |
| Total Consumer segment Cost of Goods Sold |   | $      | 96,894 |   |       |   | 89,853 |   |   |   | 8 | % |

----

|                             |   |   |   |   | Percentage |   |
|----------------------------------|--------|--------|--------|--------|------------|--------|
|                             |   | 2009   |   |   | 2008       |   |   | Change |   |
| Consumer segment Adjusted EBITDA |   | $      | 86,587 |   |       |   | 58,949 |   |   |   | 47 | % |

|                                                                                                                                                                                                                                                                                                                                                                                     |   | December 31, |    |   | Percentage |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                     |   | 2009         |    |   | 2008       |   |   | Change |   |
|  Voice:                                                                                                                                                                                                                                                                                                                                                                             |   |         |    |   |       |   |   |   |   |
| Long-distance subscribers1                                                                                                                                                                                                                                                                                                                                                          |   |         | 90,500  |   |       |   | 88,600 |   |   |   | 2 | % |
| Long-distance minutes carried (in millions)                                                                                                                                                                                                                                                                                                                                              |   |         | 114.7   |   |       |   | 128.6 |   |   |   | (11 | %) |
| Total local access lines in service2                                                                                                                                                                                                                                                                                                                                                |   |         | 84,200  |   |       |   | 80,700 |   |   |   | 4 | % |
| Local access lines in service on GCI facilities2                                                                                                                                                                                                                                                                                                                                    |   |         | 75,200  |   |       |   | 68,700 |   |   |   | 9 | % |
|  Video:                                                                                                                                                                                                                                                                                                                                                                             |   |         |    |   |       |   |   |   |   |   |   |   |
| Basic subscribers3                                                                                                                                                                                                                                                                                                                                                                  |   |         | 130,500 |   |       |   | 132,500 |   |   |   | (2 | %) |
| Digital programming tier subscribers4                                                                                                                                                                                                                                                                                                                                               |   |         | 79,600  |   |       |   | 71,900 |   |   |   | 11 | % |
| HD/DVR converter boxes5                                                                                                                                                                                                                                                                                                                                                             |   |         | 81,500  |   |       |   | 67,800 |   |   |   | 20 | % |
| Homes passed                                                                                                                                                                                                                                                                                                                                                                             |   |         | 232,400 |   |       |   | 229,300 |   |   |   | 1 | % |
| Average monthly gross revenue per subscriber6                                                                                                                                                                                                                                                                                                                                       |   | $            | 70.36   |   |       | $      | 67.40 |   |   |   | 4 | % |
|  Data:                                                                                                                                                                                                                                                                                                                                                                              |   |         |    |   |       |   |   |   |   |   |   |   |
| Cable modem subscribers7                                                                                                                                                                                                                                                                                                                                                            |   |         | 100,200 |   |       |   | 94,400 |   |   |   | 6 | % |
|  Wireless:                                                                                                                                                                                                                                                                                                                                                                          |   |         |    |   |       |   |   |   |   |   |   |   |
| Wireless lines in service8                                                                                                                                                                                                                                                                                                                                                          |   |         | 115,100 |   |       |   | 88,700 |   |   |   | 30 | % |
| Average monthly gross revenue per subscriber9                                                                                                                                                                                                                                                                                                                                       |   | $            | 61.54   |   |       | $      | 57.77 |   |   |   | 7 | % |
|                                                                                                                                                                                                                                                                                                                                                                                     |   |         |    |   |       |   |   |   |   |   |   |   |
| 1 A long-distance customer is defined as a customer account that is invoiced a monthly long-distance plan fee or has made a long-distance call during the month.                                                                                                                                                                                                                    |   |
| 2 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                                                                                                                                                              |   |
| 3 A basic cable subscriber is defined as one basic tier of service delivered to an address or separate subunits thereof regardless of the number of outlets purchased. On January 1, 2009, our Consumer segment transferred 2,900 basic cable subscribers to our Commercial segment.                                                                                                |   |
| 4 A digital programming tier subscriber is defined as one digital programming tier of service delivered to an address or separate subunits thereof regardless of the number of outlets or digital programming tiers purchased. Digital programming tier subscribers are a subset of basic subscribers.                                                                              |   |
| 5 A HD/DVR converter box is defined as one box rented by a digital programming or basic tier subscriber. A digital programming or basic tier subscriber is not required to rent an HD/DVR converter box to receive service.                                                                                                                                                         |   |
| 6 Year-to-date average monthly consumer video revenues divided by the average of consumer video basic subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                             |   |
| 7 A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. Cable modem subscribers may also be video basic subscribers though basic cable service is not required to receive cable modem service. |   |
| 8 A wireless line in service is defined as a revenue generating wireless device.                                                                                                                                                                                                                                                                                                    |   |
| 9 Year-to-date average monthly consumer wireless revenues divided by the average of consumer wireless subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                             |   |

----

| ·   | A 4% increase in programming services revenue to $88.1 million in 2009 primarily resulting from an increase in digital programming tier subscribers in 2009 and a rate increase on certain cable service offerings beginning in August 2009, and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 12% increase in equipment rental revenue to $21.6 million in 2009 primarily resulting from our customers’ increased use of our HD/DVR converter boxes. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An $11.9 million or 162% increase in recognized support from the USAC primarily due to the following: |
|--------------------|-------------------------------------------------------------------------------------------------------|

| o   | Increased wireless subscribers in areas that receive USAC support, |
|---------------|--------------------------------------------------------------------|

| o   | Recognition of $3.1 million to be received from the USAC for interstate common line support for a new local access area for which we received ETC status in May 2009 of which $1.7 million was related to services provided during 2008.  Collectability was not reasonably assured until we were awarded ETC status, therefore, we deferred revenue recognition until such status was confirmed, |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Recognition of $1.1 million upon a change in our estimate of support to be received from the USAC for interstate common line support of which $77,000 was related to 2008.  We accrue estimated program revenue quarterly and adjust our revenue as we obtain new information that changes the variables used to calculate our estimate, and |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | The FCC order issued in March 2009, the result of which provides uncapped support for all lines served by competitive ETCs for tribal lands or Alaska Native regions retroactive to August 2008.  The issuance of this order allowed us to recognize $810,000 in additional USAC support from August 2008 to December 2008 in 2009 that is included in the revenue increase discussed above. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An increase in the number of wireless subscribers. |
|--------------------|----------------------------------------------------|

----

|                                 |   |   |    |   | Percentage |   |
|--------------------------------------|--------|--------|---------|--------|------------|--------|
|                                 |   | 2009   |    |   | 2008       |   |   | Change |   |
| Voice                                |   | $      | 49,837  |   |       |   | 79,744 |   |   |   | (38 | %) |
| Data                                 |   |   | 63,862  |   |       |   | 71,414 |   |   |   | (11 | %) |
| Wireless                             |   |   | 8,373   |   |       |   | 2,663 |   |   |   | 214 | % |
| Total Network Access segment revenue |   | $      | 122,072 |   |       |   | 153,821 |   |   |   | (21 | %) |

|                                            |   |   |   |   | Percentage |   |
|-------------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                            |   | 2009   |   |   | 2008       |   |   | Change |   |
| Voice                                           |   | $      | 16,522 |   |       |   | 27,149 |   |   |   | (39 | %) |
| Data                                            |   |   | 9,444  |   |       |   | 11,539 |   |   |   | (18 | %) |
| Wireless                                        |   |   | 1,287  |   |       |   | 1,638 |   |   |   | (21 | %) |
| Total Network Access segment Cost of Goods Sold |   | $      | 27,253 |   |       |   | 40,326 |   |   |   | (32 | %) |

----

|                                   |   |   |   |   | Percentage |   |
|----------------------------------------|--------|--------|--------|--------|------------|--------|
|                                   |   | 2009   |   |   | 2008       |   |   | Change |   |
| Network Access segment Adjusted EBITDA |   | $      | 57,563 |   |       |   | 73,647 |   |   |   | (22 | %) |

|                                                                                                                                                                 |   | December 31, |   |   | Percentage |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|------------|--------|
|                                                                                                                                                                 |   | 2009         |   |   | 2008       |   |   | Change |   |
|  Voice:                                                                                                                                                         |   |         |   |   |       |   |   |   |   |
| Long-distance minutes carried (in millions)                                                                                                                          |   |         | 840    |   |       |   | 1,094 |   |   |   | (23 | %) |
|                                                                                                                                                                 |   |         |   |   |       |   |   |   |   |   |   |   |
|  Data:                                                                                                                                                          |   |         |   |   |       |   |   |   |   |   |   |   |
| Total Internet service provider access lines in service1                                                                                                        |   |         | 1,700  |   |       |   | 1,800 |   |   |   | (6 | %) |
|                                                                                                                                                                 |   |         |   |   |       |   |   |   |   |   |   |   |
| 1 An Internet service provider access line is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network |   |

----

|                             |   |   |    |   | Percentage |   |
|----------------------------------|--------|--------|---------|--------|------------|--------|
|                             |   | 2009   |    |   | 2008       |   |   | Change |   |
| Voice                            |   | $      | 30,830  |   |       |   | 29,398 |   |   |   | 5 | % |
| Video                            |   |   | 9,175   |   |       |   | 9,604 |   |   |   | (4 | %) |
| Data                             |   |   | 63,383  |   |       |   | 70,068 |   |   |   | (10 | %) |
| Wireless                         |   |   | 6,747   |   |       |   | 5,590 |   |   |   | 21 | % |
| Total Commercial segment revenue |   | $      | 110,135 |   |       |   | 114,660 |   |   |   | (4 | %) |

|                                        |   |   |   |   | Percentage |   |
|---------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                        |   | 2009   |   |   | 2008       |   |   | Change |   |
| Voice                                       |   | $      | 18,563 |   |       |   | 19,581 |   |   |   | (5 | %) |
| Video                                       |   |   | 1,956  |   |       |   | 1,551 |   |   |   | 26 | % |
| Data                                        |   |   | 28,661 |   |       |   | 34,391 |   |   |   | (17 | %) |
| Wireless                                    |   |   | 3,065  |   |       |   | 3,957 |   |   |   | (23 | %) |
| Total Commercial segment Cost of Goods Sold |   | $      | 52,245 |   |       |   | 59,480 |   |   |   | (12 | %) |

|                               |   |   |   |   | Percentage |   |
|------------------------------------|--------|--------|--------|--------|------------|--------|
|                               |   | 2009   |   |   | 2008       |   |   | Change |   |
| Commercial segment Adjusted EBITDA |   | $      | 23,174 |   |       |   | 20,710 |   |   |   | 12 | % |

|                                                                                                                                                                                                                                              |   | December 31, |   |   | Percentage |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                              |   | 2009         |   |   | 2008       |   |   | Change |   |
|  Voice:                                                                                                                                                                                                                                      |   |         |   |   |       |   |   |   |   |
| Long-distance subscribers1                                                                                                                                                                                                                   |   |         | 9,500  |   |       |   | 9,700 |   |   |   | (2 | %) |
| Total local access lines in service2                                                                                                                                                                                                         |   |         | 47,700 |   |       |   | 46,200 |   |   |   | 3 | % |
| Local access lines in service on GCI facilities                                                                                                                                                                                                   |   |         | 19,600 |   |       |   | 18,700 |   |   |   | 5 | % |
| Long-distance minutes carried (in millions)                                                                                                                                                                                                       |   |         | 123.2  |   |       |   | 129.5 |   |   |   | (5 | %) |
|                                                                                                                                                                                                                                              |   |         |   |   |       |   |   |   |   |   |   |   |
|  Data:                                                                                                                                                                                                                                       |   |         |   |   |       |   |   |   |   |   |   |   |
| Cable modem subscribers3                                                                                                                                                                                                                     |   |         | 10,500 |   |       |   | 8,900 |   |   |   | 18 | % |
|                                                                                                                                                                                                                                              |   |         |   |   |       |   |   |   |   |   |   |   |
|  Wireless:                                                                                                                                                                                                                                   |   |         |   |   |       |   |   |   |   |   |   |   |
| Wireless lines in service4                                                                                                                                                                                                                   |   |         | 10,300 |   |       |   | 7,600 |   |   |   | 36 | % |
| 1 A long-distance subscriber is defined as a customer account that is invoiced a monthly long-distance plan fee or has made a long-distance call during the month.                                                                           |   |
| 2 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                       |   |
| 3 A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. |   |
| 4 A wireless line in service is defined as a revenue generating wireless device.                                                                                                                                                             |   |

----

----

|   |                                                                                                                                                        |                                       |   | December 31,       |   | Percentage         |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|--------|--------------------|--------|--------------------|--------|
|   |                                                                                                                                                        |                                       |   | 2009          |   | 2008          |   | Change |   |
|   |  Voice:                                                                                                                                                |                                       |   |               |   |               |   |   |
|   |                                                                                                                                                        | Total local access lines in service1  |   |  11,100  |   |  12,100  |   | (8%) |   |
|   |                                                                                                                                                        |                                       |   |               |   |               |   |   |   |
|   |                                                                                                                                                        |                                       |   |               |   |               |   |   |
|   | 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network. |

| ·   | A $4.5 million increase in labor costs, |
|--------------------|-----------------------------------------|

| ·   | $4.1 million in additional expense resulting from our June 1, 2008, acquisition of UUI and Unicom, |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | A $1.4 million increase in our company-wide success sharing bonus accrual in 2009, |
|--------------------|------------------------------------------------------------------------------------|

| ·   | $1.1 million in additional expense incurred in 2009 for the conversion of our customers' wireless phones to our facilities, and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $1.1 million increase in lease related expense. |
|--------------------|---------------------------------------------------|

| ·   | A $4.9 million decrease in contract labor costs, |
|--------------------|--------------------------------------------------|

| ·   | A $4.5 million decrease in share-based compensation expense primarily due to the reversal of expense properly recognized in previous periods for certain performance-based stock options and restricted stock awards that were ultimately not expected to vest, and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The absence of $1.8 million to terminate a management agreement that was paid in 2008 upon the acquisition of our non-controlling interest in Alaska DigiTel. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | A $3.7 million decrease in capitalized interest in 2009 compared to 2008, |
|--------------------|---------------------------------------------------------------------------|

| ·   | $2.7 million in additional interest expense resulting from the Galaxy 18 capital lease commencing in May 2008, and |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | A $1.9 million increase in interest expense resulting from the 2009 write-off of the original issue discount on our Senior Credit Facility. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                 |   | 2010   |     |   | 2009   |   |
|------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Operating activities                                 |   | $      | 171,259  |   |   |   | 100,919 |   |
| Investing activities                                 |   |   | (104,722 | )      |   |   | (125,877 | ) |
| Financing activities                                 |   |   | (82,243  | )      |   |   | 43,830 |   |
| Net increase (decrease) in cash and cash equivalents |   | $      | (15,706  | )      |   |   | 18,872 |   |

----

|                                          |   | Payments Due by Period |      |
|-----------------------------------------------|--------|------------------------|-----------|
|                                          |   | Total                  |      |   | Less than 1 Year |   |   | 1 to 3 |   |   | 4 to 5 |   |   | More Than 5 Years |   |
|                                          | Years  |                   |      | Years |   |
|                                          |   | (Amounts in thousands) |      |
| Long-term debt                                |   | $                      | 786,676   |   |   |   | 2,516 |   |   |   | 5,073 |   |   |   | 344,247 |   |   |   | 434,840 |   |
| Interest on long-term debt                    |   |                   | 432,399   |   |   |   | 62,860 |   |   |   | 125,123 |   |   |   | 90,040 |   |   |   | 154,376 |   |
| Capital lease obligations, including interest |   |                   | 137,130   |   |   |   | 11,672 |   |   |   | 23,474 |   |   |   | 23,513 |   |   |   | 78,471 |   |
| Operating lease commitments                   |   |                   | 151,401   |   |   |   | 21,495 |   |   |   | 33,924 |   |   |   | 28,467 |   |   |   | 67,515 |   |
| Purchase obligations                          |   |                   | 30,939    |   |   |   | 18,554 |   |   |   | 9,143 |   |   |   | 3,242 |   |   |   | - |   |
| Total contractual obligations                 |   | $                      | 1,538,545 |   |   |   | 117,097 |   |   |   | 196,737 |   |   |   | 489,509 |   |   |   | 735,202 |   |

| ·   | A non-cancelable commitment to purchase hardware and software capable of providing wireless service to small markets in rural Alaska of $4.8 million, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Cancelable open purchase orders for goods and services for capital projects and normal operations totaling $15.0 million which are not included in our Consolidated Balance Sheets at December 31, 2010, because the goods had not been received or the services had not been performed at December 31, 2010. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

| Name                | Age      | Position                                                                 |
|---------------------|----------|--------------------------------------------------------------------------|
| Stephen M. Brett1   | 70       | Chairman, Director                                                  |
| Ronald A. Duncan1   | 58       | President, Chief Executive Officer and Director                     |
| John M. Lowber      | 61  | Senior Vice President, Chief Financial Officer, Secretary, and Treasurer |
| G. Wilson Hughes    | 65  | Executive Vice President and General Manager                             |
| William C. Behnke   | 53  | Senior Vice President                                                    |
| Martin E. Cary      | 46  | Vice President – General Manager, Managed Broadband Services       |
| Gregory F. Chapados | 53  | Senior Vice President                                                    |
| Richard P. Dowling  | 67  | Senior Vice President                                                    |
| Paul E. Landes      | 52  | Senior Vice President and General Manager, Consumer Services             |
| Gregory W. Pearce   | 47  | Vice President and General Manager, Business Services                    |
| Tina M. Pidgeon     | 42       | Senior Vice President                                               |
| Jerry A. Edgerton1  | 68  | Director                                                                 |
| Scott M. Fisher1    | 44       | Director                                                            |
| William P. Glasgow1 | 52  | Director                                                                 |
| Mark W. Kroloff1    | 53       | Director                                                            |
| Stephen R. Mooney1  | 51  | Director                                                                 |
| James M. Schneider1 | 58       | Director                                                            |

| 1 | The present classification of our board is as follows: (1) Class I – Messrs. Edgerton and Kroloff, whose present terms expire at the time of our 2011 annual meeting; (2) Class II – Messrs. Brett, Duncan and Mooney whose present terms expire at the time of our 2012 annual meeting; and (3) Class III – Messrs. Fisher, Glasgow, and Schneider, whose present terms expire at the time of our 2013 annual meeting. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| ·   | Understanding of GAAP and financial statements. |
|--------------------|-------------------------------------------------|

| ·   | Ability to assess the general application of GAAP in connection with accounting for estimates, accruals and reserves. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | Experience in preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by our financial statements, or experience actively supervising one or more persons engaged in such activities. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Understanding of internal control over financial reporting. |
|--------------------|-------------------------------------------------------------|

----

| ·   | Understanding of audit committee functions. |
|--------------------|---------------------------------------------|

| ·   | Education and experience as a principal financial officer, principal accounting officer, controller, public accountant or auditor or experience in one or more positions that involved the performance of similar functions. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor or person performing similar functions. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing or evaluation of financial statements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other relevant experience. |
|--------------------|----------------------------|

| ·   | Principal Accountant Selection, Qualification – Is directly responsible for appointment, compensation, retention, oversight, qualifications and independence of our External Accountant. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Financial Statements – Assists in our board's oversight of integrity of the Company financial statements. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Financial Reports, Internal Control – Is directly responsible for oversight of the audit by our External Accountant of our financial reports and reports on internal control. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Annual Reports – Prepares reports required to be included in our annual proxy statement. |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | Complaints – Receives and responds to certain complaints relating to internal accounting controls, and auditing matters, confidential, anonymous submissions by our employees regarding questionable accounting or auditing matters, and certain alleged illegal acts or behavior-related conduct in violation of our Ethics Code.  See "Part III – Item 10 – Code of Business Conduct and Ethics." |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Principal Accountant Disagreements – Resolves disagreements, if any, between our External Accountant and us regarding financial reporting. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Non-Audit Services – Reviews and pre-approves any non-audit services (audit-related, tax and other non-audit related services) offered to us by our External Accountant ("Non-Audit Services"). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Attorney Reports – Addresses certain attorney reports, if any, relating to violation of securities law or fiduciary duty by one of our officers, directors, employees or agents. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Related Party Transactions – Reviews certain related party transactions as described elsewhere in this report.  See "Part III – Item 13 – Certain Transactions." |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other – Carries out other assignments as designated by our board. |
|--------------------|-------------------------------------------------------------------------|

----

| ·   | Review, on an annual basis, plans and targets for executive officer and board member compensation, if any – |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | Review is specifically to address expected performance and compensation of, and the criteria on which compensation is based for, the chief executive officer and such other of our executive officers as our board may designate for this purpose. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Monitor the effect of ongoing events on, and the effectiveness of, existing compensation policies, goals, and plans – |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | Events specifically include but are not limited to the status of the premise that all pay systems correlate with our compensation goals and policies. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Report from time to time, its findings to our board. |
|--------------------|------------------------------------------------------|

| ·   | Administer our Amended and Restated 1986 Stock Option Plan ("Stock Option Plan") and approve grants of options and awards pursuant to the plan. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Monitor compensation-related publicity and public and private sector developments on executive compensation. |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | Familiarize itself with, and monitor the tax, accounting, corporate, and securities law ramifications of, our compensation policies, including but not limited to – |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Comprehending a senior executive officer's total compensation package. |
|--------------------|------------------------------------------------------------------------|

| ·   | Comprehending the package's total cost to us and its total value to the recipient. |
|--------------------|------------------------------------------------------------------------------------|

| ·   | Paying close attention to salary, bonuses, individual insurance and health benefits, perquisites, special benefits to specific executive officers, and other retirement benefits. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Establish the overall cap on executive compensation and the measure of performance for executive officers, either by predetermined measurement or by a subjective evaluation. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Strive to make our compensation plans simple, fair, and structured so as to maximize shareholder value. |
|--------------------|---------------------------------------------------------------------------------------------------------|

----

| ·   | Compensation is related to performance and must cause alignment of interests of executive officers with the long term interests of our shareholders. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Compensation targets must take into consideration competitive market conditions and provide incentives for superior performance by the Company. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Actual compensation must take into consideration the Company's and the executive officer's performance over the prior year and the long term, and the Company's resources. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Compensation is based upon both qualitative and quantitative factors. |
|--------------------|-----------------------------------------------------------------------|

| ·   | Compensation must enable the Company to attract and retain management necessary to cause the Company to succeed. |
|--------------------|------------------------------------------------------------------------------------------------------------------|

