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

| x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|-----------------------------------------------------------|

| SECURITIES EXCHANGE ACT OF 1934 |
|---------------------------------|

| o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|------------------------------------------------------------|

| SECURITIES EXCHANGE ACT OF 1934 |
|---------------------------------|

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

|   | State of Alaska                 |   | 91-1820757          |   |
|--------|---------------------------------|--------|---------------------|--------|
|   | (State or other jurisdiction of |   | (I.R.S Employer     |   |
|   | incorporation or organization)  |   | Identification No.) |   |

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

|   | Registrant’s telephone number, including area code: (907) 868-5600 |
|--------|--------------------------------------------------------------------------|

|   | Not Applicable                                                                   |   |
|--------|----------------------------------------------------------------------------------|--------|
|   | Former name, former address and former fiscal year, if changed since last report |   |

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

----

|                                                      |                                                 |                                                                                                              |   |   | Page No. |
|-----------------------------------------------------------|------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|--------|--------|----------|
|                                                      |                                                 |                                                                                                              |   |   |     |
| Cautionary Statement Regarding Forward-Looking Statements | 3                                                    |
|                                                      |                                                 |                                                                                                              |   |   |     |
| Part I.  FINANCIAL INFORMATION                  |                                                 |
|                                                      |                                                 |                                                                                                              |   |   |     |
|                                                      | Item 1.                                              | Financial Statements                                                                                              |   |   |     |
|                                                      |                                                 |                                                                                                              |   |   |     |
|                                                      |                                                 | Consolidated Balance Sheets (unaudited) as of June 30, 2013 and December 31, 2012                                 |   |   | 4        |
|                                                      |                                                 |                                                                                                              |   |   |     |
|                                                      |                                                 | Consolidated Income Statements (unaudited) for the three and six months ended June 30, 2013 and 2012              |   |   | 6        |
|                                                      |                                                 |                                                                                                              |   |   |     |
|                                                      |                                                 | Consolidated Statements of Stockholder’s Equity (unaudited) for the six months ended June 30, 2013 and 2012 |   |   | 7        |
|                                                      |                                                 |                                                                                                              |   |   |     |
|                                                      |                                                 | Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2013 and 2012                 |   |   | 8        |
|                                                      |                                                 |                                                                                                              |   |   |     |
|                                                      |                                                 | Condensed Notes to Interim Consolidated Financial Statements (unaudited)                                          |   |   | 9        |
|                                                      |                                                 |                                                                                                              |   |   |     |
|                                                      | Item 2.                                              | Management’s Discussion and Analysis of Financial Condition and Results of Operations                       |   |   | 20       |
|                                                      |                                                 |                                                                                                              |   |   |     |
|                                                      | Item 3.                                              | Quantitative and Qualitative Disclosures About Market Risk                                                        |   |   | 31       |
|                                                      |                                                 |                                                                                                              |   |   |     |
|                                                      | Item 4.                                              | Controls and Procedures                                                                                           |   |   | 31       |
|                                                      |                                                 |                                                                                                              |   |   |     |
| Part II.  OTHER INFORMATION                     |                                                 |                                                                                                              |   |
|                                                      |                                                 |                                                                                                              |   |   |     |
|                                                      | Item 6.                                              | Exhibits                                                                                                          |   |   | 33       |
|                                                      |                                                 |                                                                                                              |   |   |     |
|                                                      | Other items are omitted, as they are not applicable. |                                                                                                              |   |
|                                                      |                                                 |                                                                                                              |   |   |     |
| SIGNATURES                                                |                                                 |                                                                                                              | 34     |