----

| ·   | Companies in industries similar to our Company. |
|--------------------|-------------------------------------------------|

| ·   | Companies with which our Company competes for executive talent. |
|--------------------|-----------------------------------------------------------------|

| ·   | Our Company's direct business competitors. |
|--------------------|--------------------------------------------|

| ·   | Companies that compete with our Company for investment dollars. |
|--------------------|-----------------------------------------------------------------|

| Alaska Communications Systems Group, Inc.  | Knology, Inc.                  |
|--------------------------------------------|--------------------------------|
| C Beyond, Inc.                             | Mediacom Communications Corp.  |
| Cincinnati Bell, Inc.                      | Premiere Global Services, Inc. |
| Consolidated Communications Holdings, Inc. | RCN Corp                       |
| Crown Media Holdings, Inc.                 | SureWest Communications        |
| Equinix, Inc.                              | Time Warner Telecom, Inc.      |
| Grande Communications                      | Wave Broadband                 |
| Iowa Telecommunications Services, Inc.     | XO Holdings, Inc.              |

----

| ·   | Base Salary. |
|--------------------|--------------|

| ·   | Incentive Compensation Bonus Plan ("Incentive Compensation Plan"). |
|--------------------|--------------------------------------------------------------------|

| ·   | Stock Option Plan. |
|--------------------|--------------------|

| ·   | Perquisites. |
|--------------------|--------------|

| ·   | Retirement and Welfare Benefits. |
|--------------------|----------------------------------|

----

| Name                |   | Short-Term IncentiveCompensation – Target($) |      |   | Long-Term IncentiveCompensation – Target($) |   |    | Total Annual Target –Incentive Compensation Plan($) |   |
|---------------------|--------|---------------------------------------------------------|-----------|--------|---------------------------------------------------|--------|---------|-----------------------------------------------------------|--------|
| Ronald A. Duncan    |   |                                                    | 1,450,000 |   |                                              |   | 350,000 |                                                      |   |   | 1,800,000 |   |
| G. Wilson Hughes    |   |                                                    | 466,667   |   |                                              |   | 333,333 |                                                      |   |   | 800,000 |   |
| John M. Lowber      |   |                                                    | 350,000   |   |                                              |   | 200,000 |                                                      |   |   | 550,000 |   |
| Gregory F. Chapados |   |                                                    | 350,000   |   |                                              |   | 200,000 |                                                      |   |   | 550,000 |   |

| Name                |   | Free Cash Flow Goal($) |    |   | Capex Spending($) |   |    | Discretionary($) |   |   | 2010 Short-TermIncentive Compensation Plan Target($) |   |
|---------------------|--------|------------------------|---------|--------|-------------------|--------|---------|------------------|--------|--------|------------------------------------------------------|--------|
| Ronald A. Duncan    |   |                   | 500,000 |   |              |   | 200,000 |             |   |   | 750,000                                              |   |   |   | 1,450,000 |   |
| G. Wilson Hughes    |   |                   | 200,000 |   |              |   | 100,000 |             |   |   | 166,667                                              |   |   |   | 466,667 |   |
| John M. Lowber      |   |                   | 150,000 |   |              |   | 50,000  |             |   |   | 150,000                                              |   |   |   | 350,000 |   |
| Gregory F. Chapados |   |                   | 100,000 |   |              |   | 25,000  |             |   |   | 225,000                                              |   |   |   | 350,000 |   |

----

| (1)   | Cash Adjusted EBITDA – Adjusted EBITDA, plus IRU sales, less non-cash items and adjusted for new businesses.  The target for year over year growth in this metric was $14.6 million in 2010. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Free Cash Flow – Cash Adjusted EBITDA, less capital expenditure spending ("Capex Spending"), less interest expense and less cash taxes.  The target for year over year growth in this metric was $25.1 million in 2010. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Increase in Cash Balance - Targeted Free Cash Flow, plus acquisition payments, plus net principal payments, plus stock repurchases and dividends, if any.  The target for this component was $18.5 million in 2010. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Goals                                                     |   | Ronald A. Duncan |        |   | G. Wilson Hughes |   |        | John M. Lowber |   |   | Gregory F. Chapados |   |
|-----------------------------------------------------------|--------|------------------|-------------|--------|------------------|--------|-------------|----------------|--------|--------|---------------------|--------|
| Free Cash Flow Goal – Target Incentive Compensation |   | $                | 500,000     |   |             | $      | 200,000     |           |   | $      | 150,000             |   |   | $ | 100,000 |   |
|                                                      |   |             |        |   |             |   |        |           |   |   |                |   |   |   |   |   |
| Targeted Free Cash Flow Goal                              |   |             | 58,221,000  |   |             |   | 58,221,000  |           |   |   | 58,221,000          |   |   |   | 58,221,000 |   |
| Actual Free Cash Flow                                     |   |             | 153,854,000 |   |             |   | 153,854,000 |           |   |   | 153,854,000         |   |   |   | 153,854,000 |   |
| Free Cash Flow Goal Achievement                           |   |             | 264         | %      |             |   | 264         | %              |   |   | 264                 | %      |   |   | 264 | % |
| 2010 Free Cash Flow Incentive Compensation Earned         |   | $                | 1,321,293   |   |             | $      | 528,517     |           |   | $      | 396,388             |   |   | $ | 264,259 |   |
|                                                      |   |             |        |   |             |   |        |           |   |   |                |   |   |   |   |   |
| Capex Spending – Target Incentive Compensation      |   |             | 200,000     |   |             |   | 100,000     |           |   |   | 50,000              |   |   |   | 25,000 |   |
| Capex Spending Achievement                                |   |             | 100         | %      |             |   | 100         | %              |   |   | 100                 | %      |   |   | 100 | % |
| 2010 Capex Spending Incentive Compensation Earned         |   | $                | 200,000     |   |             | $      | 100,000     |           |   | $      | 50,000              |   |   | $ | 25,000 |   |
|                                                      |   |             |        |   |             |   |        |           |   |   |                |   |   |   |   |   |
| Discretionary – Target Incentive Compensation       |   |             | 750,000     |   |             |   | 166,667     |           |   |   | 150,000             |   |   |   | 225,000 |   |
| Discretionary Achievement                                 |   |             | 112         | %      |             |   | 126         | %              |   |   | 92                  | %      |   |   | 112 | % |
| 2010 Discretionary Incentive Compensation Earned          |   | $                | 837,500     |   |             | $      | 209,584     |           |   | $      | 137,500             |   |   | $ | 251,250 |   |
|                                                      |   |             |        |   |             |   |        |           |   |   |                |   |   |   |   |   |
| 2010 Short-Term Incentive Compensation Earned             |   | $                | 2,358,793   |   |             | $      | 838,101     |           |   | $      | 583,888             |   |   | $ | 540,509 |   |

| Name                |   | Free Cash Flow Goal($) |    |   | Capex Spending($) |   |    | Discretionary($) |   |   | 2011 Short-TermIncentive Compensation Plan Target($) |   |
|---------------------|--------|------------------------|---------|--------|-------------------|--------|---------|------------------|--------|--------|------------------------------------------------------|--------|
| Ronald A. Duncan    |   |                   | 350,000 |   |              |   | 200,000 |             |   |   | 900,000                                              |   |   |   | 1,450,000 |   |
| G. Wilson Hughes    |   |                   | 200,000 |   |              |   | 100,000 |             |   |   | 166,667                                              |   |   |   | 466,667 |   |
| John M. Lowber      |   |                   | 125,000 |   |              |   | 50,000  |             |   |   | 175,000                                              |   |   |   | 350,000 |   |
| Gregory F. Chapados |   |                   | 100,000 |   |              |   | 25,000  |             |   |   | 225,000                                              |   |   |   | 350,000 |   |

----

| Name                |   | Minimum Payments($) |   |   | Target Payments($) |   |      | Maximum Payments($) |   |
|---------------------|--------|---------------------|--------|--------|--------------------|--------|-----------|---------------------|--------|
| Ronald A. Duncan    |   |                | 0      |   |               |   | 1,400,000 |                |   |   | 2,800,000 |   |
| G. Wilson Hughes    |   |                | 0      |   |               |   | 1,000,000 |                |   |   | 2,000,000 |   |
| John M. Lowber      |   |                | 0      |   |               |   | 800,000   |                |   |   | 1,600,000 |   |
| Gregory F. Chapados |   |                | 0      |   |               |   | 800,000   |                |   |   | 1,600,000 |   |

| Name                |   | If 2011 Adjusted EBITDA is below $225 million($) |   |   | If 2011 Adjusted EBITDA is above $225 million but below $250 million($) |   |    | If 2011 Adjusted EBITDA is above $250 million($) |   |
|---------------------|--------|--------------------------------------------------|--------|--------|-------------------------------------------------------------------------|--------|---------|--------------------------------------------------|--------|
| Ronald A. Duncan    |   |                                             | 0      |   |                                                                    |   | 700,000 |                                             |   |   | 1,050,000 |   |
| G. Wilson Hughes    |   |                                             | 0      |   |                                                                    |   | 500,000 |                                             |   |   | 750,000 |   |
| John M. Lowber      |   |                                             | 0      |   |                                                                    |   | 400,000 |                                             |   |   | 600,000 |   |
| Gregory F. Chapados |   |                                             | 0      |   |                                                                    |   | 400,000 |                                             |   |   | 600,000 |   |

----

----

| ·   | Use of Company Leased Aircraft – The Company permits employees, including the Named Executive Officers, to use Company aircraft for personal travel for themselves and their guests.  Such travel generally is limited to a space available basis on flights that are otherwise business-related.  Where a Named Executive Officer, or a guest of that officer, flies on a space available basis, the additional variable cost to the Company (such as fuel, catering, and landing fees) is de minimus.  As a result, no amount is reflected in the Summary Compensation Table for that flight.  Where the additional variable cost to the Company occurs on such a flight for solely personal purposes of that Named Executive Officer or guest, that cost is included in the Summary Compensation Table entry for that officer.  Because it is rare for a flight to be purely personal in nature, fixed costs (such as hangar expenses, crew salaries and monthly leases) are not included in the Summary Compensation Table.  In any case, in the event such a cost is non-deductible by the Company under the Internal Revenue Code, the value of that lost deduction is included in the Summary Compensation Table entry for that Named Executive Officer.  When employees, including the Named Executive Officers, use Company aircraft for such travel they are attributed with taxable income in accordance with regulations pursuant to the Internal Revenue Code.  The Company does not "gross up" or reimburse an employee for taxes he or she owes on such attributed income.  Messrs. Duncan, Hughes and Landes have made use of the aircraft for personal travel, the variable cost, if any, of which is included in their respective entries in the Summary Compensation Table.  See "Part III – Item 11 – Executive Compensation:  Summary Compensation Table." |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Enhanced Long Term Disability Benefit – The Company provides the Named Executive Officers and other senior executive officers of the Company with an enhanced long term disability benefit.  This benefit provides a supplemental replacement income benefit of 60% of average monthly compensation capped at $10,000 per month.  The normal replacement income benefit applying to other of our employees is capped at $5,000 per month. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Enhanced Short Term Disability Benefit – The Company provides the Named Executive Officers and other senior executive officers of the Company with an enhanced short term disability benefit.  This benefit provides a supplemental replacement income benefit of 66 2/3% of average monthly compensation, capped at $2,300 per week.  The normal replacement income benefit applying to other of our employees is capped at $1,150 per week. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Miscellaneous – Aside from benefits offered to its employees generally, the Company provided miscellaneous other benefits to its Named Executive Officers including the following (see "Part III – Item 11 – Executive Compensation:  Summary Compensation Table – Components of 'All Other Compensation'"): |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Success Sharing – An incentive program offered to all of our employees that shares 15% of the excess earnings before interest, taxes, depreciation, amortization and share based compensation expense over the highest previous year ("Success Sharing"). |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Tax Reimbursement – Provided to all of our employees, including the Named Executive Officers, from time to time, on $100 longevity stock awards. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Board Fees – Provided to Mr. Duncan as one of our directors. The Compensation Committee believes that it is appropriate to provide such board fees to Mr. Duncan given the additional oversight responsibilities and the accompanying liability incumbent upon members of our board.  In determining the appropriate amount of overall compensation payable to Mr. Duncan in his capacity as  Chief Executive Officer, the Compensation Committee does take into account any such board fees that are payable to Mr. Duncan.  This monitoring of Mr. Duncan's overall compensation package for services rendered as Chief Executive Officer and as a director is done to ensure that Mr. Duncan is not being doubly compensated for the same services rendered to the Company. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| Name andPrincipal Position                                                                                                         | Year         | Salary1($)              | Bonus($)                    | Nonequity Incentive PlanCompen-sation($) | StockAwards2($)              | Option Awards2($)                         | Change in Pension Value and Nonqualified Deferred Compensation Earnings3($) | All Other Compensation($)4     | Total($)                    |
|------------------------------------------------------------------------------------------------------------------------------------|--------------|-------------------------|-----------------------------|------------------------------------------|------------------------------|-------------------------------------------|-----------------------------------------------------------------------------|--------------------------------|-----------------------------|
| Ronald A. Duncan5  President and Chief  Executive Officer                                                      | 201020092008 | 600,000600,000600,000   | 454,3976400,000400,000      | 725,000350,000350,000                    | 33,74436,50024,509           | 433,635  - - -  - - - |  - - - - - - - - -                                           | 64,24984,48969,229             | 2,311,0251,470,9891,443,738 |
| G. Wilson Hughes  Executive Vice  President and  General Manager                                     | 201020092008 | 487,500486,4597462,5007 | 185,7176102,000103,000      | 233,333150,000100,000                    |  - - -32,453 - - - | - - - - - -438,680                   | 6,15310,8997,556                                                            | 18,238  25,28124,268 | 930,941807,0921,136,004     |
| John M. Lowber  Senior Vice President,  Chief Financial Officer  and Secretary/  Treasurer | 201020092008 | 728,709325,000325,000   | 116,944625,000103,000       | 175,000100,000100,000                    | 323,25155,428 - - -     | - - - - - - - - -               |  - - - - - - 646                                             | 18,23825,28124,268             | 1,362,142530,709552,914     |
| Gregory F. Chapados  Senior Vice President                                                                               | 201020092008 | 270,000240,000240,000   | 95,254653,000104,000        | 175,000100,000100,000                    | 844,750172,471- - -          | - - -- - -438,680                         | - - -- - -- - -                                                             | 16,45624,59443,771             | 1,401,460590,065926,451     |
| Paul E. Landes  Vice President and General Manager – Consumer  Services                                  | 201020092008 | 150,000150,000150,000   | - - - - - - - - - | 726,366664,671343,700                    | - - -12,842- - -             | - - -- - -216,730                         | - - -- - -- - -                                                             | 20,13126,93324,585             | 896,497854,446735,015       |

| 1 | For 2008 and 2009, salary includes deferred compensation of $225,000 and $65,000 for Messrs. Hughes and Lowber, respectively.  For 2010, salary includes deferred compensation of $125,000 for Mr. Hughes and $468,709 for Mr. Lowber of which $403,709 for Mr. Lowber reflects the vesting of a multi-year retention agreement. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | This column reflects the grant date fair values of awards of Class A common stock, restricted stock awards or stock options granted in the fiscal year indicated which were computed in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 718, Compensation – Stock Options ("ASC Topic 718"). Assumptions used in the calculation of these amounts are set forth in Footnote 9 of "Part II – Item 8 – Consolidated Financial Statements and Supplementary Data." |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | The amount shown represents the above-market earnings on nonqualified deferred compensation plan balances. Above market-earnings is defined as earnings in excess of 120% of the long-term monthly applicable federal rate (AFR). |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | See, "Components of 'All Other Compensation'" table displayed below for more detail. |
|---|--------------------------------------------------------------------------------------|

| 5 | In 2008, Mr. Duncan received $64,509 in compensation relating to his service on our board including $40,000 in board fees and stock awards valued at $24,509.  In 2009, Mr. Duncan received $76,500 in compensation for service on our board in the form of director fees of $40,000 and stock awards valued at $36,500.  In 2010, Mr. Duncan received $73,744 in compensation relative to his service on our board including $40,000 in board fees and stock awards valued at $33,744. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | The Bonus Compensation represents compensation paid pursuant to the Incentive Compensation Plan in excess of the maximum payment under the plan. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7 | For 2008 and 2009, includes $37,500 for Mr. Hughes representing the amount vested during each of 2008 and 2009 pursuant to prepaid retention agreements. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

| Name andPrincipal Position | Year         | Stock PurchasePlan1($) | BoardFees($)                | Success Sharing2($)   | Use of Company LeasedAircraft3($) | Miscellan-eous4($)                                                                                                                                                                                  | Total($)           |
|----------------------------|--------------|------------------------|-----------------------------|-----------------------|-----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| Ronald A. Duncan           | 201020092008 | 13,49023,33423,000     | 40,00040,00040,000          | - - -- - - - - - | 10,75921,1556,229                 |           - - -          - - -          - - - | 64,24984,48969,229 |
| G. Wilson Hughes           | 201020092008 | 15,33423,33423,000     | - - - - - - - - - | 2,9041,9471,268       |  - - - - - - - - - |           - - -          - - -          - - - | 18,23825,28124,268 |
| John M. Lowber             | 201020092008 | 15,33423,33423,000     | - - -- - -- - -             | 2,9041,9471,268       | - - - - - - - - -       |           - - -          - - -          - - - | 18,23825,28124,268 |
| Gregory F. Chapados        | 201020092008 | 13,55222,64721,670     | - - -- - -- - -             | 2,9041,9471,268       | - - -- - -- - -                   |           - - -          - - -     20,0004                             | 16,45624,59443,771 |
| Paul E. Landes             | 201020092008 | 16,50024,50023,000     | - - - - - - - - - | 3,6312,4331,585       | - - - - - - - - -       |           - - -          - - -          - - - | 20,13126,93324,585 |

| 1 | Amounts are contributions by us matching each employee's contribution.  Matching contributions by us under our GCI 401(k) Plan are available to each of our full time employees with over one year of service.  During 2010, the match was based upon the lesser of $16,500 ($24,500 for 2009 and $23,000 for 2008), 10% of the employee's salary and the total of the employee's pre-tax and post-tax contributions to the plan.  See "Part III – Item 11 – Compensation Discussion and Analysis:  Elements of Compensation – Retirement and Welfare Benefits – GCI 401(k) Plan."  The match for 2010 is reduced by an estimated amount that will be returned to us following completion of the annual discrimination tests. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | The value for 2010 is based upon an estimate that is to be finalized subsequent to the filing of this report.  See "Part III – Item 11 – Compensation Discussion and Analysis:  Elements of Compensation – Perquisites." |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | The value of use of Company leased aircraft are shown at variable cost to the Company. |
|---|----------------------------------------------------------------------------------------|

| 4 | Includes for Mr. Chapados vesting of a $20,000 portion of a $100,000 signing bonus received in 2006. |
|---|------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

----

| Name                | Grant Date                | Estimated Future PayoutsUnderNon-Equity Incentive Plan Awards |                | Estimated Future PayoutsUnderEquity Incentive Plan Awards | All OtherStockAwards:Number ofSharesof Stockor Units | All OtherOptionAwards:Number of SecuritiesUnderlyingOptions | Exerciseor BasePrice ofOptionAwards($/Sh) | Grant DateFair Value of Stock and Option Awards1($) |
|---------------------|---------------------------|---------------------------------------------------------------|---------------------|-----------------------------------------------------------|------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------|-----------------------------------------------------|
|                |                      | Threshold($)                                                  | Target($)2          | Maximum($)3                                               |                                                 | Threshold(#)                                                | Target(#)                                 | Maximum(#)                                          | (#) | (#) |   |   |
| Ronald A. Duncan    | 02/08/1006/01/1010/07/105 | - - -- - -- - -                                               | - - -- - -3,600,000 | - - -- - -4,300,000                                       |                                                 | - - -- - -- - -                                             | - - -- - -- - -                           | - - -- - -- - -                                     |   - - -    5,7004- - - | 150,000- - -- - - | 5.32- - -- - - |  433,635   33,744- - - |
| G. Wilson Hughes    | 10/07/10                  | - - -                                                         | 1,200,000           | 1,700,000                                                 |                                                 | - - -                                                       | - - -                                     | - - -                                               | - - - | - - - | - - - | - - - |
| John M. Lowber      | 02/08/1010/07/105         | - - -- - -                                                    | - - -1,100,000      | - - -1,500,000                                            |                                                 | - - -- - -                                                  | - - -- - -                                | - - -- - -                                          | 14,09825,000 | - - -- - - | - - -- - - |   75,001248,250 |
| Gregory F. Chapados | 02/08/1010/07/105         | - - -- - -                                                    | - - -1,100,000      | - - -1,500,000                                            |                                                 | - - -- - -                                                  | - - -- - -                                | - - -- - -                                          | 18,79775,000 | - - - | - - - | 100,000744,250 |
| Paul E. Landes      | 10/07/105                 | - - -                                                         | - - -               | - - -                                                     |                                                 | - - -                                                       | - - -                                     | - - -                                               | - - - | - - - | - - - | - - - |

| 1 | Computed in accordance with FASB ASC Topic 718. |
|---|-------------------------------------------------|

| 2 | Represents target cash payout under our Incentive Compensation Plan for 2010 through 2013 (except for Mr. Landes, who was not provided with a target payout).  Actual amounts paid with respect to 2010 are included in the "Non-Equity Plan Compensation" and "Bonus" columns of the Summary Compensation Table above.  Although a target payout is provided and certain performance goals are established, the Compensation Committee retains complete discretionary authority to adjust the compensation paid at the end of the year.  The business measurements and performance goals evaluated by the Compensation Committee for determining the payout amounts are described above under "Compensation Discussion and Analysis – Elements of Compensation – Incentive Compensation Plan." |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Represents maximum cash payout under our Incentive Compensation Plan for 2010 through 2013.  Although a maximum payout is provided, the Compensation Committee retains complete discretionary authority to change the maximum payout. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Mr. Duncan's stock award was granted pursuant to the terms of our Director Compensation Plan.  See "Part III – Item 11 – Director Compensation." |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | The Incentive Compensation Plan will be paid to the Named Executive Officer in the form of cash and restricted stock grants.  The restricted grants are not reflected as there is no grant date per FASB ASC Topic 718.  The restricted stock grant will be disclosed in future years when the shares are granted. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                                                           | Option Awards1                                                                                                                                                                                                                                           | Stock Awards                                                                                                                                                                                                                                                              |
|----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number of SecuritiesUnderlyingUnexercisedOptions(#)Exercisable | Number ofSecuritiesUnderlyingUnexercisedOptions (#) Unexercisable                                                                                                                                                                                        | OptionExercisePrice($)                                                                                                                                                                                                                                                    | OptionExpirationDate | Number of Shares orUnits of StockThat Have NotVested (#) | Market Valueof Shares orUnits of Stockthat HaveNot Vested     ($) | Equity Incentive Plan Awards:  Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards:  Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) |
| Ronald A. Duncan                                               |     150,000    250,000       - - -       - - -                                                                                             |        - - -       - - -   150,000       - - -                                                                                                    | 7.258.405.32- - - | 02/08/1206/24/1402/08/20- - - |         - - -        - - -        - - -     75,0002 |        - - -       - - -       - - -   949,5002 |        - - -       - - -       - - -       - - - |        - - -       - - -       - - -       - - - |
| G. Wilson Hughes                                               |        - - -                                                                                                                                                                                                          |        - - -                                                                                                                                                                                                                           | - - - | - - - |    218,2993 |  2,763,6653 |        - - - |        - - - |
| John M. Lowber                                                 |        - - -       - - -       - - -                                                                                                            |        - - -       - - -       - - -                                                                                                                             | - - - - - - - - - | - - -- - -- - - |    226,0783     14,0984     25,0005 |  2,862,1483    178,4814    316,5005 |        - - -       - - -       - - - |        - - -       - - -       - - - |
| Gregory F. Chapados                                            |     30,000    50,000       - - -       - - -       - - -       - - - |        - - -    50,000       - - -       - - -       - - -       - - - | 6.007.95     - - -     - - -     - - -     - - - | 02/10/1301/09/18- - -- - -- - -- - - |       - - -      - - -    18,7974    25,0006    50,0007  136,7193 |       - - -       - - -   237,9704   316,5006   633,00071,730,8633 |        - - -       - - -       - - -       - - -       - - -       - - - |        - - -       - - -       - - -       - - -       - - -       - - - |
| Paul E. Landes                                                 |        - - -                                                                                                                                                                                                          |        - - -                                                                                                                                                                                                                           | - - - | - - - |     56,1933 |    711,4033 |        - - - |        - - - |

| 1   | Stock option awards generally vest over five years and expire ten years from grant date, except as noted in the footnotes below. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------|

| 2   | Stock Award vests on February 19, 2011. |
|---------------|-----------------------------------------|

| 3   | Restricted stock vests 50% on December 20, 2011 and 50% on February 28, 2012. |
|---------------|-------------------------------------------------------------------------------|

| 4   | Restricted stock vests on February 8, 2013. |
|---------------|---------------------------------------------|

| 5   | Restricted stock vests on December 31, 2013. |
|---------------|----------------------------------------------|

| 6   | Restricted stock vests 5,000 shares on October 7 of 2011, 2012, 2013, 2014 and 2015. |
|---------------|--------------------------------------------------------------------------------------|

| 7   | Restricted stock vests on October 7, 2015. |
|---------------|--------------------------------------------|

----

|                | Option Awards                            |                          | Stock Awards |
|---------------------|------------------------------------------|-------------------------------|--------------|
| Name                | Number of SharesAcquired on Exercise (#) | Value Realized on Exercise($) |         | Number of SharesAcquired on Vesting (#) | Value Realized on Vesting($) |
| Ronald A. Duncan    | - - -- - -                               | - - -- - -                    |         |    5,700175,000 |   33,744428,250 |
| G. Wilson Hughes    | - - -                                    | - - -                         |         | - - - | - - - |
| John M. Lowber      | - - -                                    | - - -                         |         | - - - | - - - |
| Gregory F. Chapados | - - -                                    | - - -                         |         | - - - | - - - |
| Paul E. Landes      | - - -                                    | - - -                         |         | - - - | - - - |

| 1 | This stock award relates to Mr. Duncan's service as one of our directors. |
|---|---------------------------------------------------------------------------|

----

| Name                | ExecutiveContributionsin Last FY($) | RegistrantContributionin Last FY($) | AggregateEarnings (Loss)in Last FY($) | AggregateWithdrawals/Distributions($) | AggregateBalanceat Last FY($) |
|---------------------|-------------------------------------|-------------------------------------|---------------------------------------|---------------------------------------|-------------------------------|
| Ronald A. Duncan    | - - -                               | - - -                               | - - -                                 | - - -                                 | - - -                         |
| G. Wilson Hughes1   | 125,000                             | - - -                               | 1,446,364                             | - - -                                 | 3,869,939                     |
| John M. Lowber      |   65,000                  | 403,709                             |     56,312        | 200,000                               | 1,150,707                     |
| Gregory F. Chapados | - - -                               | - - -                               | - - -                                 | - - -                                 | - - -                         |
| Paul E. Landes      | - - -                               | - - -                               | - - -                                 | - - -                                 | - - -                         |

| 1 | Includes earnings of $6,153 for Mr. Hughes that is reported in the Summary Compensation Table. |
|---|------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

----

| Name               |   | FeesEarnedorPaid inCash($) |   |   | StockAwards2,3($) |   |   | OptionAwards3($) |   |   | Non-EquityIncentive PlanCompensation($) |   |   | Change inPensionValue and NonqualifiedDeferredCompensationEarnings($) |   |   | All OtherCompensation($) |   |   | Total($) |   |
|--------------------|--------|----------------------------|--------|--------|-------------------|--------|--------|------------------|--------|--------|-----------------------------------------|--------|--------|----------------------------------------------------------------------------|--------|--------|--------------------------|--------|--------|----------|--------|
| Stephen M. Brett   |   |                       | 40,000 |   |              |   | 33,744 |             |   |   | - - -                                   |   |   |                                                                       | - - -  |   |                     |   | - - -  |     |   |   | - - - |   |   |   | 73,744 |   |
| Jerry A. Edgerton  |   |                       | 40,000 |   |              |   | 33,744 |             |   |   | - - -                                   |   |   |                                                                       | - - -  |   |                     |   | - - -  |     |   |   | - - - |   |   |   | 73,744 |   |
| Scott M. Fisher    |   |                       | 40,000 |   |              |   | 33,744 |             |   |   | - - -                                   |   |   |                                                                       | - - -  |   |                     |   | - - -  |     |   |   | - - - |   |   |   | 73,744 |   |
| William P. Glasgow |   |                       | 50,000 |   |              |   | 33,744 |             |   |   | - - -                                   |   |   |                                                                       | - - -  |   |                     |   | - - -  |     |   |   | - - - |   |   |   | 83,744 |   |
| Mark W. Kroloff    |   |                       | 40,000 |   |              |   | 33,744 |             |   |   | - - -                                   |   |   |                                                                       | - - -  |   |                     |   | - - -  |     |   |   | - - - |   |   |   | 73,744 |   |
| Stephen R. Mooney  |   |                       | 50,000 |   |              |   | 33,744 |             |   |   | - - -                                   |   |   |                                                                       | - - -  |   |                     |   | - - -  |     |   |   | - - - |   |   |   | 83,744 |   |
| James M. Schneider |   |                       | 50,000 |   |              |   | 42,624 |             |   |   | - - -                                   |   |   |                                                                       | - - -  |   |                     |   | - - -  |     |   |   | - - - |   |   |   | 92,624 |   |

| 1 | Compensation to Mr. Duncan as a director is described elsewhere in this report.  See "Part III – Item 11 – Executive Compensation" and "Compensation Discussion and Analysis." |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Each director received a grant of awards of 5,700 shares of Company Class A common stock on June 1, 2010, with the exception of our Audit Committee chair (Mr. Schneider) who received 7,200 shares.  The value of the shares on the date of grant was $5.92 per share, i.e., the closing price of the stock on Nasdaq on that date and as required in accordance with GAAP. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | This column reflects the grant date fair values of awards of Class A common stock, restricted stock awards or stock options granted in the fiscal year indicated which were computed in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are set forth in Footnote 9 of "Part II – Item 8 – Consolidated Financial Statements and Supplementary Data." |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

----

| Plan category                                            | Number of securitiesto be issued upon exercise of outstanding options, warrants and rights | Weighted-averageexercise price ofoutstanding options,warrants and rights($) | Number of securitiesremaining available for future issuance under equity compensation plans (excluding securities reflected in the second column) |
|----------------------------------------------------------|--------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity compensationplans approved bysecurity holders     | 1,249,050                                                                                  | 7.08                                                                        | 4,180,226                                                                                                                                         |
| Equity compensationplans not approved bysecurity holders | - - -                                                                                      | - - -                                                                       | - - -                                                                                                                                             |
| Total:                                                   | 1,249,050                                                                                  | 7.08                                                                        | 4,180,226                                                                                                                                         |

----

| ·   | Each person known by us to own beneficially 5% or more of the outstanding shares of Class A common stock or Class B common stock. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Each of our directors. |
|--------------------|------------------------|

| ·   | Each of the Named Executive Officers. |
|--------------------|---------------------------------------|

| ·   | All of our executive officers and directors as a group. |
|--------------------|---------------------------------------------------------|

|     Name ofBeneficial Owner1                                              |     Title ofClass2 |  Amount andNature ofBeneficialOwnership(#)                                                        |      % of Class                                   |   % of Total Shares Outstanding (Class A & B)2 |   % CombinedVotingPower(Class A & B)2 |
|-----------------------------------------------------------------------------------------------|----------------------------------------|--------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|-------------------------------------------------------------------|-----------------------------------------------------|
|  Stephen M. Brett                                                                        |  Class AClass B                   |        52,3503        - - - |  *- - -                                                               |  *                                                           |  *                                             |
|  Ronald A. Duncan                                                                        |  Class AClass B                   |   1,298,0143,4    661,8094                                               |    2.920.8                                                  |   4.1                                              |  10.4                                     |
|  Jerry A. Edgerton                                                                  |  Class AClass B                   |       27,3503       - - -             |  *- - -                                                               |  *                                                           |  *                                             |
|  Scott M. Fisher                                                                         |  Class AClass B                   |     114,9623,5   437,6885                                           |  *13.8                                                                |   1.1                                                   |   5.9                                     |
|  William P. Glasgow                                                                      |  Class AClass B                   |       77,2943,6        - - -     |  *- - -                                                               |  *                                                           |  *                                             |
|  Mark W. Kroloff                                                                         |  Class AClass B                   |       20,7003,7        - - -     |  *- - -                                                               |  *                                                           |  *                                        |
|  Stephen R. Mooney                                                                       |  Class AClass B                   |       38,0003        - - -       |  *- - -                                                               |  *                                                           |  *                                             |
|  James M. Schneider                                                                      |  Class AClass B                   |       38,2503         - - - |  *- - -                                                               |  *                                                           |  *                                             |
|  G. Wilson Hughes                                                                   |  Class AClass B                   |     618,0018       2,695                        |   1.4*                                                           |   1.3                                                   |  *                                        |
|  John M. Lowber                                                                          |  Class AClass B                   |      372,3439       6,2039                 |  **                                                                   |  *                                                           |  *                                        |
|  Gregory F. Chapados                                                                     |  Class AClass B                   |      326,43610        - - -           |  **                                                                   |  *                                                           |  *                                        |
|  Paul E. Landes                                                                          |  Class AClass B                   |       92,52911        - - -      |  *- - -                                                               |  *                                                           |  *                                             |
|  Black Rock, Inc.55 East 52nd StreetNew York, New York 10055                             |  Class AClass B                   |  4,345,918        - - -                              |  9.8- - -                                                             |   9.2                                                   |  5.7                                           |
|  GCI 401(k) Plan2550 Denali St., Ste. 1000Anchorage, AK 99503                            |  Class AClass B                   |   4,947,356      62,739                                        |  11.2  2.0                                                  |  10.6                                                        |    7.4                               |
|  Gary Magnessc/o Raymond L. Sutton, Jr.303 East 17th Ave., Ste 1100Denver, CO 80203-1264 |  Class AClass B              |   1,347,961    433,924                                              |    3.013.7                                             |    3.8                                             |    7.5                               |
|  Private ManagementGroup, Inc.20 Corporate Park, Suite 400Irvine, CA 92606               |  Class AClass B                   |  2,456,852        - - -                              |   5.6        - - -  |   5.2                                                   |   3.2                                     |

----

|  John W. Stanton andTheresa E. Gillespie155 108th Avenue., N.E.,Suite 450Bellevue, WA 98004 |  Class AClass B       |  2,342,6271,436,469     |    5.345.2 |    8.0 |  22.1 |
|--------------------------------------------------------------------------------------------------|----------------------------|------------------------------|---------------------------|-----------------------|------------|
|  All Directors and Executive  Officers As a Group  (18 Persons)         |  Class AClass B  |  3,626,815121,183,15612 |    8.237.2 |  10.0            |  20.3 |

| * | Represents beneficial ownership of less than 1% of the corresponding class or series of stock. |
|---|------------------------------------------------------------------------------------------------|

| 1 | Beneficial ownership is determined in accordance with Rule 13d-3 of the Exchange Act.  Shares of our stock that a person has the right to acquire within 60 days of December 31, 2010 are deemed to be beneficially owned by such person and are included in the computation of the ownership and voting percentages only of such person.  Each person has sole voting and investment power with respect to the shares indicated, except as otherwise stated in the footnotes to the table.  Addresses are provided only for persons other than management who own beneficially more than 5% of the outstanding shares of Class A or B common stock. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | "Title of Class" includes our Class A common stock and Class B common stock.  "Amount and Nature of Beneficial Ownership" and "% of Class" are given for each class of stock.  "% of Total Shares Outstanding" and "% Combined Voting Power" are given for the combination of outstanding Class A common stock and Class B common stock, and the voting power for Class B common stock (10 votes per share) is factored into the calculation of that combined voting power. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Includes 5,700 shares of our Class A common stock granted to each of those persons pursuant to the Director Compensation Plan for services performed during 2010 except for Mr. Schneider, who received 7,200 shares of our Class A common stock. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Includes 153,459 shares of Class A common stock and 6,165 shares of Class B common stock allocated to Mr. Duncan under the GCI 401(k) Plan as of December 31, 2010.  Includes 131 shares of Class A common stock held by Missy, LLC which is 25% owned by Mr. Duncan.  Includes 400,000 shares of Class A common stock subject to stock options granted under the Stock Option Plan to Mr. Duncan which he has the right to acquire within 60 days of December 31, 2010 by exercise of the stock options.  Does not include 35,560 shares of Class A common stock or 8,242 shares of Class B common stock held by the Amanda Miller Trust, with respect to which Mr. Duncan has no voting or investment power.  Ms. Miller is Mr. Duncan's daughter, and Mr. Duncan disclaims beneficial ownership of the shares.   Does not include 30,660 shares of Class A common stock or 27,020 shares of Class B common stock held by Dani Bowman, Mr. Duncan's wife, of which Mr. Duncan disclaims beneficial ownership.  Includes 512,499 shares of Class A common stock and 493,644 shares of Class B common stock pledged as security. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | Includes 87,512 shares of Class A and 437,688 shares of Class B common stock owned by Fisher Capital Partners, Ltd. of which Mr. Fisher is a partner. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | Does not include 158 shares owned by a daughter of Mr. Glasgow.  Mr. Glasgow disclaims any beneficial ownership of the shares held by his daughter. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | Includes 10,000 shares of Class A common stock owned jointly by Mr. Kroloff and his wife. |
|---|-------------------------------------------------------------------------------------------|

| 8 | Includes 5,188 shares of Class A common stock allocated to Mr. Hughes under the GCI 401(k) Plan, as of December 31, 2010.  Includes 325,890 shares of Class A common stock pledged as security.  Excludes 217,300 shares held by the Company pursuant to Mr. Hughes' Deferred Compensation Agreement. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9 | Includes 27,834 shares of Class A common stock and 5,933 shares of Class B common stock allocated to Mr. Lowber under the GCI 401(k) Plan, as of December 31, 2010. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | Includes 15,920 shares of Class A common stock allocated to Mr. Chapados under the GCI 401(k) Plan, as of December 31, 2010.  Includes 80,000 shares of Class A common stock subject to stock options granted under the Stock Option Plan to Mr. Chapados which he has the right to acquire within 60 days of December 31, 2010 by exercise of those options. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11 | Includes 36,299 shares of Class A common stock allocated to Mr. Landes under the GCI 401(k) Plan, as of December 31, 2010. |
|----|----------------------------------------------------------------------------------------------------------------------------|

| 12 | Includes 480,000 shares of Class A common stock which such persons have the right to acquire within 60 days of December 31, 2010 through the exercise of vested stock options.  Includes 358,020 shares of Class A common stock and 12,831 shares of Class B common stock allocated to such persons under the GCI 401(k) Plan. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

----

----

----

----

| ·   | Full Audit Committee – The full Audit Committee can consider each Non-Audit Service. |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | Designee – The Audit Committee can designate one of its members to approve a Non-Audit Service, with that member reporting approvals to the full committee. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pre-Approval of Categories – The Audit Committee can pre-approve categories of Non-Audit Services.  Should this option be chosen, the categories must be specific enough to ensure both of the following – |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Audit Committee knows exactly what it is approving and can determine the effect of such approval on auditor independence. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | Management will not find it necessary to decide whether a specific service falls within a category of pre-approved Non-Audit Service. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| Type of Fees        | 20101Grant Thornton | 20092                                                                   |
|---------------------|---------------------|-------------------------------------------------------------------------|
| Grant Thornton      | KPMG                |
| Audit Fees3         | $1,120,650          | $998,350                                                                | $998,825 |
| Audit-Related Fees4 | 16,116              |            - - - | 19,900 |
| Tax Fees5           | 134,721             | 64,211                                                                  | - - - |
| All Other Fees6     | 94,694              |    138,600                                               |     134,325 |
| Total               | $1,366,181          | $1,201,161                                                              | $1,153,050 |

| 1 | Grant Thornton was our External Accountant for this year. |
|---|-----------------------------------------------------------|

| 2 | KPMG was our External Accountant up to August 11, 2009, and Grant Thornton was our External Accountant for the balance of that year.  KPMG fees include charges subsequent to its dismissal. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Consists of fees for our annual financial statement audit, quarterly financial statement reviews, reviews of other filings by us with the SEC, audit of our internal control over financial reporting and for services that are normally provided by an auditor in connection with statutory and regulatory filings or engagements.  The audit fees included in the 2009 KPMG column include charges for our 2008 annual financial statement audit that were not previously reported. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4 | Consists of fees for audit of the GCI 401(k) Plan and review of the related annual report on Form 11-K filed with the SEC. |
|---|----------------------------------------------------------------------------------------------------------------------------|

| 5 | Consists of fees for review of our state and federal income tax returns and consultation on various tax advice and tax planning matters. |
|---|------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | Consists of fees for any services not included in the first three types of fees identified in the table.  In 2009, these fees were limited to ones pertaining to agreed upon procedures relating, in the case of Grant Thornton, totally to our debt refinancing effort, and relating, in the case of KPMG, primarily to that effort. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

----

|                                                                                                                                                                 |   |     |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|
| (I)  Consolidated Financial Statements                                                                                                                     |   | Page No. |   |
|                                                                                                                                                                 |   |     |   |
|          Included in Part II of this Report:                                                                            |   |     |   |
|                                                                                                                                                                 |   |     |   |
| Reports of Independent Registered Public Accounting Firms                                                                                                            |   |     | 101    |   |
|                                                                                                                                                                 |   |     |   |   |
| Consolidated Balance Sheets, December 31, 2010 and 2009                                                                                                              |   |     | 104    |   |
|                                                                                                                                                                 |   |     |   |   |
| Consolidated Statements of Operations, years ended December 31, 2010, 2009 and 2008                                                                                  |   |     | 106    |   |
|                                                                                                                                                                 |   |     |   |   |
| Consolidated Statements of Stockholders’ Equity, years ended December 31, 2010, 2009 and 2008                                                                  |   |     | 107    |   |
|                                                                                                                                                                 |   |     |   |   |
| Consolidated Statements of Cash Flows, years ended December 31, 2010, 2009 and 2008                                                                                  |   |     | 108    |   |
|                                                                                                                                                                 |   |     |   |   |
| Notes to Consolidated Financial Statements                                                                                                                           |   |     | 109    |   |
|                                                                                                                                                                 |   |     |   |   |
| (2)  Consolidated Financial Statement Schedules                                                                                                            |   |     |   |   |
|                                                                                                                                                                 |   |     |   |   |
| Schedules are omitted, as they are not required or are not applicable, or the required information is shown in the applicable financial statements or notes thereto. |   |     |   |   |
|                                                                                                                                                                 |   |     |   |   |
| (3) Exhibits                                                                                                                                                         |   |     | 147    |   |

----

----

|   | March 20, 2009 except for Note 13, |
|--------|------------------------------------|

|   | as to which the date is March 12, 2010 |
|--------|----------------------------------------|

----

----

|                                                                                                                                             |   |         |      |   |   |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|--------|-------------|
|                                                                                                                                             |   |
|                                                                                                                                             |   |
|                                                                                                                                             |   |         |      |   |   |        |
| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES                                                                                                     |   |
| CONSOLIDATED BALANCE SHEETS                                                                                                                      |   |
|                                                                                                                                             |   |
|                                                                                                                                             |   |         |      |   |   |        |
|                                                                                                                                             |   |         |      |   |   |        |
| (Amounts in thousands)                                                                                                                           |   | December 31, |      |
| ASSETS                                                                                                                                           |   | 2010         |      |   | 2009   |        |
|                                                                                                                                             |   |         |      |   |   |        |
| Current assets:                                                                                                                                  |   |         |      |   |   |        |
| Cash and cash equivalents                                                                                                                        |   | $            | 33,070    |   |   |        | 48,776 |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
| Receivables                                                                                                                                      |   |         | 132,856   |   |   |        | 147,859 |   |
| Less allowance for doubtful receivables                                                                                                          |   |         | 9,189     |   |   |        | 7,060 |   |
| Net receivables                                                                                                                                  |   |         | 123,667   |   |   |        | 140,799 |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
| Deferred income taxes                                                                                                                            |   |         | 10,145    |   |   |        | 17,618 |   |
| Prepaid expenses                                                                                                                                 |   |         | 5,950     |   |   |        | 4,491 |   |
| Inventories                                                                                                                                      |   |         | 5,804     |   |   |        | 9,278 |   |
| Other current assets                                                                                                                             |   |         | 3,940     |   |   |        | 5,872 |   |
| Total current assets                                                                                                                             |   |         | 182,576   |   |   |        | 226,834 |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
| Property and equipment in service, net of depreciation                                                                                           |   |         | 798,278   |   |   |        | 823,080 |   |
| Construction in progress                                                                                                                         |   |         | 31,144    |   |   |        | 26,161 |   |
| Net property and equipment                                                                                                                       |   |         | 829,422   |   |   |        | 849,241 |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
| Cable certificates                                                                                                                               |   |         | 191,635   |   |   |        | 191,565 |   |
| Goodwill                                                                                                                                         |   |         | 73,932    |   |   |        | 73,452 |   |
| Wireless licenses                                                                                                                                |   |         | 25,967    |   |   |        | 25,967 |   |
| Other intangible assets, net of amortization                                                                                                     |   |         | 17,717    |   |   |        | 19,561 |   |
| Deferred loan and senior notes costs, net of amortization  of $6,469 and $4,662 at December 31, 2010 and 2009,  respectively |   |         | 13,661    |   |   |        | 13,168 |   |
| Other assets                                                                                                                                     |   |         | 16,850    |   |   |        | 18,609 |   |
| Total other assets                                                                                                                               |   |         | 339,762   |   |   |        | 342,322 |   |
| Total assets                                                                                                                                     |   | $            | 1,351,760 |   |   |        | 1,418,397 |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
| See accompanying notes to consolidated financial statements.                                                                                     |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
|                                                                                                                                             |   |         |      |   |   | (Continued) |   |