----

----

|                                                                                                                                                      |   |     |      |   |         |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|--------------|-------------|
| PART I. FINANCIAL INFORMATION                                                                                                                             |   |
| ITEM 1. FINANCIAL STATEMENTS                                                                                                                              |   |
|                                                                                                                                                      |   |     |      |   |         |        |
| GCI, INC. AND SUBSIDIARIES                                                                                                                                |   |
| CONSOLIDATED BALANCE SHEETS                                                                                                                               |   |
| (Unaudited)                                                                                                                                               |   |
|                                                                                                                                                      |   |     |      |   |         |        |
|                                                                                                                                                      |   |     |      |   |         |        |
| (Amounts in thousands)                                                                                                                                    |   |     |      |   |         |        |
|                                                                                                                                                      |   | June 30, |      |   | December 31, |        |
| ASSETS                                                                                                                                                    |   | 2013     |      |   | 2012         |        |
|                                                                                                                                                      |   |     |      |   |         |        |
| Current assets:                                                                                                                                           |   |     |      |   |         |        |
| Cash and cash equivalents                                                                                                                                 |   | $        | 21,911    |   |         |        | 20,585 |   |
|                                                                                                                                                      |   |     |      |   |         |        |   |   |
| Receivables                                                                                                                                               |   |     | 167,465   |   |         |        | 150,436 |   |
| Less allowance for doubtful receivables                                                                                                                   |   |     | 2,810     |   |         |        | 3,215 |   |
| Net receivables                                                                                                                                           |   |     | 164,655   |   |         |        | 147,221 |   |
|                                                                                                                                                      |   |     |      |   |         |        |   |   |
| Deferred income taxes                                                                                                                                     |   |     | 33,862    |   |         |        | 12,897 |   |
| Prepaid expenses                                                                                                                                          |   |     | 10,929    |   |         |        | 8,441 |   |
| Inventories                                                                                                                                               |   |     | 8,765     |   |         |        | 12,098 |   |
| Other current assets                                                                                                                                      |   |     | 493       |   |         |        | 1,678 |   |
| Total current assets                                                                                                                                      |   |     | 240,615   |   |         |        | 202,920 |   |
|                                                                                                                                                      |   |     |      |   |         |        |   |   |
| Property and equipment in service, net of depreciation                                                                                                    |   |     | 841,932   |   |         |        | 838,247 |   |
| Construction in progress                                                                                                                                  |   |     | 104,897   |   |         |        | 94,418 |   |
| Net property and equipment                                                                                                                                |   |     | 946,829   |   |         |        | 932,665 |   |
|                                                                                                                                                      |   |     |      |   |         |        |   |   |
| Cable certificates                                                                                                                                        |   |     | 191,635   |   |         |        | 191,635 |   |
| Goodwill                                                                                                                                                  |   |     | 77,294    |   |         |        | 77,294 |   |
| Wireless licenses                                                                                                                                         |   |     | 25,967    |   |         |        | 25,967 |   |
| Restricted cash                                                                                                                                           |   |     | 20,151    |   |         |        | 30,933 |   |
| Other intangible assets, net of amortization                                                                                                              |   |     | 15,721    |   |         |        | 16,560 |   |
| Deferred loan and senior notes costs, net of amortization  of $5,493 and $4,554 at June 30, 2013 and December  31, 2012, respectively |   |     | 13,181    |   |         |        | 11,189 |   |
| Other assets                                                                                                                                              |   |     | 14,293    |   |         |        | 13,453 |   |
| Total other assets                                                                                                                                        |   |     | 358,242   |   |         |        | 367,031 |   |
| Total assets                                                                                                                                              |   | $        | 1,545,686 |   |         |        | 1,502,616 |   |
|                                                                                                                                                      |   |     |      |   |         |        |   |   |
| See accompanying condensed notes to interim consolidated financial statements.                                                                            |   |
|                                                                                                                                                      |   |     |      |   |         |        |   |   |
|                                                                                                                                                      |   |     |      |   |         |        |   |   |
|                                                                                                                                                      |   |     |      |   |         |        |   |   |
|                                                                                                                                                      |   |     |      |   |         | (Continued) |   |