----

| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES                                                                                                     |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                      |   |
| (Continued)                                                                                                                                      |   |
|                                                                                                                                             |   |
|                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                             |   |   |   |   |   |   |
| (Amounts in thousands)                                                                                                                           |   | December 31, |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                       |   | 2010 |   |   | 2009 |   |
|                                                                                                                                             |   |   |   |   |   |   |
| Current liabilities:                                                                                                                             |   |   |   |   |   |   |
| Current maturities of obligations under long-term debt and  capital leases                                                             |   | $ | 7,652 |   |   |   | 9,892 |   |
| Accounts payable                                                                                                                                 |   |   | 35,589 |   |   |   | 30,697 |   |
| Deferred revenue                                                                                                                                 |   |   | 17,296 |   |   |   | 21,404 |   |
| Accrued payroll and payroll related obligations                                                                                                  |   |   | 22,132 |   |   |   | 21,874 |   |
| Accrued interest                                                                                                                                 |   |   | 13,456 |   |   |   | 14,821 |   |
| Accrued liabilities                                                                                                                              |   |   | 12,557 |   |   |   | 15,037 |   |
| Subscriber deposits                                                                                                                              |   |   | 1,271 |   |   |   | 1,549 |   |
| Total current liabilities                                                                                                                        |   |   | 109,953 |   |   |   | 115,274 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Long-term debt, net                                                                                                                              |   |   | 779,201 |   |   |   | 771,247 |   |
| Obligations under capital leases, excluding current maturities                                                                                   |   |   | 84,144 |   |   |   | 89,279 |   |
| Obligation under capital lease due to related party                                                                                              |   |   | 1,885 |   |   |   | 1,876 |   |
| Deferred income taxes                                                                                                                            |   |   | 102,401 |   |   |   | 100,386 |   |
| Long-term deferred revenue                                                                                                                       |   |   | 49,175 |   |   |   | 52,342 |   |
| Other liabilities                                                                                                                                |   |   | 24,495 |   |   |   | 21,676 |   |
| Total liabilities                                                                                                                                |   |   | 1,151,254 |   |   |   | 1,152,080 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                                                    |   |   |   |   |   |   |   |   |
| Stockholders’ equity:                                                                                                                      |   |   |   |   |   |   |   |   |
| Common stock (no par):                                                                                                                           |   |   |   |   |   |   |   |   |
| Class A. Authorized 100,000 shares; issued 44,213 and                                                                                            |   |   |   |   |   |   |   |   |
| 51,899 shares at December 31, 2010 and 2009, respectively; outstanding 43,958 and 51,627 shares at December 31, 2010 and 2009, respectively      |   |   | 69,396 |   |   |   | 150,911 |   |
| Class B. Authorized 10,000 shares; issued and                                                                                                    |   |   |   |   |   |   |   |   |
| outstanding 3,178 and 3,186 shares at December 31, 2010 and 2009, respectively; convertible on a share-per-share basis into Class A common stock |   |   | 2,677 |   |   |   | 2,684 |   |
| Less cost of 255 and 272 Class A and Class B common                                                                                              |   |   |   |   |   |   |   |   |
| shares held in treasury at December 31, 2010 and 2009, respectively                                                                              |   |   | (2,249 | ) |   |   | (2,339 | ) |
| Paid-in capital                                                                                                                                  |   |   | 37,075 |   |   |   | 30,410 |   |
| Retained earnings                                                                                                                                |   |   | 93,607 |   |   |   | 84,651 |   |
| Total stockholders’ equity                                                                                                                 |   |   | 200,506 |   |   |   | 266,317 |   |
| Total liabilities and stockholders’ equity                                                                                                 |   | $ | 1,351,760 |   |   |   | 1,418,397 |   |
|                                                                                                                                             |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.                                                                                     |   |

----

| GENERAL COMMUNICATION, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS                                                        |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|
| YEARS ENDED DECEMBER 2010, 2009, AND 2008                                                                                                |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |   |
|                                                                                                                                     |   |   |   |   |   |   |
|                                                                                                                                     |   |   |   |   |   |   |
| (Amounts in thousands, except per share amounts)                                                                                         |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Revenues                                                                                                                                 |   | $ | 651,250 |   |   |   | 595,811 |   |   |   | 575,442 |   |
| Cost of goods sold (exclusive of depreciation and                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| amortization shown separately below)                                                                                                     |   |   | 207,817 |   |   |   | 193,676 |   |   |   | 203,058 |   |
| Selling, general and administrative expenses                                                                                             |   |   | 228,808 |   |   |   | 212,671 |   |   |   | 210,306 |   |
| Depreciation and amortization expense                                                                                                    |   |   | 126,114 |   |   |   | 123,362 |   |   |   | 114,369 |   |
|  Operating income                                                                                                                   |   |   | 88,511 |   |   |   | 66,102 |   |   |   | 47,709 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense (including amortization and write-off                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| of deferred loan fees)                                                                                                                   |   |   | (70,329 | ) |   |   | (58,761 | ) |   |   | (50,363 | ) |
| Interest and investment income                                                                                                           |   |   | 261 |   |   |   | 111 |   |   |   | 576 |   |
| Other                                                                                                                                    |   |   | - |   |   |   | - |   |   |   | (217 | ) |
|  Other expense, net                                                                                                                 |   |   | (70,068 | ) |   |   | (58,650 | ) |   |   | (50,004 | ) |
|    Income (loss) before income tax expense                                                                                |   |   | 18,443 |   |   |   | 7,452 |   |   |   | (2,295 | ) |
| Income tax expense                                                                                                                       |   |   | 9,488 |   |   |   | 3,936 |   |   |   | 1,077 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income (loss)                                                                                                      |   |   | 8,955 |   |   |   | 3,516 |   |   |   | (3,372 | ) |
| Net loss attributable to the non-controlling interest                                                                                    |   |   | - |   |   |   | - |   |   |   | 1,503 |   |
|   Net income (loss) attributable to General   Communication, Inc.                                               |   | $ | 8,955 |   |   |   | 3,516 |   |   |   | (1,869 | ) |
| Basic net income (loss) attributable to General  Communication, Inc. common stockholders per Class A  common share   |   | $ | 0.17 |   |   |   | 0.07 |   |   |   | (0.04 | ) |
| Basic net income (loss) attributable to General  Communication, Inc. common stockholders per Class B  common share   |   | $ | 0.17 |   |   |   | 0.07 |   |   |   | (0.04 | ) |
| Diluted net income (loss) attributable to General  Communication, Inc. common stockholders per Class A  common share |   | $ | 0.17 |   |   |   | 0.06 |   |   |   | (0.04 | ) |
| Diluted net income (loss) attributable to General  Communication, Inc. common stockholders per Class B  common share |   | $ | 0.17 |   |   |   | 0.06 |   |   |   | (0.04 | ) |
|                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements                                                                              |   |   |   |   |   |

----

| GENERAL COMMUNICATION, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY                                                   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008                                                                                                  |   |
|                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                          |   | Class A Common Stock |   |   | Class B Common Stock |   |   | Class A and B Shares Held in Treasury |   |   | Paid-in Capital |   |   | Retained Earnings |   |   | Non-controlling Interest |   |   | Total Stockholders’ Equity |   |
|                                                                                                                                          |
| (Amounts in thousands)                                                                                                                        |
| Balances at January 1, 2008                                                                                                                   |   |   | 155,980 |   |   |   | 2,751 |   |   |   | (3,448 | ) |   |   | 20,132 |   |   |   | 77,540 |   |   |   | 6,478 |   |   |   | 259,433 |   |
| Net loss                                                                                                                                      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,869 | ) |   |   | (1,503 | ) |   |   | (3,372 | ) |
| Acquisition of remaining shares of   non-controlling interest                                                                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (4,975 | ) |   |   | (4,975 | ) |
| Common stock retirements                                                                                                                      |   |   | (5,465 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,465 |   |   |   | - |   |   |   | - |   |
| Shares issued under stock option  plan                                                                                              |   |   | 415 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 415 |   |
| Issuance of restricted stock  awards                                                                                                |   |   | 331 |   |   |   | - |   |   |   | - |   |   |   | (331 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Share-based compensation  expense                                                                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,432 |   |   |   | - |   |   |   | - |   |   |   | 7,432 |   |
| Reclassification from treasury  stock to be held for general  corporate purposes to common  stock to be retired |   |   | - |   |   |   | - |   |   |   | 960 |   |   |   | - |   |   |   | (960 | ) |   |   | - |   |   |   | - |   |
| Other                                                                                                                                         |   |   | 1 |   |   |   | (45 | ) |   |   | 26 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (18 | ) |
| Balances at December 31, 2008                                                                                                                 |   |   | 151,262 |   |   |   | 2,706 |   |   |   | (2,462 | ) |   |   | 27,233 |   |   |   | 80,176 |   |   |   | - |   |   |   | 258,915 |   |
| Net income                                                                                                                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,516 |   |   |   | - |   |   |   | 3,516 |   |
| Common stock retirements                                                                                                                      |   |   | (950 | ) |   |   | (9 | ) |   |   | 9 |   |   |   | - |   |   |   | 950 |   |   |   | - |   |   |   | - |   |
| Shares issued under stock option  plan                                                                                              |   |   | 423 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 423 |   |
| Issuance of restricted stock  awards                                                                                                |   |   | 398 |   |   |   | - |   |   |   | - |   |   |   | (398 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Share-based compensation  expense                                                                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,575 |   |   |   | - |   |   |   | - |   |   |   | 3,575 |   |
| Other                                                                                                                                         |   |   | (222 | ) |   |   | (13 | ) |   |   | 114 |   |   |   | - |   |   |   | 9 |   |   |   | - |   |   |   | (112 | ) |
| Balances at December 31, 2009                                                                                                                 |   |   | 150,911 |   |   |   | 2,684 |   |   |   | (2,339 | ) |   |   | 30,410 |   |   |   | 84,651 |   |   |   | - |   |   |   | 266,317 |   |
| Net income                                                                                                                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,955 |   |   |   | - |   |   |   | 8,955 |   |
| Common stock repurchases and  retirements                                                                                           |   |   | (80,901 | ) |   |   |   |   |   |   | 94 |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | (80,807 | ) |
| Shares issued under stock option  plan                                                                                              |   |   | 659 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 659 |   |
| Issuance of restricted stock  awards                                                                                                |   |   | (1,280 | ) |   |   | - |   |   |   | - |   |   |   | 1,280 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Share-based compensation  expense                                                                                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,385 |   |   |   | - |   |   |   | - |   |   |   | 5,385 |   |
| Other                                                                                                                                         |   |   | 7 |   |   |   | (7 | ) |   |   | (4 | ) |   |   | - |   |   |   | 1 |   |   |   | - |   |   |   | (3 | ) |
| Balances at December 31, 2010                                                                                                                 |   |   | 69,396 |   |   |   | 2,677 |   |   |   | (2,249 | ) |   |   | 37,075 |   |   |   | 93,607 |   |   |   | - |   |   |   | 200,506 |   |
|                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements                                                                                   |   |

----

| GENERAL COMMUNICATION, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS            |   |
|----------------------------------------------------------------------------------------------|--------|
| YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008                                                 |   |
|                                                                                         |   |   |   |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |
| (Amounts in thousands)                                                                       |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Cash flows from operating activities:                                                        |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                            |   | $ | 8,955 |   |   |   | 3,516 |   |   |   | (3,372 | ) |
| Adjustments to reconcile net income (loss) to net cash                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| provided by operating activities, net of effect of acquisitions:                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization expense                                                        |   |   | 126,114 |   |   |   | 123,362 |   |   |   | 114,369 |   |
| Deferred income tax expense                                                                  |   |   | 9,488 |   |   |   | 3,936 |   |   |   | 1,077 |   |
| Share-based compensation expense                                                             |   |   | 6,733 |   |   |   | 2,804 |   |   |   | 7,278 |   |
| Other noncash income and expense items                                                       |   |   | 6,725 |   |   |   | 14,919 |   |   |   | 8,896 |   |
| Change in operating assets and liabilities, net of effect  of acquisitions         |   |   | 13,244 |   |   |   | (47,618 | ) |   |   | 47,087 |   |
| Net cash provided by operating activities                                                    |   |   | 171,259 |   |   |   | 100,919 |   |   |   | 175,335 |   |
| Cash flows from investing activities:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of property and equipment, including construction   period interest |   |   | (96,194 | ) |   |   | (120,983 | ) |   |   | (221,458 | ) |
| Purchase of businesses and non-controlling interest,  net of cash received         |   |   | (5,545 | ) |   |   | (109 | ) |   |   | (65,335 | ) |
| Purchase of marketable securities                                                            |   |   | 941 |   |   |   | (305 | ) |   |   | - |   |
| Proceeds from sale of marketable securities                                                  |   |   | (202 | ) |   |   | 613 |   |   |   | 4,800 |   |
| Insurance proceeds                                                                           |   |   | 990 |   |   |   | - |   |   |   | - |   |
| Purchases of other assets and intangible assets                                              |   |   | (4,712 | ) |   |   | (5,093 | ) |   |   | (8,974 | ) |
| Net cash used in investing activities                                                        |   |   | (104,722 | ) |   |   | (125,877 | ) |   |   | (290,967 | ) |
| Cash flows from financing activities:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of 2019 Senior Notes                                                                |   |   | - |   |   |   | 421,473 |   |   |   | - |   |
| Repayment of debt and capital lease obligations                                              |   |   | (35,974 | ) |   |   | (402,710 | ) |   |   | (10,248 | ) |
| Borrowing on long-term debt                                                                  |   |   | 6,206 |   |   |   | 3,884 |   |   |   | 114,486 |   |
| Payment of debt issuance costs                                                               |   |   | (2,300 | ) |   |   | (9,006 | ) |   |   | (2,118 | ) |
| Repurchase of common stock                                                                   |   |   | (80,807 | ) |   |   | - |   |   |   | - |   |
| Borrowing on Senior Credit Facility                                                          |   |   | 30,000 |   |   |   | 30,000 |   |   |   | 30,000 |   |
| Other                                                                                        |   |   | 632 |   |   |   | 189 |   |   |   | 342 |   |
| Net cash provided by (used in) financing activities                                          |   |   | (82,243 | ) |   |   | 43,830 |   |   |   | 132,462 |   |
| Net increase (decrease) in cash and cash equivalents                                         |   |   | (15,706 | ) |   |   | 18,872 |   |   |   | 16,830 |   |
| Cash and cash equivalents at beginning of period                                             |   |   | 48,776 |   |   |   | 29,904 |   |   |   | 13,074 |   |
| Cash and cash equivalents at end of period                                                   |   | $ | 33,070 |   |   |   | 48,776 |   |   |   | 29,904 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.                                 |   |   |   |   |   |   |   |   |   |   |   |   |

----

|   | (a) | Business |
|--------|-----|----------|

| ·   | Origination and termination of traffic in Alaska for certain common carriers, |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Cable television services throughout Alaska, |
|--------------------|----------------------------------------------|

| ·   | Competitive local access services throughout Alaska, |
|--------------------|------------------------------------------------------|

| ·   | Incumbent local access services in areas of rural Alaska, |
|--------------------|-----------------------------------------------------------|

| ·   | Long-distance telephone service, |
|--------------------|----------------------------------|

| ·   | Sale of postpaid and prepaid wireless telephone services and sale of wireless telephone handsets and accessories, |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | Data network services, |
|--------------------|------------------------|

| ·   | Internet access services, |
|--------------------|---------------------------|

| ·   | Wireless roaming for certain wireless carriers, |
|--------------------|-------------------------------------------------|

| ·   | Broadband services, including our SchoolAccess® offering to rural school districts, our ConnectMD® offering to rural hospitals and health clinics, and managed video conferencing, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Managed services to certain commercial customers, |
|--------------------|---------------------------------------------------|

| ·   | Sales and service of dedicated communications systems and related equipment, and |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Lease, service arrangements and maintenance of capacity on our fiber optic cable systems used in the transmission of voice and data services within Alaska and between Alaska and the remaining United States and foreign countries. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Principles of Consolidation |
|--------|-----|-----------------------------|

|   | (c) | Acquisitions |
|--------|-----|--------------|

|   |   |
|--------|--------|

----

|            |   |                                        |   |   |        |   |   |                                        |   |
|-----------------|--------|---------------------------------------------|--------|--------|-------------|--------|--------|---------------------------------------------|--------|
|            |   | As Originally Reported at December 31, 2008 |   |   | Adjustments |   |   | Revised Purchase Price at December 31, 2010 |   |
| UUI and Unicom  |   | $                                           | 40,575 |   |        |   | 977    |                                        |   |   | 41,552 |   |
| Alaska Wireless |   | $                                           | 14,508 |   |        |   | 5,157  |                                        |   |   | 19,665 |   |
| Alaska DigiTel  |   | $                                           | 10,434 |   |        |   | -      |                                        |   |   | 10,434 |   |

----

|                                                                  |   |                                     |   |   |        |   |   |                                 |   |   |        |   |   |                                 |   |
|-----------------------------------------------------------------------|--------|------------------------------------------|--------|--------|-------------|--------|--------|--------------------------------------|--------|--------|-------------|--------|--------|--------------------------------------|--------|
|                                                                  |   | Originally Recorded at December 31, 2008 |   |   | Adjustments |   |   | Revised Balance at December 31, 2009 |   |   | Adjustments |   |   | Revised Balance at December 31, 2010 |   |
| Current assets                                                        |   | $                                        | 15,008 |   |        |   | -      |                                 |   |   | 15,008      |   |   |                                 | -      |   |   |   | 15,008 |   |
| Property and equipment,  including construction in progress |   |                                     | 59,629 |   |        |   | 68     |                                 |   |   | 59,697      |   |   |                                 | -      |   |   |   | 59,697 |   |
| Intangible assets                                                     |   |                                     | 8,175  |   |        |   | -      |                                 |   |   | 8,175       |   |   |                                 | -      |   |   |   | 8,175 |   |
| Wireless licenses                                                     |   |                                     | 100    |   |        |   | -      |                                 |   |   | 100         |   |   |                                 | -      |   |   |   | 100 |   |
| Goodwill                                                              |   |                                     | 9,102  |   |        |   | 1,427  |                                 |   |   | 10,529      |   |   |                                 | 480    |   |   |   | 11,009 |   |
| Deferred income taxes                                                 |   |                                     | -      |   |        |   | 679    |                                 |   |   | 679         |   |   |                                 | -      |   |   |   | 679 |   |
| Other assets                                                          |   |                                     | 3,106  |   |        |   | -      |                                 |   |   | 3,106       |   |   |                                 | -      |   |   |   | 3,106 |   |
| Total assets acquired                                                 |   |                                     | 95,120 |   |        |   | 2,174  |                                 |   |   | 97,294      |   |   |                                 | 480    |   |   |   | 97,774 |   |
| Current liabilities                                                   |   |                                     | 4,916  |   |        |   | 96     |                                 |   |   | 5,012       |   |   |                                 | -      |   |   |   | 5,012 |   |
| Long-term debt, including  current portion                  |   |                                     | 43,614 |   |        |   | -      |                                 |   |   | 43,614      |   |   |                                 | -      |   |   |   | 43,614 |   |
| Other long-term liabilities                                           |   |                                     | 4,335  |   |        |   | 1,581  |                                 |   |   | 5,916       |   |   |                                 | -      |   |   |   | 5,916 |   |
| Total liabilities assumed                                             |   |                                     | 52,865 |   |        |   | 1,677  |                                 |   |   | 54,542      |   |   |                                 | -      |   |   |   | 54,542 |   |
| Net assets acquired                                                   |   | $                                        | 42,255 |   |        |   | 497    |                                 |   |   | 42,752      |   |   |                                 | 480    |   |   |   | 43,232 |   |

| Current assets                                             |   | $      | 2,220  |   |
|------------------------------------------------------------|--------|--------|--------|--------|
| Property and equipment, including construction in progress |   |   | 6,015  |   |
| Intangible assets                                          |   |   | 1,468  |   |
| Wireless licenses                                          |   |   | 4,396  |   |
| Goodwill                                                   |   |   | 4,534  |   |
| Other assets                                               |   |   | 1      |   |
| Total assets acquired                                      |   |   | 18,634 |   |
| Current liabilities                                        |   |   | 2,588  |   |
| Long-term debt, including current portion                  |   |   | 5,515  |   |
| Other long-term liabilities                                |   |   | 97     |   |
| Total liabilities assumed                                  |   |   | 8,200  |   |
| Net assets acquired                                        |   | $      | 10,434 |   |

----

| Pro forma consolidated revenue |   | $      | 588,691 |   |
|--------------------------------|--------|--------|---------|--------|
| Pro forma net loss             |   | $      | (2,932  | )      |
|                           |   |   |    |   |
| EPS:                           |   |   |    |   |
| Basic – pro forma        |   | $      | (0.06   | )      |
| Diluted – pro forma      |   | $      | (0.06   | )      |

----

| ·   | For purposes of reporting fair value measurement for each class of assets and liabilities, a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Regulatory Accounting and Regulation |
|--------|-----|--------------------------------------|

|   | (g) | Earnings per Common Share |
|--------|-----|---------------------------|