----

| GCI, INC. AND SUBSIDIARIES                                                                                                                               |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                              |   |
| (Unaudited)                                                                                                                                              |   |
| (Continued)                                                                                                                                              |   |
|                                                                                                                                                     |   |   |   |   |   |   |
|                                                                                                                                                     |   |   |   |   |   |   |
| (Amounts in thousands)                                                                                                                                   |   |   |   |   |   |   |
|                                                                                                                                                     |   | June 30, |   |   | December 31, |   |
| LIABILITIES AND STOCKHOLDER'S EQUITY                                                                                                                     |   | 2013 |   |   | 2012 |   |
|                                                                                                                                                     |   |   |   |   |   |   |
| Current liabilities:                                                                                                                                     |   |   |   |   |   |   |
| Current maturities of obligations under long-term debt and  capital leases                                                                     |   | $ | 8,120 |   |   |   | 7,923 |   |
| Accounts payable                                                                                                                                         |   |   | 44,663 |   |   |   | 52,384 |   |
| Deferred revenue                                                                                                                                         |   |   | 25,425 |   |   |   | 25,218 |   |
| Accrued payroll and payroll related obligations                                                                                                          |   |   | 23,270 |   |   |   | 19,440 |   |
| Accrued interest                                                                                                                                         |   |   | 6,761 |   |   |   | 6,786 |   |
| Accrued liabilities                                                                                                                                      |   |   | 17,502 |   |   |   | 15,242 |   |
| Subscriber deposits                                                                                                                                      |   |   | 1,499 |   |   |   | 1,366 |   |
| Total current liabilities                                                                                                                                |   |   | 127,240 |   |   |   | 128,359 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Long-term debt, net                                                                                                                                      |   |   | 896,123 |   |   |   | 875,123 |   |
| Obligations under capital leases, excluding current maturities                                                                                           |   |   | 69,545 |   |   |   | 72,725 |   |
| Obligation under capital lease due to related party, excluding  current maturity                                                               |   |   | 1,887 |   |   |   | 1,892 |   |
| Deferred income taxes                                                                                                                                    |   |   | 151,814 |   |   |   | 123,661 |   |
| Long-term deferred revenue                                                                                                                               |   |   | 89,886 |   |   |   | 89,815 |   |
| Other liabilities                                                                                                                                        |   |   | 25,899 |   |   |   | 25,511 |   |
| Total liabilities                                                                                                                                        |   |   | 1,362,394 |   |   |   | 1,317,086 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                                                            |   |   |   |   |   |   |   |   |
| Stockholder's equity:                                                                                                                                    |   |   |   |   |   |   |   |   |
| Class A common stock (no par). Authorized 10 shares;  issued and outstanding 0.1 shares each at June 30,  2013 and December 31, 2012 |   |   | 206,622 |   |   |   | 206,622 |   |
| Paid-in capital                                                                                                                                          |   |   | 71,208 |   |   |   | 67,493 |   |
| Retained deficit                                                                                                                                         |   |   | (126,562 | ) |   |   | (120,843 | ) |
| Total GCI, Inc. stockholder's equity                                                                                                                     |   |   | 151,268 |   |   |   | 153,272 |   |
| Non-controlling interests                                                                                                                                |   |   | 32,024 |   |   |   | 32,258 |   |
| Total stockholder's equity                                                                                                                               |   |   | 183,292 |   |   |   | 185,530 |   |
| Total liabilities and stockholder's equity                                                                                                               |   | $ | 1,545,686 |   |   |   | 1,502,616 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements.                                                                           |   |

----

| GCI, INC. AND SUBSIDIARIES                                                     |   |
|--------------------------------------------------------------------------------|--------|
| CONSOLIDATED INCOME STATEMENTS                                                 |   |
| (Unaudited)                                                                    |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   | Three Months Ended |   |   | Six Months Ended |   |
|                                                                           |   | June 30, |   |   | June 30, |   |
| (Amounts in thousands)                                                         |   | 2013 |   |   | 2012 |   |   | 2013 |   |   | 2012 |   |
| Revenues                                                                       |   | $ | 189,661 |   |   |   | 176,104 |   |   |   | 375,877 |   |   |   | 348,011 |   |
| Cost of goods sold (exclusive of depreciation and                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| amortization shown separately below)                                           |   |   | 65,699 |   |   |   | 58,073 |   |   |   | 130,309 |   |   |   | 114,933 |   |
| Selling, general and administrative expenses                                   |   |   | 63,871 |   |   |   | 60,048 |   |   |   | 128,418 |   |   |   | 123,030 |   |
| Depreciation and amortization expense                                          |   |   | 34,396 |   |   |   | 33,350 |   |   |   | 68,395 |   |   |   | 65,730 |   |
|  Operating income                                                         |   |   | 25,695 |   |   |   | 24,633 |   |   |   | 48,755 |   |   |   | 44,318 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other expense:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense (including amortization of  deferred loan fees)     |   |   | (17,424 | ) |   |   | (16,948 | ) |   |   | (34,328 | ) |   |   | (34,103 | ) |
| Loss on extinguishment of debt                                                 |   |   | (103 | ) |   |   | - |   |   |   | (103 | ) |   |   | - |   |
| Other                                                                          |   |   | 53 |   |   |   | 88 |   |   |   | 53 |   |   |   | (41 | ) |
|  Other expense                                                            |   |   | (17,474 | ) |   |   | (16,860 | ) |   |   | (34,378 | ) |   |   | (34,144 | ) |
|    Income before income tax expense                             |   |   | 8,221 |   |   |   | 7,773 |   |   |   | 14,377 |   |   |   | 10,174 |   |
| Income tax expense                                                             |   |   | 4,158 |   |   |   | 3,968 |   |   |   | 7,187 |   |   |   | 5,117 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income                                                   |   |   | 4,063 |   |   |   | 3,805 |   |   |   | 7,190 |   |   |   | 5,057 |   |
| Net loss attributable to non-controlling interests                             |   |   | 117 |   |   |   | 177 |   |   |   | 234 |   |   |   | 354 |   |
|   Net income attributable to GCI, Inc.                               |   | $ | 4,180 |   |   |   | 3,982 |   |   |   | 7,424 |   |   |   | 5,411 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements. |   |   |   |   |   |   |   |   |   |

----

| GCI, INC. AND SUBSIDIARIES                                                     |   |
|--------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY                                |   |
| SIX MONTHS ENDED JUNE 30, 2013 AND 2012                                        |   |
| (Unaudited)                                                                    |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                           |   | Shares of Class ACommonStock |   |   | Class ACommon Stock |   |   | Paid-inCapital |   |   | RetainedDeficit |   |   | Non-controllingInterests |   |   | TotalStockholder'sEquity |   |
|                                                                           |
| (Amounts in thousands)                                                         |
| Balances at January 1, 2012                                                    |   |   | 100 |   |   | $ | 206,622 |   |   |   | 61,841 |   |   |   | (112,781 | ) |   |   | 16,308 |   |   |   | 171,990 |   |
| Net income                                                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,411 |   |   |   | (354 | ) |   |   | 5,057 |   |
| Distribution to General  Communication, Inc.                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (12,170 | ) |   |   | - |   |   |   | (12,170 | ) |
| Contribution from General  Communication, Inc.                       |   |   | - |   |   |   | - |   |   |   | 3,411 |   |   |   | - |   |   |   | - |   |   |   | 3,411 |   |
| Balances at June 30, 2012                                                      |   |   | 100 |   |   | $ | 206,622 |   |   |   | 65,252 |   |   |   | (119,540 | ) |   |   | 15,954 |   |   |   | 168,288 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at January 1, 2013                                                    |   |   | 100 |   |   | $ | 206,622 |   |   |   | 67,493 |   |   |   | (120,843 | ) |   |   | 32,258 |   |   |   | 185,530 |   |
| Net income                                                                     |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,424 |   |   |   | (234 | ) |   |   | 7,190 |   |
| Distribution to General  Communication, Inc.                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (13,143 | ) |   |   | - |   |   |   | (13,143 | ) |
| Contribution from General  Communication, Inc.                       |   |   | - |   |   |   | - |   |   |   | 3,715 |   |   |   | - |   |   |   | - |   |   |   | 3,715 |   |
| Balances at June 30, 2013                                                      |   |   | 100 |   |   | $ | 206,622 |   |   |   | 71,208 |   |   |   | (126,562 | ) |   |   | 32,024 |   |   |   | 183,292 |   |
|                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements. |   |

----

| GCI, INC. AND SUBSIDIARIES                                                                         |   |
|----------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                              |   |
| SIX MONTHS ENDED JUNE 30, 2013 AND 2012                                                            |   |
| (Unaudited)                                                                                        |   |
|                                                                                               |   |   |   |   |   |   |
|                                                                                               |   |   |   |   |   |   |
| (Amounts in thousands)                                                                             |   |   |   |   |   |   |
|                                                                                               |   | 2013 |   |   | 2012 |   |
| Cash flows from operating activities:                                                              |   |   |   |   |   |   |
| Net income                                                                                         |   | $ | 7,190 |   |   |   | 5,057 |   |
| Adjustments to reconcile net income to net cash   provided by operating activities: |   |   |   |   |   |   |   |   |
| Depreciation and amortization expense                                                              |   |   | 68,395 |   |   |   | 65,730 |   |
| Loss on extinguishment of debt                                                                     |   |   | 103 |   |   |   | - |   |
| Deferred income tax expense                                                                        |   |   | 7,187 |   |   |   | 5,117 |   |
| Share-based compensation expense                                                                   |   |   | 2,906 |   |   |   | 2,595 |   |
| Other noncash income and expense items                                                             |   |   | 2,939 |   |   |   | 3,695 |   |
| Change in operating assets and liabilities                                                         |   |   | (12,404 | ) |   |   | (29,054 | ) |
| Net cash provided by operating activities                                                          |   |   | 76,316 |   |   |   | 53,140 |   |
| Cash flows from investing activities:                                                              |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                                                                |   |   | (87,355 | ) |   |   | (59,950 | ) |
| Restricted cash                                                                                    |   |   | 10,782 |   |   |   | 1,106 |   |
| Purchases of other assets and intangible assets                                                    |   |   | (2,306 | ) |   |   | (3,274 | ) |
| Grant proceeds                                                                                     |   |   | 1,773 |   |   |   | - |   |
| Other                                                                                              |   |   | 390 |   |   |   | - |   |
| Net cash used in investing activities                                                              |   |   | (76,716 | ) |   |   | (62,118 | ) |
| Cash flows from financing activities:                                                              |   |   |   |   |   |   |   |   |
| Borrowing on Senior Credit Facility                                                                |   |   | 110,000 |   |   |   | 30,000 |   |
| Repayment of debt and capital lease obligations                                                    |   |   | (93,921 | ) |   |   | (20,790 | ) |
| Net distribution to General Communication, Inc.                                                    |   |   | (13,143 | ) |   |   | (12,101 | ) |
| Borrowing of other long-term debt                                                                  |   |   | 1,780 |   |   |   | 3,249 |   |
| Payment of debt issuance costs                                                                     |   |   | (2,990 | ) |   |   | - |   |
| Net cash provided by financing activities                                                          |   |   | 1,726 |   |   |   | 358 |   |
| Net increase (decrease) in cash and cash equivalents                                               |   |   | 1,326 |   |   |   | (8,620 | ) |
| Cash and cash equivalents at beginning of period                                                   |   |   | 20,585 |   |   |   | 27,730 |   |
| Cash and cash equivalents at end of period                                                         |   | $ | 21,911 |   |   |   | 19,110 |   |
|                                                                                               |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements.                     |   |