----

|                                                                                                      |   |              |   |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                                      |   | Year Ended        |   |
|                                                                                                      |   | December 31, 2010 |   |
|                                                                                                      |   | Class A           |   |   | Class B |   |
| Basic net income per share:                                                                               |   |              |   |   |   |   |
| Numerator:                                                                                                |   |              |   |   |   |   |
| Allocation of undistributed earnings                                                                      |   | $                 | 8,420  |   |   |   | 535 |   |
|                                                                                                      |   |              |   |   |   |   |   |   |
| Denominator:                                                                                              |   |              |   |   |   |   |   |   |
| Weighted average common shares outstanding                                                                |   |              | 50,076 |   |   |   | 3,183 |   |
| Basic net income per share                                                                                |   | $                 | 0.17   |   |   |   | 0.17 |   |
|                                                                                                      |   |              |   |   |   |   |   |   |
| Diluted net income per share:                                                                             |   |              |   |   |   |   |   |   |
| Numerator:                                                                                                |   |              |   |   |   |   |   |   |
| Allocation of undistributed earnings for basic computation                                                |   | $                 | 8,420  |   |   |   | 535 |   |
| Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares             |   |              | 535    |   |   |   | - |   |
| Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares outstanding |   |              | -      |   |   |   | (2 | ) |
| Net income adjusted for allocation of undistributed earnings                                              |   | $                 | 8,955  |   |   |   | 533 |   |
|                                                                                                      |   |              |   |   |   |   |   |   |
| Denominator:                                                                                              |   |              |   |   |   |   |   |   |
| Number of shares used in basic computation                                                                |   |              | 50,076 |   |   |   | 3,183 |   |
| Conversion of Class B to Class A common shares outstanding                                                |   |              | 3,183  |   |   |   | - |   |
| Unexercised stock options                                                                                 |   |              | 167    |   |   |   | - |   |
| Number of shares used in per share computations                                                           |   |              | 53,426 |   |   |   | 3,183 |   |
| Diluted net income per share                                                                              |   | $                 | 0.17   |   |   |   | 0.17 |   |

----

|                                                                                                                                                                       |   |                     |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                                                                                                       |   | Years Ended December 31, |   |
|                                                                                                                                                                       |   | 2009                     |   |   | 2008 |   |
|                                                                                                                                                                       |   | Class A                  |   |   | Class B |   |   | Class A |   |   | Class B |   |
| Basic net income (loss) per share:                                                                                                                                         |   |                     |   |   |   |   |   |   |   |   |   |   |
| Numerator:                                                                                                                                                                 |   |                     |   |   |   |   |   |   |   |   |   |   |
| Allocation of undistributed earnings (losses)                                                                                                                              |   | $                        | 3,305  |   |   |   | 211 |   |   | $ | (1,754 | ) |   |   | (115 | ) |
|                                                                                                                                                                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                                                                               |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding                                                                                                                                 |   |                     | 50,159 |   |   |   | 3,195 |   |   |   | 49,080 |   |   |   | 3,241 |   |
| Basic net income (loss) attributable to GCI common stockholders per common share                                                                                      |   | $                        | 0.07   |   |   |   | 0.07 |   |   | $ | (0.04 | ) |   |   | (0.04 | ) |
|                                                                                                                                                                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted net income (loss) per share:                                                                                                                                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Numerator:                                                                                                                                                                 |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allocation of undistributed earnings (losses) for basic computation                                                                                                        |   | $                        | 3,305  |   |   |   | 211 |   |   | $ | (1,754 | ) |   |   | (115 | ) |
| Reallocation of undistributed earnings (losses) as a result of conversion of Class B to Class A shares                                                                |   |                     | 211    |   |   |   | - |   |   |   | (115 | ) |   |   | - |   |
| Reallocation of undistributed earnings (losses) as a result of conversion of Class B to Class A shares   outstanding                                                  |   |                     | -      |   |   |   | (29 | ) |   |   | - |   |   |   | - |   |
| Effect of share based compensation that may be settled in cash or shares                                                                                                   |   |                     | (454   | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Net income (loss) adjusted for allocation of undistributed earnings (losses) and effect of share based   compensation that may be settled in cash or shares |   | $                        | 3,062  |   |   |   | 182 |   |   | $ | (1,869 | ) |   |   | (115 | ) |
|                                                                                                                                                                       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                                                                               |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number of shares used in basic computation                                                                                                                                 |   |                     | 50,159 |   |   |   | 3,195 |   |   |   | 49,080 |   |   |   | 3,241 |   |
| Conversion of Class B to Class A common shares outstanding                                                                                                            |   |                     | 3,195  |   |   |   | - |   |   |   | 3,241 |   |   |   | - |   |
| Unexercised stock options                                                                                                                                                  |   |                     | 258    |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Effect of share based compensation that may be settled in cash or shares                                                                                              |   |                     | 236    |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Number of shares used in per share computations                                                                                                                            |   |                     | 53,848 |   |   |   | 3,195 |   |   |   | 52,321 |   |   |   | 3,241 |   |
| Diluted net income (loss) attributable to GCI common stockholders per common share                                                                                         |   | $                        | 0.06   |   |   |   | 0.06 |   |   | $ | (0.04 | ) |   |   | (0.04 | ) |

|                                                                                                           | Years Ended December 31, |   |
|----------------------------------------------------------------------------------------------------------------|--------------------------|--------|
|                                                                                                           | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Shares associated with anti-dilutive unexercised stock options                                                 |                     |   | 460 |   |   |   | 3,753 |   |   |   | 4,238 |   |
| Share-based compensation that may be settled in cash or shares, the effect of which is anti-dilutive |                     |   | 217 |   |   |   | - |   |   |   | 289 |   |
|                                                                                                           |                     |   | 677 |   |   |   | 3,753 |   |   |   | 4,527 |   |

----

|   | (h) | Common Stock |
|--------|-----|--------------|

|                                      |   | Class A |   |   | Class B |   |
|-------------------------------------------|--------|---------|--------|--------|---------|--------|
| Balances at January 1, 2008               |   |    | 50,437 |   |    |   | 3,257 |   |
| Class B shares converted to Class A       |   |    | 54     |   |    |   | (54 | ) |
| Shares issued upon stock option exercises |   |    | 71     |   |    |   | - |   |
| Share awards issued                       |   |    | 45     |   |    |   | - |   |
| Shares retired                            |   |    | (540   | )      |    |   | - |   |
| Other                                     |   |    | (5     | )      |    |   | - |   |
| Balances at December 31, 2008             |   |    | 50,062 |   |    |   | 3,203 |   |
| Class B shares converted to Class A       |   |    | 15     |   |    |   | (15 | ) |
| Shares issued upon stock option exercises |   |    | 77     |   |    |   | - |   |
| Share awards issued                       |   |    | 1,964  |   |    |   | - |   |
| Shares retired                            |   |    | (219   | )      |    |   | (2 | ) |
| Balances at December 31, 2009             |   |    | 51,899 |   |    |   | 3,186 |   |
| Class B shares converted to Class A       |   |    | 8      |   |    |   | (8 | ) |
| Shares issued upon stock option exercises |   |    | 116    |   |    |   | - |   |
| Share awards issued                       |   |    | 336    |   |    |   | - |   |
| Shares retired                            |   |    | (8,144 | )      |    |   | - |   |
| Other                                     |   |    | (2     | )      |    |   | - |   |
| Balances at December 31, 2010             |   |    | 44,213 |   |    |   | 3,178 |   |

|   | On October 21, 2010, we entered into a stock purchase agreement with Arctic Slope Regional Corporation (“ASRC”), pursuant to which GCI repurchased 7,486,240 shares of GCI’s Class A common stock for $10.16 per share, representing a total purchase price of $76.0 million.  Prior to the repurchase ASRC was a related party. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | Redeemable Preferred Stock |
|--------|-----|----------------------------|

|   | We have 1,000,000 shares of preferred stock authorized with no shares issued and outstanding at years ended December 31, 2010, 2009 and 2008. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | Treasury Stock |
|--------|-----|----------------|

|   | We account for treasury stock purchased for general corporate purposes under the cost method and include treasury stock as a component of Stockholders’ Equity.  Treasury stock purchased with intent to retire (whether or not the retirement is actually accomplished) is charged to Class A or Class B Common Stock. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | Cash Equivalents |
|--------|-----|------------------|

|   | Cash equivalents consist of overnight sweep investments and certificates of deposit which have an original maturity of three months or less at the date acquired and are readily convertible into cash. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Accounts Receivable and Allowance for Doubtful Receivables |
|--------|-----|------------------------------------------------------------|

|   | Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful receivables is our best estimate of the amount of probable credit losses in our existing accounts receivable. We base our estimates on the aging of our accounts receivable balances, financial health of specific customers, regional economic data, changes in our collections process, regulatory requirements, and our customers’ compliance with Universal Service Administrative Company ("USAC") rules. We review our allowance for doubtful receivables methodology at least annually. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Depending upon the type of account receivable our allowance is calculated using a pooled basis with an allowance for all accounts greater than 120 days past due, a specific identification method, or a combination of the two methods. When a specific identification method is used, past due balances over 90 days old and balances less than 90 days old but potentially uncollectible due to bankruptcy or other issues are reviewed individually for collectability. Account balances are charged off against the allowance when we feel it is probable the receivable will not be recovered. We do not have any off-balance-sheet credit exposure related to our customers. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | Inventories |
|--------|-----|-------------|

|   | Wireless handset inventories are stated at the lower of cost or market (net realizable value). Cost is determined using the average cost method. Handset costs in excess of the revenues generated from handset sales, or handset subsidies, are expensed at the time of sale. We do not recognize the expected handset subsidies prior to the time of sale because the promotional discount decision is made at the point of sale and/or because we expect to recover the handset subsidies through service revenue. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Inventories of other merchandise for resale and parts are stated at the lower of cost or market. Cost is determined using the average cost method. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | Property and Equipment |
|--------|-----|------------------------|

|   | Property and equipment is stated at cost. Construction costs of facilities are capitalized. Equipment financed under capital leases is recorded at the lower of fair market value or the present value of future minimum lease payments at inception of the lease. Construction in progress represents transmission equipment and support equipment and systems not placed in service on December 31, 2010 that management intends to place in service during 2011. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Depreciation is computed using the straight-line method based upon the shorter of the estimated useful lives of the assets or the lease term, if applicable, in the following ranges: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Asset Category                                               | Asset Lives |
|--------------------------------------------------------------|-------------|
| Telephony transmission equipment and distribution facilities | 5-20 years  |
| Fiber optic cable systems                                    | 15-25 years |
| Cable transmission equipment and distribution facilities     | 5-30 years  |
| Support equipment and systems                                | 3-20 years  |
| Transportation equipment                                     | 5-13 years  |
| Property and equipment under capital leases                  | 12-20 years |
| Buildings                                                    | 25 years    |
| Customer premises equipment                                  | 2-20 years  |

|   | (o) | Intangible Assets and Goodwill |
|--------|-----|--------------------------------|

|   | (p) | Impairment of Intangibles, Goodwill, and Long-lived Assets |
|--------|-----|------------------------------------------------------------|

----

|   | (q) | Amortization and Write-off of Loan Fees |
|--------|-----|-----------------------------------------|

|   | (r) | Other Assets |
|--------|-----|--------------|

|   | (s) | Asset Retirement Obligations |
|--------|-----|------------------------------|

| Balance at December 31, 2008 |   | $      | 6,179 |   |
|------------------------------|--------|--------|-------|--------|
| Liability incurred           |   |   | 5,764 |   |
| Accretion expense            |   |   | 634   |   |
| Liability settled            |   |   | (63   | )      |

----

| Balance at December 31, 2009 |   |   | 12,514 |   |
|------------------------------|--------|--------|--------|--------|
| Liability incurred           |   |   | 1,253  |   |
| Accretion expense            |   |   | 289    |   |
| Liability settled            |   |   | (21    | )      |
| Balance at December 31, 2010 |   | $      | 14,035 |   |

|   | (t) | Revenue Recognition |
|--------|-----|---------------------|

|   | · | Revenues generated from long-distance service usage and plan fees, Internet service excess usage, and managed services are recognized when the services are provided, |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We recognize unbilled revenues when the service is provided based upon minutes of use processed, and/or established rates, net of credits and adjustments, |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Cable television service package fees, local access and Internet service plan fees, and private line telecommunication revenues are billed in advance, recorded as Deferred Revenue on the balance sheet, and are recognized as the associated service is provided, |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Certain of our wireless services offerings have been determined to be revenue arrangements with multiple deliverables. Revenues are recognized as each element is earned based on objective evidence regarding the relative fair value of each element and when there are no undelivered elements that are essential to the functionality of the delivered elements. Revenues generated from wireless service usage and plan fees are recognized when the services are provided. Revenues generated from the sale of wireless handsets and accessories are recognized when title to the handset and accessories passes to the customer. As the non-refundable, up-front activation fee charged to the customer does not meet the criteria as a separate unit of accounting, we allocate the additional arrangement consideration received from the activation fee to the handset (the delivered item) to the extent that the aggregate handset and activation fee proceeds do not exceed the fair value of the handset. Any activation fees not allocated to the handset would be deferred upon activation and recognized as service revenue on a straight-line basis over the expected customer relationship period, |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The majority of our equipment sale transactions involve the sale of communications equipment with no other services involved. Such equipment is subject to standard manufacturer warranties and we do not manufacture any of the equipment we sell. In such instances the customer takes title to the equipment generally upon delivery. We recognize revenue for such transactions when title passes to the customer and the revenue is earned and realizable. On certain occasions we enter into agreements to sell and satisfactorily install or integrate telecommunications equipment for a fixed fee. Customers may have refund rights if the installed equipment does not meet certain performance criteria. We defer revenue recognition until we have received customer acceptance per the contract or agreement, and all other required revenue recognition elements have been achieved. Revenues from contracts with multiple element arrangements, such as those including installation and integration services, are recognized as each element is earned based on objective evidence regarding the relative fair value of each element and when there are no undelivered elements that are essential to the functionality of the delivered elements, |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Technical services revenues are derived primarily from maintenance contracts on equipment and are recognized on a prorated basis over the term of the contracts, |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·           | We account for fiber capacity Indefeasible Rights to Use ("IRU") agreements as an operating lease or service arrangement and we defer the revenue and recognize it ratably over the life of the IRU or as service is rendered, |
|---------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·           | Access revenue is recognized when earned.  We participate in access revenue pools with other telephone companies.  Such pools are funded by toll revenue and/or access charges regulated by the Regulatory Commission of Alaska ("RCA") within the intrastate jurisdiction and the FCC within the interstate jurisdiction. Much of the interstate access revenue is initially recorded based on estimates. These estimates are derived from interim financial information, available separation studies and the most recent information available about achieved rates of return. These estimates are subject to adjustment in future accounting periods as additional information becomes available. To the extent that a dispute arises over revenue settlements, our policy is to defer revenue collected until the dispute is resolved, |
|---------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | As an Eligible Telecommunications Carrier ("ETC"), we receive support from the Universal Service Fund ("USF") to support the provision of wireline local access and wireless service in high-cost areas.  We accrue estimated program revenue quarterly based on current line counts, the most current rates paid to us, our assessment of the impact of current FCC regulations, and our assessment of the potential outcome of FCC proceedings. Our estimated accrued revenue is subject to our judgment regarding the outcome of many variables and is subject to upward or downward adjustment in subsequent periods. Our ability to collect our accrued USF support is contingent upon continuation of the USF program and upon our eligibility to participate in that program, which is subject to change by future regulatory, legislative or judicial actions. We adjust revenue and the account receivable in the period the FCC makes a program change or we assess the likelihood that such a change has increased or decreased revenue. The payment from the USF is generally received approximately ten months subsequent to the services being performed. At December 31, 2010 we have $40.0 million in accounts receivable related to the USF high-cost area program.  We do not recognize revenue until our ETC status has been approved by the RCA, |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We receive refunds from time to time from incumbent local exchange carriers (“ILECs”), with which we do business in respect of their earnings that exceed regulatory requirements. Telephone companies that are rate regulated by the FCC using the rate of return method are required by the FCC to refund earnings from interstate access charges assessed to long-distance carriers when their earnings exceed their authorized rate of return. Such refunds are computed based on the regulated carrier’s earnings in several access categories. Uncertainties exist with respect to the amount of their earnings, the refunds (if any), their timing, and their realization. We account for such refundable amounts as gain contingencies, and, accordingly, do not recognize them until realization is a certainty upon receipt, |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | We receive grant revenue for the purpose of building communication infrastructure in rural areas.  We defer the revenue and recognize it over the life of the asset that was constructed using grant funds, and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other revenues are recognized when the service is provided. |
|--------|--------|-------------------------------------------------------------|

----

|   | (u) | Payments Received from Suppliers |
|--------|-----|----------------------------------|

----

|   | (v) | Advertising Expense |
|--------|-----|---------------------|

|   | (w) | Leases |
|--------|-----|--------|

|   | (x) | Interest Expense |
|--------|-----|------------------|

|   | (y) | Income Taxes |
|--------|-----|--------------|

|   | (z) | Share-based Payment Arrangements |
|--------|-----|----------------------------------|

----

|   | (aa) | Stock Options and Stock Awards Issued for Non-employee Services |
|--------|------|-----------------------------------------------------------------|

|   | (ab) | Use of Estimates |
|--------|------|------------------|

|   | (ac) | Concentrations of Credit Risk |
|--------|------|-------------------------------|

----

|   | (ad) | Software Capitalization Policy |
|--------|------|--------------------------------|

|   | (ae) | Guarantees |
|--------|------|------------|

|   | (af) | Classification of Taxes Collected from Customers |
|--------|------|--------------------------------------------------|

|   | (ag) Derivatives |
|--------|------------------|

|   | (ah) Reclassifications |
|--------|-----------------------------|

| (2) | Consolidated Statements of Cash Flows Supplemental Disclosures |
|-----|----------------------------------------------------------------|

|   | Changes in operating assets and liabilities, net effect of acquisitions, consist of (amounts in thousands): |
|--------|-------------------------------------------------------------------------------------------------------------|

| Year ended December 31,                     |   | 2010   |   |   | 2009   |   |    | 2008   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
| (Increase) decrease in accounts receivable  |   | $      | 12,283 |   |   |   | (33,555 | )      |   |   | (5,209 | ) |
| (Increase) decrease in prepaid expenses     |   |   | (1,459 | )      |   |   | 1,923   |   |   |   | 488 |   |
| (Increase) decrease in inventories          |   |   | 3,461  |   |   |   | (2,109  | )      |   |   | (3,336 | ) |
| (Increase) decrease in other current assets |   |   | 1,037  |   |   |   | (4,272  | )      |   |   | (69 | ) |
| (Increase) decrease in other assets         |   |   | 2,663  |   |   |   | (10,742 | )      |   |   | - |   |

----

| Increase (decrease) in accounts payable                                |   |   | 1,683  |   |   |   | (1,889  | )      |   |   | (4,198 | )      |
|------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|
| Increase (decrease) in deferred revenues                               |   |   | (4,108 | )      |   |   | (787    | )      |   |   | 4,543  |   |
| Increase (decrease) in accrued payroll and payroll related obligations |   |   | 271    |   |   |   | (752    | )      |   |   | 5,437  |   |
| Increase (decrease) in accrued liabilities                             |   |   | 2,585  |   |   |   | (1,608  | )      |   |   | 2,695  |   |
| Increase (decrease) in accrued interest                                |   |   | (1,365 | )      |   |   | 4,597   |   |   |   | 1,226  |   |
| Increase (decrease) in subscriber deposits                             |   |   | (278   | )      |   |   | 287     |   |   |   | 84     |   |
| Increase (decrease) in long-term deferred revenue                 |   |   | (3,167 | )      |   |   | 763     |   |   |   | 49,153 |   |
| Increase (decrease) in components of other long-term liabilities       |   |   | (362   | )      |   |   | 526     |   |   |   | (3,727 | )      |
|                                                                   |   | $      | 13,244 |   |   |   | (47,618 | )      |   |   | 47,087 |   |

| Net cash paid or received:                |   | 2010 |   |   | 2009   |   |   | 2008   |   |
|-------------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|
| Interest paid, net of amounts capitalized |   | $    | 71,140 |   |   |   | 51,161 |   |   |   | 46,781 |   |
| Income tax refund received                |   | $    | 1,163  |   |   |   | 911    |   |   |   | 83 |   |
| Income tax paid                           |   | $    | -      |   |   |   | -      |   |   |   | 884 |   |

|                                                                       |   | 2010 |   |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|
| Non-cash additions for purchases of property and  equipment      |   | $    | 7,622  |   |   |   | 4,427  |   |   |   | 12,124 |   |
| Asset retirement obligation additions to property and  equipment |   | $    | 1,253  |   |   |   | 5,764  |   |   |   | 1,408 |   |
| Warranty receivable applied to capital lease  obligation         |   | $    | -      |   |   |   | 465    |   |   |   | 8,415 |   |
| Assets acquired in acquisition                                             |   | $    | 480    |   |   |   | 6,475  |   |   |   | - |   |
| Capital lease obligation incurred                                          |   | $    | -      |   |   |   | -      |   |   |   | 99,873 |   |
| Satellite warranty receivable                                              |   | $    | -      |   |   |   | -      |   |   |   | 8,880 |   |

| (3) | Receivables and Allowance for Doubtful Receivables |
|-----|----------------------------------------------------|

|              |   | 2010   |    |   | 2009   |   |
|-------------------|--------|--------|---------|--------|--------|--------|
| Trade             |   | $      | 130,708 |   |   |   | 145,220 |   |
| Employee          |   |   | 722     |   |   |   | 315 |   |
| Other             |   |   | 1,426   |   |   |   | 2,324 |   |
| Total Receivables |   | $      | 132,856 |   |   |   | 147,859 |   |