----

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

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

| ·   | Video services, |
|--------------------|-----------------|

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

| ·   | Wireless roaming for certain wireless carriers and origination and termination of wireline traffic for certain common carriers, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | Local and long-distance voice services, |
|--------------------|-----------------------------------------|

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

| ·   | 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 services within Alaska and between Alaska and the remaining United States and foreign countries. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | (c) | Non-controlling Interests |
|--------|-----|---------------------------|

----

|   |  (d) | Recently Adopted Accounting Pronouncements |
|--------|-----------|--------------------------------------------|

|   | (e) | Regulatory Accounting |
|--------|-----|-----------------------|

|   | (f) | Earnings per Share |
|--------|-----|--------------------|

|   | (g) | Revenue Recognition |
|--------|-----|---------------------|

|   | (h) | Use of Estimates |
|--------|-----|------------------|

| (i)   | Income Taxes |
|-----------------|--------------|

----

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

|                      |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|---------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|
|                      |   | 2013                        |   |   | 2012                      |   |   | 2013 |   |   | 2012 |   |
| Surcharges reported gross |   | $                           | 1,205  |   |                      |   | 1,399 |   |   |   | 2,432 |   |   |   | 2,880 |   |

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

| Six Months Ended June 30,                                                         |   | 2013   |    |   | 2012   |   |
|-----------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Increase in accounts receivable, net                                              |   | $      | (19,241 | )      |   |   | (24,272 | ) |
| Increase in prepaid expenses                                                      |   |   | (2,531  | )      |   |   | (1,403 | ) |
| (Increase) decrease in inventories                                                |   |   | 3,333   |   |   |   | (8,501 | ) |
| Decrease in other current assets                                                  |   |   | 1,185   |   |   |   | 265 |   |
| (Increase) decrease in other assets                                               |   |   | (1,294  | )      |   |   | 2,768 |   |
| Increase (decrease) in accounts payable                                           |   |   | 1,044   |   |   |   | (7,084 | ) |
| Increase in deferred revenues                                                     |   |   | 207     |   |   |   | 3,015 |   |
| Increase (decrease) in accrued payroll and  payroll related obligations |   |   | 3,732   |   |   |   | (889 | ) |
| Increase in accrued liabilities                                                   |   |   | 2,881   |   |   |   | 4,304 |   |
| Increase (decrease) in accrued interest                                           |   |   | (25     | )      |   |   | 73 |   |
| Increase in subscriber deposits                                                   |   |   | 133     |   |   |   | 96 |   |
| Increase (decrease) in long-term deferred revenue                                 |   |   | (927    | )      |   |   | 4,274 |   |
| Decrease in components of other  long-term liabilities                  |   |   | (901    | )      |   |   | (1,700 | ) |
|   Total change in operating assets and liabilities                      |   | $      | (12,404 | )      |   |   | (29,054 | ) |

| Net cash paid or received:                |   | 2013   |   |   | 2012   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|
| Interest paid, net of amounts capitalized |   | $      | 35,139 |   |   |   | 34,671 |   |
|                                      |   |   |   |   |   |   |   |   |

|                                                                       |   | 2013 |   |   | 2012   |   |
|----------------------------------------------------------------------------|--------|------|--------|--------|--------|--------|
| Non-cash additions for purchases of property and  equipment      |   | $    | 13,740 |   |   |   | 12,680 |   |
| Asset retirement obligation additions to property and  equipment |   | $    | 1,066  |   |   |   | 132 |   |
| Deferred compensation distribution denominated in  shares        |   | $    | 621    |   |   |   | 511 |   |

----

| (3) | Intangible Assets and Goodwill |
|-----|--------------------------------|

|                 |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|----------------------|--------|-----------------------------|--------|--------|---------------------------|--------|
|                 |   | 2013                        |   |   | 2012                      |   |   | 2013 |   |   | 2012 |   |
| Amortization expense |   | $                           | 1,431  |   |                      |   | 1,324 |   |   |   | 2,887 |   |   |   | 2,625 |   |

| Years Ending December 31, |   |   |   |
|---------------------------|--------|--------|--------|
| 2013                 |   | $      | 5,478  |   |
| 2014                 |   |   | 4,670  |   |
| 2015                 |   |   | 3,347  |   |
| 2016                 |   |   | 856    |   |
| 2017                 |   |   | 146    |   |

| (4) | Long-Term Debt |
|-----|----------------|

| Total Leverage Ratio (as defined) |   | Applicable Margin |
|-----------------------------------|--------|-------------------|
| >=5.5                          |   | 3.00%             |
| >=5.0 but <5.5              |   | 2.75%             |
| >=4.5 but <5.0              |   | 2.50%             |
| >=4.0 but <4.5              |   | 2.25%             |
| <4.0                           |   | 2.00%             |

----

| (5) | Financial Instruments |
|-----|-----------------------|

|                                                                |   | June 30,        |    |   | December 31, |   |
|---------------------------------------------------------------------|--------|-----------------|---------|--------|--------------|--------|
|                                                                |   | 2013            |    |   | 2012         |   |
|                                                                |   | Carrying Amount |    |   | Fair Value   |   |   | Carrying Amount |   |   | Fair Value |   |
| Current and long-term debt and  capital lease obligations |   | $               | 975,675 |   |         |   | 963,152 |   |   |   | 957,663 |   |   |   | 979,594 |   |
| Other liabilities                                                   |   | $               | 25,899  |   |         |   | 25,069 |   |   |   | 25,511 |   |   |   | 24,766 |   |

----

|   | Current and long-term debt and capital lease obligations:  The fair values of the $325.0 million in aggregate principal amount of 6.75% Senior Notes due 2021, the $425.0 million in aggregate principal amount of 8.63% Senior Notes due 2019.  Rural Utilities Service 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. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | Fair Value Measurement at Reporting Date Using                 |   |
|-------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
| June 30, 2013 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) |   | $                                                              | 1,945  |   |   |   | - |   |   |   | - |   |
| Total assets at fair value                                  |   | $                                                              | 1,945  |   |   |   | - |   |   |   | - |   |
|                                                        |   |                                                           |   |   |   |   |   |   |   |   |   |   |
| December 31, 2012 Assets                                    |   |                                                           |   |   |   |   |   |   |   |   |   |   |
| Deferred compensation plan assets  (mutual funds) |   | $                                                              | 1,758  |   |   |   | - |   |   |   | - |   |
| Total assets at fair value                                  |   | $                                                              | 1,758  |   |   |   | - |   |   |   | - |   |

| (6) | Stockholder’s Equity |
|-----|----------------------------|

----

|                         |   |   |   |   | Weighted   |   |
|------------------------------|--------|--------|--------|--------|------------|--------|
|                         |   |   |   |   | Average    |   |
|                         |   |   |   |   | Grant Date |   |
|                         |   | Shares |   |   | Fair Value |   |
| Nonvested at January 1, 2013 |   |   | 1,127  |   |       | $      | 9.59 |   |
| Granted                      |   |   | 664    |   |       | $      | 8.22 |   |
| Vested                       |   |   | (119   | )      |       | $      | 7.87 |   |
| Forfeited                    |   |   | (3     | )      |       | $      | 9.60 |   |
| Nonvested at June 30, 2013   |   |   | 1,669  |   |       | $      | 9.15 |   |

|                                                    |   | 2013   |   |   | 2012   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Share-based compensation expense                        |   | $      | 3,094  |   |   |   | 2,831 |   |
| Adjustment to fair value of liability classified awards |   |   | (188   | )      |   |   | (236 | ) |
|   Total share-based compensation expense      |   | $      | 2,906  |   |   |   | 2,595 |   |