----

|              |   |                         |   |   | Additions                     |   |   | Deductions                |   |   |                         |   |
|-------------------|--------|------------------------------|--------|--------|-------------------------------|--------|--------|---------------------------|--------|--------|------------------------------|--------|
| Description       |   | Balance at beginning of year |   |   | Charged to costs and expenses |   |   | Charged to other accounts |   |   | Write-offs net of recoveries |   |   | Balance at end of year |   |
| December 31, 2010 |   | $                            | 7,060  |   |                          |   | 3,085  |                      |   |   | 1,670                        |   |   |   | 2,626 |   |   |   | 9,189 |   |
| December 31, 2009 |   | $                            | 2,582  |   |                          |   | 3,818  |                      |   |   | 1,734                        |   |   |   | 1,074 |   |   |   | 7,060 |   |
| December 31, 2008 |   | $                            | 1,657  |   |                          |   | 3,471  |                      |   |   | -                            |   |   |   | 2,546 |   |   |   | 2,582 |   |

| (4) | Net Property and Equipment in Service |
|-----|---------------------------------------|

|                                                         |   | 2010   |      |   | 2009   |   |
|--------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Land and buildings                                           |   | $      | 36,332    |   |   |   | 31,279 |   |
| Telephony transmission equipment and distribution facilities |   |   | 674,246   |   |   |   | 637,292 |   |
| Cable transmission equipment and distribution facilities     |   |   | 128,919   |   |   |   | 117,483 |   |
| Support equipment and systems                                |   |   | 190,947   |   |   |   | 170,922 |   |
| Transportation equipment                                     |   |   | 9,116     |   |   |   | 9,930 |   |
| Property and equipment under capital leases                  |   |   | 102,972   |   |   |   | 102,972 |   |
| Customer premise equipment                                   |   |   | 124,655   |   |   |   | 121,943 |   |
| Fiber optic cable systems                                    |   |   | 244,381   |   |   |   | 242,309 |   |
|                                                         |   |   | 1,511,568 |   |   |   | 1,434,130 |   |
| Less accumulated depreciation                                |   |   | 693,645   |   |   |   | 598,687 |   |
| Less accumulated amortization                                |   |   | 19,645    |   |   |   | 12,363 |   |
| Net property and equipment in service                        |   | $      | 798,278   |   |   |   | 823,080 |   |

----

|  (5) | Intangible Assets and Goodwill |
|-----------|--------------------------------|

|                          |   | 2010   |   |   | 2009   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|
| Software license fees         |   | $      | 26,403 |   |   |   | 22,459 |   |
| Customer relationships        |   |   | 11,034 |   |   |   | 11,217 |   |
| Customer contracts            |   |   | 3,538  |   |   |   | 3,538 |   |
| Right-of-way                  |   |   | 783    |   |   |   | 783 |   |
| Other                         |   |   | 543    |   |   |   | 529 |   |
|                          |   |   | 42,301 |   |   |   | 38,526 |   |
| Less accumulated amortization |   |   | 24,584 |   |   |   | 18,965 |   |
| Net other intangible assets   |   | $      | 17,717 |   |   |   | 19,561 |   |

| Balance at December 31, 2008 |   | $      | 22,976 |   |
|------------------------------|--------|--------|--------|--------|
| Asset additions              |   |   | 4,772  |   |
| Less amortization expense    |   |   | 7,628  |   |
| Less asset write-off         |   |   | 559    |   |
| Balance at December 31, 2009 |   |   | 19,561 |   |
| Asset additions              |   |   | 4,533  |   |
| Less amortization expense    |   |   | 6,360  |   |
| Less asset write-off         |   |   | 17     |   |
| Balance at December 31, 2010 |   | $      | 17,717 |   |

----

|                 |   | Years Ended December 31, |   |
|----------------------|--------|--------------------------|--------|
|                 |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Amortization expense |   | $                        | 6,360  |   |   |   | 7,628 |   |   |   | 5,948 |   |

| Years Ending December 31, |   |   |   |
|---------------------------|--------|--------|--------|
| 2011                 |   | $      | 5,298  |   |
| 2012                 |   |   | 3,810  |   |
| 2013                 |   |   | 2,749  |   |
| 2014                 |   |   | 1,896  |   |
| 2015                 |   |   | 1,150  |   |

| (6) | Long-Term Debt |
|-----|----------------|

|                                             |   | December 31, |    |
|--------------------------------------------------|--------|--------------|---------|
|                                             |   | 2010         |    |   | 2009 |   |
| 2019 Notes (a)                                   |   | $            | 425,000 |   |   |   | 425,000 |   |
| 2014 Notes (b)                                   |   |         | 320,000 |   |   |   | 320,000 |   |
| Senior Credit Facility (c)                       |   |         | 20,000  |   |   |   | - |   |
| Rural Utility Service ("RUS") debt (d)           |   |         | 19,844  |   |   |   | 34,721 |   |
| CoBank Mortgage ("CoBank") note payable (d)      |   |         | 1,832   |   |   |   | 2,277 |   |
|   Debt                                 |   |         | 786,676 |   |   |   | 781,998 |   |
| Less unamortized discount paid on the 2019 Notes |   |         | 3,266   |   |   |   | 3,460 |   |
| Less unamortized discount paid on the 2014 Notes |   |         | 1,693   |   |   |   | 2,158 |   |
| Less current portion of long-term debt           |   |         | 2,516   |   |   |   | 5,133 |   |
| Long-term debt, net of unamortized discount      |   | $            | 779,201 |   |   |   | 771,247 |   |

| (a)   | We pay interest of 8.63% on notes that are due in 2019 (“2019 Notes”).  The 2019 Notes are senior unsecured obligations which rank equally in right of payment with the existing and future senior unsecured debt, including our 2014 Notes described below, and senior in right of payment to all future subordinated indebtedness.  The 2019 Notes are carried on our Consolidated Balance Sheet net of the unamortized portion of the discount, which is being amortized to Interest Expense over the term of the 2019 Notes using the effective interest method and an effective interest rate of 9.07%. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| If redeemed during the twelve month period commencing November 15 of the year indicated: |   | Redemption Price |    |
|------------------------------------------------------------------------------------------|--------|------------------|---------|
| 2014                                                                                |   |             | 104.313 | % |
| 2015                                                                                |   |             | 102.875 | % |
| 2015                                                                                |   |             | 101.438 | % |
| 2017 and thereafter                                                                      |   |             | 100.000 | % |

----

|   | (b) | We pay interest of 7.25% on notes that are due in 2014 (“2014 Notes”). The 2014 Notes are an unsecured senior obligation of GCI, Inc. The 2014 Notes are carried on our Consolidated Balance Sheet net of the unamortized portion of the discount, which is being amortized to Interest Expense over the term of the 2014 Notes using the effective interest method and an effective interest rate of 7.50%. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| If redeemed during the twelve month period commencing February 1 of the year indicated: |   | Redemption Price |    |
|-----------------------------------------------------------------------------------------|--------|------------------|---------|
| 2011                                                                               |   |             | 101.208 | % |
| 2012 and thereafter                                                                     |   |             | 100.000 | % |

|   | · | $250.0 million, reduced by the amount of any prepayments, or |
|--------|--------|--------------------------------------------------------------|

|   | · | 3.0 times earnings before interest, taxes, depreciation and amortization for the last four full fiscal quarters of GCI, Inc. and its subsidiaries. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | In November 2009, we completed our offering of the 2019 Notes and used the net proceeds from this offering to repay the outstanding amount of $389.8 million under our Senior Credit Facility, including $349.8 million outstanding on the term loan and $40.0 million outstanding on the revolving portion of the Senior Credit Facility.  The term loan was retired upon the repayment but the revolving portion was still available to us at December 31, 2009. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Total Leverage Ratio (as defined) |   | Applicable Margin |   |
|-----------------------------------|--------|-------------------|--------|
| >3.75                          |   |              | 4.00   | % |
| >3.25 but <3.75             |   |              | 3.50   | % |
| >2.75 but <3.25             |   |              | 3.00   | % |
| <2.75                          |   |              | 2.50   | % |

----

|   | (d) | We acquired long-term debt upon our acquisition of UUI and Unicom effective June 1, 2008, from the RUS and CoBank.  The long-term debt is due in monthly installments of principal based on a fixed rate amortization schedule.  The interest rates on the various loans to which this debt relates range from 2.0% to 6.8%.  Through UUI and Unicom, we have $48.7 million available for borrowing for specific capital expenditures under existing borrowing arrangements.  Substantially all of the assets of UUI and Unicom are collateral for the amounts due to RUS and CoBank. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Years ending December 31,                    |   |   |    |
|----------------------------------------------|--------|--------|---------|
| 2011                                    |   | $      | 2,516   |   |
| 2012                                    |   |   | 2,462   |   |
| 2013                                    |   |   | 2,611   |   |
| 2014                                    |   |   | 322,199 |   |
| 2015                                    |   |   | 22,048  |   |
| 2016 and thereafter                          |   |   | 434,840 |   |
|                                         |   |   | 786,676 |   |
| Less unamortized discount paid on 2019 Notes |   |   | 3,266   |   |
| Less unamortized discount paid on 2014 Notes |   |   | 1,693   |   |
| Less current portion of long-term debt       |   |   | 2,516   |   |
|                                         |   | $      | 779,201 |   |

| (7) | Income Taxes |
|-----|--------------|

|                  |   | Years Ended December 31, |   |
|-----------------------|--------|--------------------------|--------|
|                  |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| Deferred tax expense: |   |                     |   |   |   |   |   |   |   |
| Federal taxes         |   | $                        | 8,086  |   |   |   | 3,494 |   |   |   | 922 |   |
| State taxes           |   |                     | 1,402  |   |   |   | 442 |   |   |   | 155 |   |
|                  |   |                     | 9,488  |   |   |   | 3,936 |   |   |   | 1,077 |   |
|                  |   | $                        | 9,488  |   |   |   | 3,936 |   |   |   | 1,077 |   |

----

|                                                                                |   | Years Ended December 31, |   |
|-------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
| “Expected” statutory tax expense (benefit)                              |   | $                        | 6,455  |   |   |   | 2,608 |   |   |   | (803 | ) |
|  State income taxes, net of federal expense (benefit)                          |   |                     | 1,129  |   |   |   | 456 |   |   |   | (48 | ) |
|  Income tax effect of nondeductible entertainment expenses                     |   |                     | 775    |   |   |   | 703 |   |   |   | 725 |   |
|  Impact of non-controlling interest attributable to non-tax paying entity |   |                     | -      |   |   |   | - |   |   |   | 526 |   |
|  Income tax effect of nondeductible lobbying expenses                     |   |                     | 405    |   |   |   | 380 |   |   |   | 424 |   |
|  Income tax effect of nondeductible officer compensation                       |   |                     | 722    |   |   |   | 761 |   |   |   | 246 |   |
|  Other, net                                                                    |   |                     | 2      |   |   |   | (972 | ) |   |   | 7 |   |
|                                                                                |   | $                        | 9,488  |   |   |   | 3,936 |   |   |   | 1,077 |   |

|                                                                                                                         |   | 2010   |    |   | 2009   |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Current deferred tax assets, net of current deferred tax liability:                                                          |   |   |    |   |   |   |
| Compensated absences, accrued for financial reporting purposes                                                          |   | $      | 2,115   |   |   |   | 2,565 |   |
| Net operating loss carryforwards                                                                                             |   |   | -       |   |   |   | 8,354 |   |
| Workers compensation and self insurance health reserves, principally due to accrual for financial reporting purposes    |   |   | 810     |   |   |   | 580 |   |
| Accounts receivable, principally due to allowance for doubtful receivables                                                   |   |   | 3,770   |   |   |   | 2,981 |   |
| Deferred compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes         |   |   | 92      |   |   |   | (270 | ) |
| Other                                                                                                                        |   |   | 3,358   |   |   |   | 3,408 |   |
| Total current deferred tax assets                                                                                            |   | $      | 10,145  |   |   |   | 17,618 |   |
|                                                                                                                         |   |   |    |   |   |   |   |   |
| Long-term deferred tax assets:                                                                                               |   |   |    |   |   |   |   |   |
| Net operating loss carryforwards                                                                                             |   | $      | 88,967  |   |   |   | 74,345 |   |
| Deferred revenue for financial reporting purposes                                                                            |   |   | 19,481  |   |   |   | 22,422 |   |
| Alternative minimum tax credits                                                                                              |   |   | 1,895   |   |   |   | 1,892 |   |
| Deferred compensation expense for tax purposes in excess of amounts recognized for financial reporting purposes         |   |   | 2,908   |   |   |   | 1,093 |   |
| Asset retirement obligations in excess of amounts recognized for tax purposes                                                |   |   | 1,885   |   |   |   | 1,775 |   |
| Share-based compensation expense for financial reporting purposes in excess of amounts recognized for tax purposes |   |   | 8,647   |   |   |   | 3,026 |   |
| Other                                                                                                                        |   |   | 1,168   |   |   |   | 4,132 |   |
| Total long-term deferred tax assets                                                                                          |   |   | 124,951 |   |   |   | 108,685 |   |

----

|                                                                |   |   |    |   |   |   |    |   |
|---------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|
| Long-term deferred tax liabilities:                                 |   |   |    |   |   |   |    |   |
| Plant and equipment, principally due to differences in depreciation |   |   | 182,490 |   |   |   | 170,260 |   |
| Intangible assets                                                   |   |   | 44,862  |   |   |   | 38,811  |   |
| Total long-term deferred tax liabilities                            |   |   | 227,352 |   |   |   | 209,071 |   |
| Net long-term deferred tax liabilities                              |   | $      | 102,401 |   |   |   | 100,386 |   |

| Years ending December 31,                  |   | Federal |    |   | State  |   |
|--------------------------------------------|--------|---------|---------|--------|--------|--------|
| 2011                                  |   | $       | 759     |   |   |   | 759 |   |
| 2018                                  |   |    | 1,313   |   |   |   | 1,294 |   |
| 2019                                  |   |    | 25,942  |   |   |   | 25,391 |   |
| 2020                                  |   |    | 44,744  |   |   |   | 43,797 |   |
| 2021                                  |   |    | 29,614  |   |   |   | 28,987 |   |
| 2022                                  |   |    | 14,081  |   |   |   | 13,788 |   |
| 2023                                  |   |    | 3,968   |   |   |   | 3,903 |   |
| 2024                                  |   |    | 722     |   |   |   | - |   |
| 2025                                  |   |    | 737     |   |   |   | - |   |
| 2026                                  |   |    | 150     |   |   |   | - |   |
| 2027                                  |   |    | 1,010   |   |   |   | - |   |
| 2028                                  |   |    | 39,879  |   |   |   | 39,715 |   |
| 2029                                  |   |    | 48,370  |   |   |   | 47,558 |   |
| 2030                                  |   |    | 15,157  |   |   |   | 15,022 |   |
| Total tax net operating loss carryforwards |   | $       | 226,446 |   |   |   | 220,214 |   |

| (8) | Financial Instruments |
|-----|-----------------------|

----

|                                                     |   | December 31,    |    |   | December 31, |   |
|----------------------------------------------------------|--------|-----------------|---------|--------|--------------|--------|
|                                                     |   | 2010            |    |   | 2009         |   |
|                                                     |   | Carrying Amount |    |   | Fair Value   |   |   | Carrying Amount |   |   | Fair Value |   |
| Current and long-term debt and capital lease obligations |   | $               | 872,882 |   |         |   | 908,286 |   |   |   | 872,294 |   |   |   | 866,820 |   |
| Other liabilities                                        |   |            | 73,309  |   |         |   | 72,065 |   |   |   | 72,770 |   |   |   | 71,623 |   |

|   | Current and long-term debt and capital lease obligations:  The fair values of our 2019 Notes, 2014 Notes, RUS debt, CoBank mortgage note payable, and capital leases are based upon quoted market prices for the same or similar issues or on the current rates offered to us for the same remaining maturities.  The fair value of our amended Senior Credit Facility is estimated to approximate the carrying value because this instrument is subject to variable interest rates. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Other Liabilities:  Lease escalation liabilities are valued at the discounted amount of future cash flows using quoted market prices on current rates offered to us. Deferred compensation liabilities are carried at fair value, which is the amount payable as of the balance sheet date. Asset retirement obligations are recorded at their fair value and, over time, the liability is accreted to its present value each period. Our non-employee share-based compensation awards are reported at their fair value at each reporting period. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                             |   | Fair Value Measurement at Reporting Date Using                 |   |
|--------------------------------------------------|--------|----------------------------------------------------------------|--------|
| December 31, 2010 Assets                         |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
| Deferred compensation plan assets (mutual funds) |   |                                                           | 1,678  |   |   |   | - |   |   |   | - |   |
| Total assets at fair value                       |   | $                                                              | 1,678  |   |   |   | - |   |   |   | - |   |
|                                             |   |                                                           |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009 Assets                         |   |                                                           |   |   |   |   |   |   |   |   |   |   |
| Money market funds                               |   | $                                                              | 12     |   |   |   | - |   |   |   | - |   |
| U.S. government and agency obligations           |   |                                                           | 883    |   |   |   | - |   |   |   | - |   |
| Deferred compensation plan assets (mutual funds) |   |                                                           | 1,522  |   |   |   | - |   |   |   | - |   |
| Total assets at fair value                       |   | $                                                              | 2,417  |   |   |   | - |   |   |   | - |   |

----

| (9) | Stockholders’ Equity |
|-----|----------------------------|

----

|                    |   | 2010   |               |   | 2009   |   |               | 2008   |   |
|-------------------------|--------|--------|--------------------|--------|--------|--------|--------------------|--------|--------|
| Expected term (years)   |   |   | 5.0 – 6.5    |   |   |   | 5.2 – 6.8    |   |   |   | 5.2 – 6.8 |   |
| Volatility              |   |   | 52.6% – 55.8 | %      |   |   | 53.6% – 59.1 | %      |   |   | 47.6% – 55.4 | % |
| Risk-free interest rate |   |   | 2.0% – 2.9   | %      |   |   | 1.7% – 3.2   | %      |   |   | 1.6% – 3.4 | % |

|                                                 |   |   |   |   |     |   | Weighted    |   |           |   |
|------------------------------------------------------|--------|--------|--------|--------|----------|--------|-------------|--------|----------------|--------|
|                                                 |   |   |   |   | Weighted |   | Average     |   | Aggregate      |   |
|                                                 |   |   |   |   | Average  |   | Remaining   |   | Intrinsic      |   |
|                                                 |   |   |   |   | Exercise |   | Contractual |   | Value          |   |
|                                                 |   | Shares |   |   | Price    |   | Term        |   | (in thousands) |   |
| Outstanding at January 1, 2010                       |   |   | 1,627  |   |     | $      | 7.35        |   |           |   |   |   |
| Granted                                              |   |   | 203    |   |     | $      | 5.34        |   |           |   |   |   |
| Exercised                                            |   |   | (116   | )      |     | $      | 5.67        |   |           |   |   |   |
| Forfeited and retired                                |   |   | (466   | )      |     | $      | 7.60        |   |           |   |   |   |
| Outstanding at December 31, 2010                     |   |   | 1,249  |   |     | $      | 7.08        |   | 4.5 years      |   | $ | 6,976 |   |
| Exercisable at December 31, 2010                     |   |   | 914    |   |     | $      | 7.33        |   | 3.1 years      |   | $ | 4,885 |   |
|   Available for grant at December 31, 2010 |   |   | 4,180  |   |     |   |        |   |           |   |   |   |   |

|                           |   |   |   |   | Weighted   |   |
|--------------------------------|--------|--------|--------|--------|------------|--------|
|                           |   |   |   |   | Average    |   |
|                           |   |   |   |   | Grant Date |   |
|                           |   | Shares |   |   | Fair Value |   |
| Nonvested at January 1, 2010   |   |   | 2,225  |   |       | $      | 5.69 |   |
| Granted                        |   |   | 336    |   |       | $      | 7.55 |   |
| Vested                         |   |   | (233   | )      |       | $      | 8.30 |   |
| Forfeited                      |   |   | (132   | )      |       | $      | 12.51 |   |
| Nonvested at December 31, 2010 |   |   | 2,196  |   |       | $      | 5.29 |   |

----

|                                                                           |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|--------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Employee share-based compensation expense                                      |   | $      | 5,385  |   |   |   | 5,709  |   |   |   | 7,282 |   |
| Expense reversal for performance based options and awards not expected to vest |   |   | -      |   |   |   | (2,134 | )      |   |   | - |   |
| Adjustment to fair value of liability classified awards                        |   |   | 1,348  |   |   |   | (771   | )      |   |   | (4 | ) |
|   Total share-based compensation expense                             |   | $      | 6,733  |   |   |   | 2,804  |   |   |   | 7,278 |   |

|                                      |   |   |   |   | Weighted |   |
|-------------------------------------------|--------|--------|--------|--------|----------|--------|
|                                      |   |   |   |   | Average  |   |
|                                      |   |   |   |   | Exercise |   |
|                                      |   | Shares |   |   | Price    |   |
| Outstanding at December 31, 2008 and 2009 |   |   | 150    |   |     | $      | 6.50 |   |
| Options forfeited and retired             |   |   | (150   | )      |     | $      | 6.50 |   |
| Outstanding at December 31, 2010          |   |   | -      |   |     |   |   |   |
| Available for grant at December 31, 2010  |   |   | -      |   |     |   |   |   |

----

| (10) | Industry Segments Data |
|------|------------------------|

----

|                               |   |     |    |   |           |   |    |       |   |   |              |   |   |                 |   |   |                      |   |
|------------------------------------|--------|----------|---------|--------|----------------|--------|---------|------------|--------|--------|-------------------|--------|--------|----------------------|--------|--------|---------------------------|--------|
|                               |   |     |    |   |           |   |    |       |   |   |              |   |   |                 |   |   |                      |   |
|                               |   | Consumer |    |   | Network Access |   |    | Commercial |   |   | Managed Broadband |   |   | Regulated Operations |   |   | Total Reportable Segments |   |
| 2010                          |   |     |    |   |           |   |    |       |   |   |              |   |   |                 |   |   |                      |   |
| Revenues:                          |   |     |    |   |           |   |    |       |   |   |              |   |   |                 |   |   |                      |   |
| Intersegment                       |   | $        | -       |   |           |   | -       |       |   |   | 5,442             |   |   |                 | -      |   |                      |   | 176 |   |   |   | 5,618 |   |
| External                           |   |     | 342,898 |   |           |   | 107,227 |       |   |   | 128,458           |   |   |                 | 49,962 |   |                      |   | 22,705 |   |   |   | 651,250 |   |
| Total revenues                     |   |     | 342,898 |   |           |   | 107,227 |       |   |   | 133,900           |   |   |                 | 49,962 |   |                      |   | 22,881 |   |   |   | 656,868 |   |
| Cost of Goods Sold:                |   |     |    |   |           |   |    |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
| Intersegment                       |   |     | -       |   |           |   | 600     |       |   |   | 2,515             |   |   |                 | -      |   |                      |   | 176 |   |   |   | 3,291 |   |
| External                           |   |     | 104,481 |   |           |   | 25,030  |       |   |   | 59,885            |   |   |                 | 14,012 |   |                      |   | 4,409 |   |   |   | 207,817 |   |
| Total Cost of Goods Sold      |   |     | 104,481 |   |           |   | 25,630  |       |   |   | 62,400            |   |   |                 | 14,012 |   |                      |   | 4,585 |   |   |   | 211,108 |   |
| Contribution:                      |   |     |    |   |           |   |    |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
| Intersegment                       |   |     | -       |   |           |   | (600    | )          |   |   | 2,927             |   |   |                 | -      |   |                      |   | - |   |   |   | 2,327 |   |
| External                           |   |     | 238,417 |   |           |   | 82,197  |       |   |   | 68,573            |   |   |                 | 35,950 |   |                      |   | 18,296 |   |   |   | 443,433 |   |
| Total contribution                 |   |     | 238,417 |   |           |   | 81,597  |       |   |   | 71,500            |   |   |                 | 35,950 |   |                      |   | 18,296 |   |   |   | 445,760 |   |
| Less SG&A                      |   |     | 127,130 |   |           |   | 33,566  |       |   |   | 38,838            |   |   |                 | 17,338 |   |                      |   | 11,936 |   |   |   | 228,808 |   |
| Plus share-based compensation      |   |     | 3,361   |   |           |   | 1,598   |       |   |   | 1,117             |   |   |                 | 651    |   |                      |   | 6 |   |   |   | 6,733 |   |
| Plus non-cash contribution expense |   |     | (81     | )      |           |   | (41     | )          |   |   | (24               | )      |   |                 | (14    | )      |                      |   | - |   |   |   | (160 | ) |
| Plus accretion                     |   |     | 149     |   |           |   | 71      |       |   |   | 43                |   |   |                 | 26     |   |                      |   | - |   |   |   | 289 |   |
| Adjusted EBITDA                    |   | $        | 114,716 |   |           |   | 50,259  |       |   |   | 30,871            |   |   |                 | 19,275 |   |                      |   | 6,366 |   |   |   | 221,487 |   |

----

|                               |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
|------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| 2009                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Revenues:                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Intersegment                       |   | $      | -       |   |   |   | 419     |   |   |   | 5,729   |   |   |   | -      |   |   |   | 192    |   |   |   | 6,340   |   |
| External                           |   |   | 294,925 |   |   |   | 122,072 |   |   |   | 110,135 |   |   |   | 44,875 |   |   |   | 23,804 |   |   |   | 595,811 |   |
| Total revenues                     |   |   | 294,925 |   |   |   | 122,491 |   |   |   | 115,864 |   |   |   | 44,875 |   |   |   | 23,996 |   |   |   | 602,151 |   |
| Cost of Goods Sold:                |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Intersegment                       |   |   | 419     |   |   |   | 600     |   |   |   | 2,694   |   |   |   | -      |   |   |   | 192    |   |   |   | 3,905   |   |
| External                           |   |   | 96,894  |   |   |   | 27,253  |   |   |   | 52,245  |   |   |   | 11,135 |   |   |   | 6,149  |   |   |   | 193,676 |   |
| Total Cost of Goods Sold      |   |   | 97,313  |   |   |   | 27,853  |   |   |   | 54,939  |   |   |   | 11,135 |   |   |   | 6,341  |   |   |   | 197,581 |   |
| Contribution:                      |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Intersegment                       |   |   | (419    | )      |   |   | (181    | )      |   |   | 3,035   |   |   |   | -      |   |   |   | -      |   |   |   | 2,435   |   |
| External                           |   |   | 198,031 |   |   |   | 94,819  |   |   |   | 57,890  |   |   |   | 33,740 |   |   |   | 17,655 |   |   |   | 402,135 |   |
| Total contribution                 |   |   | 197,612 |   |   |   | 94,638  |   |   |   | 60,925  |   |   |   | 33,740 |   |   |   | 17,655 |   |   |   | 404,570 |   |
| Less SG&A                      |   |   | 112,883 |   |   |   | 38,348  |   |   |   | 35,363  |   |   |   | 14,450 |   |   |   | 11,627 |   |   |   | 212,671 |   |
| Plus share-based compensation      |   |   | 1,145   |   |   |   | 891     |   |   |   | 549     |   |   |   | 219    |   |   |   | -      |   |   |   | 2,804   |   |
| Plus non-cash contribution expense |   |   | 294     |   |   |   | 201     |   |   |   | 98      |   |   |   | 47     |   |   |   | -      |   |   |   | 640     |   |
| Adjusted EBITDA                    |   | $      | 86,587  |   |   |   | 57,563  |   |   |   | 23,174  |   |   |   | 19,556 |   |   |   | 6,028  |   |   |   | 192,908 |   |
|                               |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| 2008                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Revenues:                          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Intersegment                       |   | $      | 84      |   |   |   | 916     |   |   |   | 5,808   |   |   |   | -      |   |   |   | 157    |   |   |   | 6,965   |   |
| External                           |   |   | 255,632 |   |   |   | 153,821 |   |   |   | 114,660 |   |   |   | 37,047 |   |   |   | 14,282 |   |   |   | 575,442 |   |
| Total revenues                     |   |   | 255,716 |   |   |   | 154,737 |   |   |   | 120,468 |   |   |   | 37,047 |   |   |   | 14,439 |   |   |   | 582,407 |   |
| Cost of Goods Sold:                |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Intersegment                       |   |   | 656     |   |   |   | 685     |   |   |   | 2,821   |   |   |   | 125    |   |   |   | 97     |   |   |   | 4,384   |   |
| External                           |   |   | 89,853  |   |   |   | 40,326  |   |   |   | 59,480  |   |   |   | 10,265 |   |   |   | 3,134  |   |   |   | 203,058 |   |
| Total Cost of Goods Sold      |   |   | 90,509  |   |   |   | 41,011  |   |   |   | 62,301  |   |   |   | 10,390 |   |   |   | 3,231  |   |   |   | 207,442 |   |
| Contribution:                      |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Intersegment                       |   |   | (572    | )      |   |   | 231     |   |   |   | 2,987   |   |   |   | (125   | )      |   |   | 60     |   |   |   | 2,581   |   |
| External                           |   |   | 165,779 |   |   |   | 113,495 |   |   |   | 55,180  |   |   |   | 26,782 |   |   |   | 11,148 |   |   |   | 372,384 |   |
| Total contribution                 |   |   | 165,207 |   |   |   | 113,726 |   |   |   | 58,167  |   |   |   | 26,657 |   |   |   | 11,208 |   |   |   | 374,965 |   |
| Less SG&A                      |   |   | 110,364 |   |   |   | 43,057  |   |   |   | 36,191  |   |   |   | 13,132 |   |   |   | 7,562  |   |   |   | 210,306 |   |
| Plus share-based compensation      |   |   | 2,891   |   |   |   | 2,443   |   |   |   | 1,392   |   |   |   | 552    |   |   |   | -      |   |   |   | 7,278   |   |
| Plus non-cash contribution expense |   |   | 199     |   |   |   | 177     |   |   |   | 76      |   |   |   | 28     |   |   |   | -      |   |   |   | 480     |   |
| Plus non-controlling interest      |   |   | 661     |   |   |   | 589     |   |   |   | 253     |   |   |   | -      |   |   |   | -      |   |   |   | 1,503   |   |
| Plus other expense                 |   |   | (217    | )      |   |   | -       |   |   |   | -       |   |   |   | -      |   |   |   | -      |   |   |   | (217    | )      |
| Adjusted EBITDA                    |   | $      | 58,949  |   |   |   | 73,647  |   |   |   | 20,710  |   |   |   | 14,230 |   |   |   | 3,586  |   |   |   | 171,122 |   |

----

| Years Ended December 31,                               |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|--------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Reportable segment revenues                            |   | $      | 656,868 |   |   |   | 602,151 |   |   |   | 582,407 |   |
| Less intersegment revenues eliminated in consolidation |   |   | 5,618   |   |   |   | 6,340   |   |   |   | 6,965 |   |
| Consolidated revenues                                  |   | $      | 651,250 |   |   |   | 595,811 |   |   |   | 575,442 |   |

| Years Ended December 31,                               |   | 2010   |     |   | 2009   |   |     | 2008   |   |
|--------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
| Reportable segment Adjusted EBITDA                     |   | $      | 221,487  |   |   |   | 192,908  |   |   |   | 171,122 |   |
| Less depreciation and amortization expense             |   |   | (126,114 | )      |   |   | (123,362 | )      |   |   | (114,369 | ) |
| Less share-based compensation expense                  |   |   | (6,733   | )      |   |   | (2,804   | )      |   |   | (7,278 | ) |
| (Less) plus non-cash contribution expense              |   |   | 160      |   |   |   | (640     | )      |   |   | (480 | ) |
| Less net loss attributable to non-controlling interest |   |   | -        |   |   |   | -        |   |   |   | (1,503 | ) |
| Less accretion expense                                 |   |   | (289     | )      |   |   | -        |   |   |   | - |   |
| Plus other expense                                     |   |   | -        |   |   |   | -        |   |   |   | 217 |   |
| Consolidated operating income                          |   |   | 88,511   |   |   |   | 66,102   |   |   |   | 47,709 |   |
| Less other expense, net                                |   |   | (70,068  | )      |   |   | (58,650  | )      |   |   | (50,004 | ) |
| Consolidated income (loss) before income tax expense   |   | $      | 18,443   |   |   |   | 7,452    |   |   |   | (2,295 | ) |

| (11) | Related Party Transactions |
|------|----------------------------|

----

| (12) | Commitments and Contingencies |
|------|-------------------------------|

| Years ending December 31:                                                         |   | Operating |    |   | Capital |   |
|-----------------------------------------------------------------------------------|--------|-----------|---------|--------|---------|--------|
| 2011                                                                         |   | $         | 21,435  |   |    |   | 11,672 |   |
| 2012                                                                         |   |      | 17,614  |   |    |   | 11,732 |   |
| 2013                                                                         |   |      | 16,312  |   |    |   | 11,742 |   |
| 2014                                                                         |   |      | 14,653  |   |    |   | 11,752 |   |
| 2015                                                                         |   |      | 13,764  |   |    |   | 11,761 |   |
| 2016 and thereafter                                                               |   |      | 67,515  |   |    |   | 78,471 |   |
| Total minimum lease payments                                                      |   | $         | 151,293 |   |    |   | 137,130 |   |
| Less amount representing interest                                                 |   |      |    |   |    |   | 45,965 |   |
| Less current maturity of obligations under capital leases                         |   |      |    |   |    |   | 5,136 |   |
| Long-term obligations under capital leases, excluding  current maturity |   |      |    |   |    | $      | 86,029 |   |

----

| Years ending December 31,             |   |   |   |
|---------------------------------------|--------|--------|--------|
| 2011                             |   | $      | 6,741  |   |
| 2012                             |   |   | 6,697  |   |
| 2013                             |   |   | 6,628  |   |
| 2014                             |   |   | 6,140  |   |
| 2015                             |   |   | 5,005  |   |
| 2016 and thereafter                   |   |   | 38,042 |   |
| Total minimum future service revenues |   | $      | 69,253 |   |

| ·   | $2.4 million to secure payment of certain access charges associated with our provision of telecommunications services within the State of Alaska, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $249,000 to meet obligations associated with our insurance arrangements, and |
|--------------------|------------------------------------------------------------------------------|

| ·   | $100,000 to secure right of way access. |
|--------------------|-----------------------------------------|

----

| ·   | In September 2008, the FCC’s Office of Inspector General initiated an investigation regarding Alaska DigiTel’s compliance with program rules and requirements under the Lifeline Program. The request covered the period beginning January 1, 2004 through August 31, 2008 and related to amounts received for Lifeline service.  Alaska DigiTel was an Alaska based wireless communications company of which we acquired an 81.9% equity interest on January 2, 2007 and the remaining 18.1% equity interest on August 18, 2008 and was subsequently merged with one of our wholly owned subsidiaries in April 2009. Prior to August 18, 2008, our control over the operations of Alaska DigiTel was limited as required by the FCC upon its approval of our initial acquisition completed in January 2007. We responded to this request on behalf of Alaska DigiTel and the GCI companies as affiliates.  On January 18, 2011, we reached an agreement with the FCC and the Department of Justice to settle the matter, which required us to contribute $1.6 million to the United States Treasury and grants us a broad release of claims including those under the False Claims Act.  The $1.6 million contribution, of which $154,000, $661,000 and $741,000 was recognized in selling, general and administrative expense in the Statement of Operations in the years ending December 31, 2010, 2009 and 2008, respectively, was paid in January 2011; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In August 2010, a GCI-owned aircraft was involved in an accident resulting in five fatalities and injuries to the remaining four passengers on board.  We had aircraft and liability insurance coverage in effect at the time of the accident.  We cannot predict the likelihood or nature of any potential claims related to the accident. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (13) | Non-controlling Interest |
|------|--------------------------|

| (14) | Fourth Quarter Results of Operations (Unaudited) |
|------|--------------------------------------------------|

| 2010                                                                 | First   | Second              | Third               | Fourth              |
|---------------------------------------------------------------------------|---------|---------------------|---------------------|---------------------|
| Quarter                                                                   | Quarter | Quarter             | Quarter             |
|                                                                      |    |                |                |                |   |
| Total revenues                                                            | $       |  152,419  |  162,326  |  171,509  |  164,996  |
| Operating income                                                          | $       |  19,129   |  25,048   |  30,203   |  14,131  |
| Net income (loss) attributable to GCI                                     | $       |  1,674    |  1,930    |  7,583    |  (2,232) |
| Basic net income (loss) attributable to GCI per common share              | $       |  0.03     |  0.04     |  0.14     |  (0.05) |
| Diluted net income (loss) attributable to GCI per common share            | $       |  0.03     |  0.04     |  0.14     |  (0.05) |
|                                                                      |    |                |                |                |   |
| 2009                                                                 |    |                |                |                |   |
| Total revenues                                                            | $       |  148,689  |  148,796  |  150,816  |  147,510  |
| Operating income                                                          | $       |  13,512   |  18,559   |  20,730   |  13,301  |
| Net income (loss) attributable to GCI                                     | $       |  354      |  2,564    |  4,336    |  (3,738) |
| Basic net income (loss) attributable to GCI per common share              | $       |  0.01     |  0.05     |  0.08     |  (0.07) |
| Diluted net income (loss) attributable  to GCI per common share | $       | 0.00                | 0.05           | 0.08           | (0.07) |

| (15) | Subsequent Events |
|------|-------------------|

----

| Exhibit No. | Description                                                                                                                                                                              |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1    | Restated Articles of Incorporation of the Company dated August 20, 2007 (37)                                                                                                             |
| 3.2    | Amended and Restated Bylaws of the Company dated August 20, 2007 (36)                                                                                                                    |
| 4.1    | Certified copy of the General Communication, Inc. Amendment No. 1, dated as of June 25, 2007, to the Amended and Restated 1986 Stock Option Plan (33)                                    |
| 10.3   | Westin Building Lease (3)                                                                                                                                                                |
| 10.4   | Duncan and Hughes Deferred Bonus Agreements (4)                                                                                                                                          |
| 10.5   | Compensation Agreement between General Communication, Inc. and William C. Behnke dated January 1, 1997 (13)                                                                              |
| 10.6   | Order approving Application for a Certificate of Public Convenience and Necessity to operate as a Telecommunications (Intrastate Interexchange Carrier) Public Utility within Alaska (2) |
| 10.13  | MCI Carrier Agreement between MCI Telecommunications Corporation and General Communication, Inc. dated January 1, 1993 (5)                                                               |
| 10.14  | Contract for Alaska Access Services Agreement between MCI Telecommunications Corporation and General Communication, Inc. dated January 1, 1993 (5)                                       |
| 10.15  | Promissory Note Agreement between General Communication, Inc. and Ronald A. Duncan, dated August 13, 1993 (6)                                                                            |
| 10.16  | Deferred Compensation Agreement between General Communication, Inc. and Ronald A. Duncan, dated August 13, 1993 (6)                                                                      |
| 10.17  | Pledge Agreement between General Communication, Inc. and Ronald A. Duncan, dated August 13, 1993 (6)                                                                                     |
| 10.20  | The GCI Special Non-Qualified Deferred Compensation Plan (7)                                                                                                                             |
| 10.21  | Transponder Purchase Agreement for Galaxy X between Hughes Communications Galaxy, Inc. and GCI Communication Corp. (7)                                                                   |
| 10.25  | Licenses: (3)                                                                                                                                                                            |
| 10.25.1     | 214 Authorization                                                                                                                                                                        |
| 10.25.2     | International Resale Authorization                                                                                                                                                       |
| 10.25.3     | Digital Electronic Message Service Authorization                                                                                                                                         |
| 10.25.11    | Certificate of Convenience and Public Necessity – Telecommunications Service (Local Exchange) dated July 7, 2000  (29)                                                   |
| 10.26  | ATU Interconnection Agreement between GCI Communication Corp. and Municipality of Anchorage, executed January 15, 1997 (12)                                                              |
| 10.29  | Asset Purchase Agreement, dated April 15, 1996, among General Communication, Inc., ACNFI, ACNJI and ACNKSI (8)                                                                           |
| 10.30  | Asset Purchase Agreement, dated May 10, 1996, among General Communication, Inc., and Alaska Cablevision, Inc. (8)                                                                        |
| 10.31  | Asset Purchase Agreement, dated May 10, 1996, among General Communication, Inc., and McCaw/Rock Homer Cable System, J.V. (8)                                                             |
| 10.32  | Asset Purchase Agreement, dated May 10, 1996, between General Communication, Inc., and McCaw/Rock Seward Cable System, J.V. (8)                                                          |

----

| 10.33  | Amendment No. 1 to Securities Purchase and Sale Agreement, dated October 31, 1996, among General Communication, Inc., and the Prime Sellers Agent (9)      |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.34  | First Amendment to Asset Purchase Agreement, dated October 30, 1996, among General Communication, Inc., ACNFI, ACNJI and ACNKSI (9)                        |
| 10.36  | Order Approving Arbitrated Interconnection Agreement as Resolved and Modified by Order U-96-89(5) dated January 14, 1997 (12)                              |
| 10.37  | Amendment to the MCI Carrier Agreement executed April 20, 1994 (12)                                                                                        |
| 10.38  | Amendment No. 1 to MCI Carrier Agreement executed July 26, 1994 (11)                                                                                       |
| 10.39  | MCI Carrier Addendum—MCI 800 DAL Service effective February 1, 1994 (11)                                                                             |
| 10.40  | Third Amendment to MCI Carrier Agreement dated as of October 1, 1994 (11)                                                                                  |
| 10.41  | Fourth Amendment to MCI Carrier Agreement dated as of September 25, 1995 (11)                                                                              |
| 10.42  | Fifth Amendment to the MCI Carrier Agreement executed April 19, 1996 (12)                                                                                  |
| 10.43  | Sixth Amendment to MCI Carrier Agreement dated as of March 1, 1996 (11)                                                                                    |
| 10.44  | Seventh Amendment to MCI Carrier Agreement dated November 27, 1996 (14)                                                                                    |
| 10.45  | First Amendment to Contract for Alaska Access Services between General Communication, Inc. and MCI Telecommunications Corporation dated April 1, 1996 (14) |
| 10.46  | Service Mark License Agreement between MCI Communications Corporation and General Communication, Inc. dated April 13, 1994 (13)                            |
| 10.47  | Radio Station Authorization (Personal Communications Service License), Issue Date June 23, 1995 (13)                                                       |
| 10.50  | Contract No. 92MR067A Telecommunications Services between BP Exploration (Alaska), Inc. and GCI Network Systems dated April 1, 1992 (14)                   |
| 10.51  | Amendment No. 03 to BP Exploration (Alaska) Inc. Contract No. 92MRO67A effective August 1, 1996 (14)                                                       |
| 10.52  | Lease Agreement dated September 30, 1991 between RDB Company and General Communication, Inc. (2)                                                           |
| 10.54  | Order Approving Transfer Upon Closing, Subject to Conditions, and Requiring Filings dated September 23, 1996 (13)                                          |
| 10.55  | Order Granting Extension of Time and Clarifying Order dated October 21, 1996 (13)                                                                          |
| 10.58  | Employment and Deferred Compensation Agreement between General Communication, Inc. and John M. Lowber dated July 1992 (13)                                 |
| 10.59  | Deferred Compensation Agreement between GCI Communication Corp. and Dana L. Tindall dated August 15, 1994 (13)                                             |
| 10.60  | Transponder Lease Agreement between General Communication Incorporated and Hughes Communications Satellite Services, Inc., executed August 8, 1989 (6)     |
| 10.61  | Addendum to Galaxy X Transponder Purchase Agreement between GCI Communication Corp. and Hughes Communications Galaxy, Inc. dated August 24, 1995 (13)      |
| 10.62  | Order Approving Application, Subject to Conditions; Requiring Filing; and Approving Proposed Tariff on an Inception Basis, dated February 4, 1997 (13)     |
| 10.66  | Supply Contract Between Submarine Systems International Ltd. And GCI Communication Corp. dated as of July 11, 1997. (15)                                   |
| 10.67  | Supply Contract Between Tyco Submarine Systems Ltd. And Alaska United Fiber System Partnership Contract Variation No. 1 dated as of December 1, 1997. (15) |