| (7) | Segments |
|-----|----------|

----

|            |   |               |   |   |             |   |    |                      |   |   |     |   |   |     |   |   |                      |   |
|-----------------|--------|--------------------|--------|--------|------------------|--------|---------|---------------------------|--------|--------|----------|--------|--------|----------|--------|--------|---------------------------|--------|
|            |   | Three Months Ended |   |   | Six Months Ended |   |
|            |   | Wireless           |   |   | Wireline         |   |    | Total Reportable Segments |   |   | Wireless |   |   | Wireline |   |   | Total Reportable Segments |   |
| June 30, 2013   |   |               |   |   |             |   |    |                      |   |   |     |   |   |     |   |   |                      |   |
| Revenues        |   | $                  | 35,559 |   |             |   | 154,102 |                      |   |   | 189,661  |   |   |     | 69,396 |   |                      |   | 306,481 |   |   |   | 375,877 |   |
| Adjusted EBITDA |   | $                  | 14,273 |   |             |   | 47,866  |                      |   |   | 62,139   |   |   |     | 29,462 |   |                      |   | 91,326 |   |   |   | 120,788 |   |
|            |   |               |   |   |             |   |    |                      |   |   |     |   |   |     |   |   |                      |   |   |   |   |   |   |   |
| June 30, 2012   |   |               |   |   |             |   |    |                      |   |   |     |   |   |     |   |   |                      |   |   |   |   |   |   |   |
| Revenues        |   | $                  | 30,360 |   |             |   | 145,744 |                      |   |   | 176,104  |   |   |     | 59,804 |   |                      |   | 288,207 |   |   |   | 348,011 |   |
| Adjusted EBITDA |   | $                  | 12,590 |   |             |   | 46,831  |                      |   |   | 59,421   |   |   |     | 25,663 |   |                      |   | 88,587 |   |   |   | 114,250 |   |

|                                                                |   | Three Months Ended June 30, |    |   | Six Months Ended June 30, |   |
|---------------------------------------------------------------------|--------|-----------------------------|---------|--------|---------------------------|--------|
|                                                                |   | 2013                        |    |   | 2012                      |   |   | 2013 |   |   | 2012 |   |
| Reportable segment Adjusted EBITDA                                  |   | $                           | 62,139  |   |                      |   | 59,421 |   |   |   | 120,788 |   |   |   | 114,250 |   |
| Less depreciation and amortization  expense               |   |                        | (34,396 | )      |                      |   | (33,350 | ) |   |   | (68,395 | ) |   |   | (65,730 | ) |
| Less share-based compensation  expense                    |   |                        | (1,647  | )      |                      |   | (865 | ) |   |   | (2,906 | ) |   |   | (2,595 | ) |
| Less non-cash contribution expense                                  |   |                        | -       |   |                      |   | (160 | ) |   |   | - |   |   |   | (960 | ) |
| Less net loss attributable to  non-controlling interests  |   |                        | (197    | )      |                      |   | (177 | ) |   |   | (397 | ) |   |   | (354 | ) |
| Plus net loss (income) attributable to  equity investment |   |                        | (49     | )      |                      |   | (84 | ) |   |   | (53 | ) |   |   | 47 |   |
| Less accretion expense                                              |   |                        | (155    | )      |                      |   | (152 | ) |   |   | (282 | ) |   |   | (340 | ) |
| Consolidated operating income                                       |   |                        | 25,695  |   |                      |   | 24,633 |   |   |   | 48,755 |   |   |   | 44,318 |   |
| Less other expense                                                  |   |                        | (17,474 | )      |                      |   | (16,860 | ) |   |   | (34,378 | ) |   |   | (34,144 | ) |
| Consolidated income before  income tax expense            |   | $                           | 8,221   |   |                      |   | 7,773 |   |   |   | 14,377 |   |   |   | 10,174 |   |