----

| 10.71   | Third Amendment to Contract for Alaska Access Services between General Communication, Inc. and MCI Telecommunications Corporation dated February 27, 1998 (16) #                                                                                                                                                               |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.80   | Fourth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI WorldCom dated January 1, 1999. (17) #                                                                                                                            |
| 10.89   | Fifth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI WorldCom Network Services, Inc., formerly known as MCI Telecommunications Corporation dated August 7, 2000 # (18)                                                  |
| 10.90   | Sixth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI WorldCom Network Services, Inc., formerly known as MCI Telecommunications Corporation dated February 14, 2001 # (18)                                               |
| 10.91   | Seventh Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI WorldCom Network Services, Inc., formerly known as MCI Telecommunications Corporation dated March 8, 2001 # (18)                                                 |
| 10.100  | Contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated March 12, 2002 # (21)                                                                                                                             |
| 10.102  | First Amendment to Lease Agreement dated as of September 2002 between RDB Company and GCI Communication Corp. as successor in interest to General Communication, Inc. (22)                                                                                                                                                     |
| 10.103  | Agreement and plan of merger of GCI American Cablesystems, Inc. a Delaware corporation and GCI Cablesystems of Alaska, Inc. an Alaska corporation each with and into GCI Cable, Inc. an Alaska corporation, adopted as of December 10, 2002  (22)                                                                    |
| 10.104  | Articles of merger between GCI Cablesystems of Alaska, Inc. and GCI Cable, Inc., adopted as of December 10, 2002  (22)                                                                                                                                                                                               |
| 10.105  | Aircraft lease agreement between GCI Communication Corp., and Alaska corporation and 560 Company, Inc., an Alaska corporation, dated as of January 22, 2001 (22)                                                                                                                                                               |
| 10.106  | First amendment to aircraft lease agreement between GCI Communication Corp., and Alaska corporation and 560 Company, Inc., an Alaska corporation, dated as of February 8, 2002  (22)                                                                                                                                 |
| 10.108  | Bonus Agreement between General Communication, Inc. and Wilson Hughes (23)                                                                                                                                                                                                                                                     |
| 10.109  | Eighth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI WorldCom Network Services, Inc. # (23)                                                                                                                            |
| 10.110  | Settlement and Release Agreement between General Communication, Inc. and WorldCom, Inc. (23)                                                                                                                                                                                                                                   |
| 10.112  | Waiver letter agreement dated as of February 13, 2004 for Credit, Guaranty, Security and Pledge Agreement  (24)                                                                                                                                                                                                      |
| 10.113  | Indenture dated as of February 17, 2004 between GCI, Inc. and The Bank of New York, as trustee  (24)                                                                                                                                                                                                                 |
| 10.114  | Registration Rights Agreement dated as of February 17, 2004, among GCI, Inc.,  and Deutsche Bank Securities Inc., Jefferies & Company, Inc., Credit Lyonnais Securities (USA), Inc., Blaylock & Partners, L.P., Ferris, Baker Watts, Incorporated, and TD Securities (USA), Inc., as Initial Purchasers (24) |

----

| 10.121  | First amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated July 24, 2002 # (26)                                                                                                                                                                                                                                                                                             |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.122  | Second amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated December 31, 2003 (26)                                                                                                                                                                                                                                                                                          |
| 10.123  | Third amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated February 19, 2004 # (26)                                                                                                                                                                                                                                                                                         |
| 10.124  | Fourth amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated June 30, 2004 # (26)                                                                                                                                                                                                                                                                                            |
| 10.126  | Audit Committee Charter (as revised by the board of directors of General Communication, Inc. effective as of February 3, 2005)  (27)                                                                                                                                                                                                                                                                                                                                                                   |
| 10.127  | Nominating and Corporate Governance Committee Charter (as revised by the board of directors of General Communication, Inc. effective as of February 3, 2005)  (27)                                                                                                                                                                                                                                                                                                                                     |
| 10.128  | Fifth amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated January 22, 2005 #  (27)                                                                                                                                                                                                                                                                               |
| 10.129  | Ninth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI WorldCom Network Services, Inc. #  (28)                                                                                                                                                                                                                                                                                                    |
| 10.130  | Amended and Restated Credit Agreement among GCI Holdings, Inc. and Calyon New York Branch as Administrative Agent, Sole Lead Arranger, and Co-Bookrunner, The Initial Lenders and Initial Issuing Bank Named Herein as Initial Lenders and Initial Issuing Bank, General Electric Capital Corporation as Syndication Agent, and Union Bank of California, N.A., CoBank, ACB, CIT Lending Services Corporation and Wells Fargo Bank, N.A. as Co-Documentation Agents, dated as of August 31, 2005  (28) |
| 10.131  | Amended and Restated 1986 Stock Option Plan of General Communication, Inc. as of June 7, 2005  (28)                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.132  | Amendment No. 1 to $150 Million EBITDA Incentive Program dated December 30, 2005 (29)                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.134  | Full-time Transponder Capacity Agreement with PanAmSat Corporation dated March 31, 2006 #  (30)                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.135  | Tenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formerly known as MCI WorldCom Network Services) #  (31)                                                                                                                                                     |
| 10.136  | Reorganization Agreement among General Communication, Inc., Alaska DigiTel, LLC, The Members of Alaska DigiTel, LLC, AKD Holdings, LLC and The Members of Denali PCS, LLC dated as of June 16, 2006 (Nonmaterial schedules and exhibits to the Reorganization Agreement have been omitted pursuant to Item 601b.2 of Regulation S-K. We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) #  (32)                                             |
| 10.137  | Second Amended and Restated Operating Agreement of Alaska DigiTel, LLC dated as of January 1, 2007 (We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) #  (32)                                                                                                                                                                                                                                                                              |

----

| 10.138  | Sixth amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated September 20, 2006 (33)                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.139  | Seventh amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated January 17, 2007 # (33)                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.140  | General Communication, Inc. Director Compensation Plan dated June 29, 2006 (33)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.141  | Eleventh Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formerly known as MCI WorldCom Network Services) # (35)                                                                                                                                                                                                                                                                       |
| 10.142  | Third Amendment to the Amended and Restated Credit Agreement among GCI Holdings, Inc., GCI Communication Corp., GCI Cable, Inc., GCI Fiber Communication Co., Potter View Development Co., Inc., and Alaska United Fiber System Partnership, GCI, Inc., the banks, financial institutions, and other lenders party hereto and Calyon New York Branch as Administrative Agent, dated as of September 14, 2007 (36)                                                                                                                                                                                                          |
| 10.143  | Joinder Agreement dated as of September 28, 2007 among BNP Paribas, U.S. Bank National Association, GCI Holdings, Inc., GCI Communication Corp., GCI Cable, Inc., GCI Fiber Communication Co., Potter View Development Co., Inc., and Alaska United Fiber System Partnership, GCI, Inc., and Calyon New York Branch as Administrative Agent (36)                                                                                                                                                                                                                                                                           |
| 10.144  | Strategic Roaming Agreement dated as of October 30, 2007 between Alaska DigiTel, LLC. And WirelessCo L.P. # (37)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.145  | CDMA Build-out Agreement dated as of October 30, 2007 between Alaska DigiTel, LLC. and WirelessCo L.P. (Nonmaterial schedules and exhibits to the Reorganization Agreement have been omitted pursuant to Item 601b.2 of Regulation S-K. We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) # (37)                                                                                                                                                                                                                                                               |
| 10.146  | Long-term de Facto Transfer Spectrum Leasing agreement between Alaska DigiTel, LLC. and SprintCom, Inc. # (37)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.147  | Twelfth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formerly known as MCI WorldCom Network Services) dated November 19, 2007 (Nonmaterial schedules and exhibits to the Reorganization Agreement have been omitted pursuant to Item 601b.2 of Regulation S-K. We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) # (37) |
| 10.148  | Stock Purchase Agreement dated as of October 12, 2007 among GCI Communication Corp., United Companies, Inc., Sea Lion Corporation and Togiak Natives LTD. (Nonmaterial schedules and exhibits to the Reorganization Agreement have been omitted pursuant to Item 601b.2 of Regulation S-K. We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) (37)                                                                                                                                                                                                              |
| 10.149  | Fourth Amendment to the Amended and Restated Credit Agreement dated as of May 2, 2008 by and among GCI Holdings, Inc., the other parties thereto and Calyon New York Branch, as administrative agent, and the other Lenders party thereto (38)                                                                                                                                                                                                                                                                                                                                                                             |

----

| 10.150  | Second Amendment to Lease Agreement dated as of April 8, 2008 between RDB Company and GCI Communication Corp. as successor in interest to General Communication, Inc. (39)                                                                                                                                                                                                    |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.151  | Audit Committee Charter (as revised by the board of directors of General Communication, Inc. effective as of April 27, 2007) (39)                                                                                                                                                                                                                                             |
| 10.152  | Nominating and Corporate Governance Committee Charter (as revised by the board of directors of General Communication, Inc. effective as of April 27, 2007) (39)                                                                                                                                                                                                               |
| 10.153  | Thirteenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formally known as MCI WorldCom Network Services) dated January 16, 2008 # (39) |
| 10.154  | Fourteenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formally known as MCI WorldCom Network Services) dated May 15, 2008 (40)       |
| 10.155  | Contract for Alaska Access Services between the Company and Verizon, dated January 1, 1993 (41) #                                                                                                                                                                                                                                                                             |
| 10.156  | Third Amendment to Contract for Alaska Access Services between the Company and Verizon, dated February 27, 1998 (41) #                                                                                                                                                                                                                                                        |
| 10.157  | Fourth Amendment to Contract for Alaska Access Services between the Company and Verizon, dated January 1, 1999 (41) #                                                                                                                                                                                                                                                         |
| 10.158  | Fifth Amendment to the Amended and Restated Credit Agreement dated as of October 17, 2008 by and among Holdings, Inc. the other parties thereto and Calyon New York Branch, as administrative agent, and the other Lenders party thereto (42)                                                                                                                                 |
| 10.159  | Amendment to Deferred Bonus Agreement dated December 31, 2008 by and among the Company, the Employer and Mr. Duncan (43)                                                                                                                                                                                                                                                      |
| 10.160  | Amendment to Deferred Compensation Agreement dated December 31, 2008 by and among the Company, the Employer and Mr. Duncan (43)                                                                                                                                                                                                                                               |
| 10.161  | First Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated February 15, 2008 # (44)                                                                                                                                                                  |
| 10.162  | Second Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated April 9, 2008 # (44)                                                                                                                                                                     |
| 10.163  | Third Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated June 4, 2008 # (44)                                                                                                                                                                       |
| 10.164  | Fourth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated June 4, 2008 # (44)                                                                                                                                                                      |
| 10.165  | Fifth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated September 30, 2008 # (44)                                                                                                                                                                 |
| 10.166  | Sixth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated October 31, 2008 # (44)                                                                                                                                                                   |
| 10.167  | Seventh Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated November 6, 2008 # (44)                                                                                                                                                                 |

----

| 10.168  | Eighth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated June 8, 2009 # (44)                                                                                                                                                                                  |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.169  | Fifteenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formally known as MCI WorldCom Network Services) dated May 5, 2009 # (44)                   |
| 10.170  | Second Amended and Restated Credit Agreement dated as of January 29, 2010 by and among GCI Holdings, Inc., the other parties thereto and Calyon New York Branch, as administrative agent, and the other Lenders party thereto (45)                                                                                                                                                        |
| 10.171  | Sixteenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formally known as MCI WorldCom Network Services) dated October 13, 2009 (46)                |
| 10.172  | Seventeenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formally known as MCI WorldCom Network Services) dated December 8, 2009 #  (46) |
| 10.173  | Audit Committee Charter (as revised by the Board of Directors of General Communication, Inc. effective January 1, 2010) (47)                                                                                                                                                                                                                                                              |
| 10.174  | Nominating and Corporate Governance Committee Charter (as revised by the Board of Directors of General Communication, Inc. effective as of January 1, 2010) (47)                                                                                                                                                                                                                          |
| 10.175  | Ninth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication, Corp. dated June 29, 2010 # (47)                                                                                                                                                                                 |
| 10.176  | Stock Purchase Agreement between General Communication, Inc. and Arctic Slope Regional Corporation, an Alaska corporation, dated as of October 21, 2010 (48)                                                                                                                                                                                                                              |
| 10.177  | Description of Incentive Compensation Guidelines for Named Executive Officers (49)                                                                                                                                                                                                                                                                                                        |
| 10.178  | Amended and restated aircraft lease agreement between GCI Communication Corp., and Alaska corporation and 560 Company, Inc., an Alaska corporation, dated as of February 25, 2005 *                                                                                                                                                                                                       |
| 10.179  | First amendment to the amended and restated aircraft lease agreement between GCI Communication Corp., and Alaska corporation and 560 Company, Inc., an Alaska corporation, dated as of December 27, 2010 *                                                                                                                                                                                |
| 10.180       | Tenth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication, Corp. dated September 24, 2010 # *                                                                                                                                                                               |
| 10.181  | Eleventh Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication, Corp. dated September 23, 2010 # *                                                                                                                                                                            |

----

| 10.182  | Twelfth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication, Corp. dated November 5, 2010 # *                                                                                                                                                                                                                                          |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.183  | Reorganization Agreement among General Communication, Inc., Alaska DigiTel, LLC, The Members of Alaska DigiTel, LLC, AKD Holdings, LLC and The Members of Denali PCS, LLC dated as of June 16, 2006 (Nonmaterial schedules and exhibits to the Reorganization Agreement have been omitted pursuant to Item 601b.2 of Regulation S-K. We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) * |
| 10.184  | Second Amended and Restated Operating Agreement of Alaska DigiTel, LLC dated as of January 1, 2007 (We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) *                                                                                                                                                                                                                                  |
| 10.185  | Amendment No. 2 to the Amended and Restated 1986 Stock Option Plan of General Communication, Inc. (50)                                                                                                                                                                                                                                                                                                                                               |
| 10.186  | Amendment No. 3 to the Amended and Restated 1986 Stock Option Plan of General Communication, Inc. *                                                                                                                                                                                                                                                                                                                                                  |
| 10.187  | Amended Memorandum of Understanding dated effective as of January  26, 2006 setting forth the principal terms and conditions of transactions proposed to be consummated among Alaska DigiTel, LLC, an Alaska limited liability company, all of the members of Denali PCS, LLC, an Alaska limited liability company, and General Communication, Inc., an Alaska corporation *                                                               |
| 10.188  | Broadband Initiatives Program Loan/Grant and Security Agreement between United Utilities, Inc. and the United States of America dated as of June 1, 2010 # *                                                                                                                                                                                                                                                                                         |
| 14      | Code Of Business Conduct and Ethics (originally reported as exhibit 10.118) (25)                                                                                                                                                                                                                                                                                                                                                                     |
| 18.1    | Letter regarding change in accounting principle (39)                                                                                                                                                                                                                                                                                                                                                                                                 |
| 21.1    | Subsidiaries of the Registrant  *                                                                                                                                                                                                                                                                                                                                                                                                          |
| 23.1    | Consent of Grant Thornton LLP (Independent Public Accountant for Company) *                                                                                                                                                                                                                                                                                                                                                                          |
| 23.2    | Consent of KPMG LLP (Independent Public Accountant for Company)  *                                                                                                                                                                                                                                                                                                                                                                         |
| 31      | Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 *                                                                                                                                                                                                                                                                                                                                                                           |
| 32      | Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 *                                                                                                                                                                                                                                                                                                                            |
| 99      | Additional Exhibits:                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 99.1    | The Articles of Incorporation of GCI Communication Corp. (1)                                                                                                                                                                                                                                                                                                                                                                                         |
| 99.2    | The Bylaws of GCI Communication Corp. (1)                                                                                                                                                                                                                                                                                                                                                                                                            |
| 99.7    | The Bylaws of GCI Cable, Inc. (10)                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 99.8    | The Articles of Incorporation of GCI Cable, Inc. (10)                                                                                                                                                                                                                                                                                                                                                                                                |
| 99.15   | The Bylaws of GCI Holdings, Inc. (13)                                                                                                                                                                                                                                                                                                                                                                                                                |
| 99.16   | The Articles of Incorporation of GCI Holdings, Inc. (13)                                                                                                                                                                                                                                                                                                                                                                                             |
| 99.17   | The Articles of Incorporation of GCI, Inc. (12)                                                                                                                                                                                                                                                                                                                                                                                                      |
| 99.18   | The Bylaws of GCI, Inc. (12)                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 99.27   | The Partnership Agreement of Alaska United Fiber System (15)                                                                                                                                                                                                                                                                                                                                                                                         |
| 99.28   | The Bylaws of Potter View Development Co., Inc. (19)                                                                                                                                                                                                                                                                                                                                                                                                 |
| 99.29   | The Articles of Incorporation of Potter View Development Co., Inc. (19)                                                                                                                                                                                                                                                                                                                                                                              |
| 99.34   | The Bylaws of GCI Fiber Communication, Co., Inc. (20)                                                                                                                                                                                                                                                                                                                                                                                                |
| 99.35   | The Articles of Incorporation of GCI Fiber Communication, Co., Inc. (20)                                                                                                                                                                                                                                                                                                                                                                             |
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |

----

|   |                                                                                                                                                                                                                                  |   |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| #      | CONFIDENTIAL PORTION has been omitted pursuant to a request for confidential treatment by us to, and the material has been separately filed with, the SEC.  Each omitted Confidential Portion is marked by three asterisks. |
| *      | Filed herewith.                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                  |   |   |
|   |                                                                                                                                                                                                                                  |   |   |

| Exhibit Reference | Description                                                                                                                                                                  |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1            | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 1990                                                             |
| 2            | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 1991                                                             |
| 3            | Incorporated by reference to The Company’s Registration Statement on Form 10 (File No. 0-15279), mailed to the Securities and Exchange Commission on December 30, 1986 |
| 4            | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 1989.                                                            |
| 5            | Incorporated by reference to The Company’s Current Report on Form 8-K dated June 4, 1993.                                                                              |
| 6            | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 1993.                                                            |
| 7            | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 1995.                                                            |
| 8            | Incorporated by reference to The Company’s Form S-4 Registration Statement dated October 4, 1996.                                                                      |
| 9            | Incorporated by reference to The Company’s Current Report on Form 8-K dated November 13, 1996.                                                                         |
| 10           | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 1996.                                                            |
| 11           | Incorporated by reference to The Company’s Current Report on Form 8-K dated March 14, 1996, filed March 28, 1996.                                                      |
| 12           | Incorporated by reference to The Company’s Form S-3 Registration Statement (File No. 333-28001) dated May 29, 1997.                                                    |
| 13           | Incorporated by reference to The Company’s Amendment No. 1 to Form S-3/A Registration Statement (File No. 333-28001) dated July 8, 1997.                               |
| 14           | Incorporated by reference to The Company’s Amendment No. 2 to Form S-3/A Registration Statement (File No. 333-28001) dated July 21, 1997.                              |
| 15           | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 1997.                                                            |
| 16           | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 1998.                                                            |
| 17           | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 1999.                                                           |

----

| 18  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2001.                    |
|----------|----------------------------------------------------------------------------------------------------------------------------------------|
| 19  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2001.                     |
| 20  | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2001.                      |
| 21  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2002.                     |
| 22  | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2002.                      |
| 23  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2003.                     |
| 24  | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2003.                      |
| 25  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2004.                    |
| 26  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2004.                     |
| 27  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2005.                    |
| 28  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2005.                |
| 29  | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2005 filed March 16, 2006. |
| 30  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2006.                    |
| 31  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2006.                     |
| 32  | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2006 filed March 19, 2007. |
| 33  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2007.                    |
| 34  | Incorporated by reference to The Company’s Form S-8 filed with the SEC on July 27, 2007.                                         |
| 35  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2007.                     |
| 36  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2007.                |
| 37  | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2007 filed March 7, 2008.  |
| 38  | Incorporated by reference to the Company's Report on Form 8-K for the period May 2, 2008 filed May 8, 2008.                            |

----

| 39  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2008.                     |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------|
| 40  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2008.                      |
| 41  | Incorporated by reference to The Company's Report on Form 8-K for the period September 19, 2008 filed on September 22, 2008.            |
| 42  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2008.                 |
| 43  | Incorporated by reference to The Company's Report on Form 8-K for the period December 31, 2008 filed January 6, 2009.                   |
| 44  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2009.                 |
| 45  | Incorporated by reference to The Company's Report on Form 8-K for the period January 29, 2010 filed February 3, 2010.                   |
| 46  | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2009 filed March 12, 2010.  |
| 47  | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2010 filed August 5, 2010. |
| 48  | Incorporated by reference to The Company's Report on Form 8-K for the period October 21, 2010 filed October 27, 2010.                   |
| 49  | Incorporated by reference to The Company's Report on Form 8-K for the period October 7, 2010 filed October 15, 2010.                    |
| 50  | Incorporated by reference to The Company’s Form SC TO-I dated August 6, 2009.                                                     |

----

|   | By:    |   /s/ Ronald A. Duncan |   |
|--------|--------|-----------------------------|--------|
|   |   | Ronald A. Duncan, President |   |
|   |   | (Chief Executive Officer)   |   |

| Date: |   March 14, 2011 |   |
|-------|-----------------------|--------|

| Signature                     |   | Title                                                         |   | Date                  |
|-------------------------------|--------|---------------------------------------------------------------|--------|-----------------------|
|                          |   |                                                          |   |                  |
|   /s/ Stephen M. Brett   |   | Chairman of Board and Director                                |   |   March 1, 2011  |
| Stephen M. Brett              |   |                                                          |   |                  |
|                          |   |                                                          |   |                  |
|   /s/ Ronald A. Duncan   |   | President and Director                                        |   |   March 14, 2011 |
| Ronald A. Duncan              |   | (Principal Executive Officer)                                 |   |                  |
|                          |   |                                                          |   |                  |
|   /s/ Jerry A. Edgerton  |   | Director                                                      |   |   March 1, 2011  |
| Jerry A. Edgerton             |   |                                                          |   |                  |
|                          |   |                                                          |   |                  |
|   /s/ Scott M. Fisher    |   | Director                                                      |   |   March 1, 2011  |
| Scott M. Fisher               |   |                                                          |   |                  |
|                          |   |                                                          |   |                  |
|   /s/ William P. Glasgow |   | Director                                                      |   |   March 7, 2011  |
| William P. Glasgow            |   |                                                          |   |                  |
|                          |   |                                                          |   |                  |
|   /s/ Mark W. Kroloff    |   | Director                                                      |   |   March 14, 2011 |
| Mark W. Kroloff               |   |                                                          |   |                  |
|                          |   |                                                          |   |                  |
|   /s/ Stephen R. Mooney  |   | Director                                                      |   |   March 14, 2011 |
| Stephen R. Mooney             |   |                                                          |   |                  |
|                          |   |                                                          |   |                  |
|   /s/ James M. Schneider |   | Director                                                      |   |   March 10, 2011 |
| James M. Schneider            |   |                                                          |   |                  |
|                          |   |                                                          |   |                  |
|   /s/ John M. Lowber     |   | Senior Vice President, Chief Financial                        |   |   March 14, 2011 |
| John M. Lowber                |   | Officer, Secretary and Treasurer(Principal Financial Officer) |   |                  |
|                          |   |                                                          |   |                  |
|   /s/ Lynda L. Tarbath   |   | Vice President, Chief Accounting Officer                      |   |   March 14, 2011 |
| Lynda L. Tarbath              |   | (Principal Accounting Officer)                                |   |                  |

----