----

| (8) | Non-controlling Interests |
|-----|---------------------------|

----

| June 30, 2013                                                                               |
|---------------------------------------------------------------------------------------------|
|                                                                                        | Assets |   | Equity |
|                                                                                        | Carrying Value |   | Classification |   | Carrying Value |   | Classification |
|                                                                                        | $ | 11,566 |   | Restricted cash1  |   | $ | 32,024 |   | Non-controlling interests |
|                                                                                        |   | 21,389 |   | Construction in progress |   |   | 931 |   | Retained earnings attributable to GCI, Inc. common stockholders |
|                                                                                        | $ | 32,955 |   |   |   | $ | 32,955 |   |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |
| December 31, 2012                                                                           |
|                                                                                        | Assets |   | Equity |
|                                                                                        | Carrying Value |   | Classification |   | Carrying Value |   | Classification |
|                                                                                        | $ | 22,348 |   | Restricted cash1  |   | $ | 32,258 |   | Non-controlling interests |
|                                                                                        |   | 10,607 |   | Construction in progress |   |   | 697 |   | Retained earnings attributable to GCI, Inc. common stockholders |
|                                                                                        | $ | 32,955 |   |   |   | $ | 32,955 |   |   |
|                                                                                        |
| 1 An additional $8.6 million in restricted cash is held at Unicom for use only on TERRA-NW. |
|                                                                                        |   |   |   |   |   |   |   |   |   |

| (9) | Commitments and Contingencies |
|-----|-------------------------------|

| (10) | Subsequent Events |
|------|-------------------|

----

----

----

----

|   |                                                  |                                        |           | Three Months Ended | Percentage Change1  | Six Months Ended | Percentage Change1  |
|--------|-------------------------------------------------------|---------------------------------------------|----------------|--------------------|--------------------------|------------------|--------------------------|
|   |                                                  |                                        |           | June 30,           | 2013                | June 30,         | 2013                |
|   |                                                  |                                        |           | 2013          | 2012                | vs. 2012         | 2013                | 2012  | vs. 2012 |
|   |                                                  |                                        |           |               |                     |             |                     |
|   | Statements of Operations Data:                        |                                        |           |               |                     |             |
|   | Revenues:                                             |                                        |           |               |                     |             |                     |
|   |                                                  | Wireless segment                            | 19%            | 17%                | 17%                      | 18%              | 17%                      | 16% |
|   |                                                  | Wireline segment                            | 81%            | 83%                | 6%                       | 82%              | 83%                      | 6% |
|   |                                                  |                                        | Total revenues | 100%               | 100%                     | 8%               | 100%                     | 100% | 8% |
|   | Selling, general and administrative expenses          | 34%                                         | 34%            | 6%                 | 34%                      | 35%              | 4%                       |
|   | Depreciation and amortization expense                 | 18%                                         | 19%            | 3%                 | 18%                      | 19%              | 4%                       |
|   | Operating income                                      | 14%                                         | 14%            | 4%                 | 13%                      | 13%              | 10%                      |
|   | Other expense, net                                    | 9%                                          | 10%            | 4%                 | 9%                       | 10%              | 1%                       |
|   | Income before income taxes                            | 4%                                          | 4%             | 6%                 | 4%                       | 3%               | 41%                      |
|   | Net income                                            | 2%                                          | 2%             | 7%                 | 2%                       | 1%               | 42%                      |
|   | Net loss attributable to the non-controlling interest | 0%                                          | 0%             | (34%)              | 0%                       | 0%               | (34%)                    |
|   | Net income attributable to GCI, Inc.                  | 2%                                          | 2%             | 5%                 | 2%                       | 2%               | 37%                      |
|   |                                                  |                                        |           |               |                     |             |                     |   |   |
|   |                                                  | 1 Percentage change in underlying data |           |               |                     |             |                     |

----

|               |   | Three Months Ended |   |   |       |   |   | Six Months Ended |   |   |       |   |
|--------------------|--------|--------------------|--------|--------|------------|--------|--------|------------------|--------|--------|------------|--------|
|               |   | June 30,           |   |   | Percentage |   |   | June 30,         |   |   | Percentage |   |
|               |   | 2013               |   |   | 2012       |   |   | Change           |   |   | 2013       |   |   | 2012 |   |   | Change |   |
| Revenue            |   | $                  | 35,559 |   |       |   | 30,360 |             |   |   | 17         | %      |   |   | 69,396 |   |   |   | 59,804 |   |   |   | 16 | % |
| Cost of Goods Sold |   | $                  | 16,573 |   |       |   | 13,970 |             |   |   | 19         | %      |   |   | 30,985 |   |   |   | 26,541 |   |   |   | 17 | % |
| Adjusted EBITDA    |   | $                  | 14,273 |   |       |   | 12,590 |             |   |   | 13         | %      |   |   | 29,462 |   |   |   | 25,663 |   |   |   | 15 | % |

| ·   | A $3.2 million or 49% and a $6.1 million or 51% increase in roaming revenue for the three and six months ended June 30, 2013 when compared to the same periods in 2012, respectively, is primarily due to an increase in data usage by our roaming partners’ customers, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |  A $1.4 million or 13% and a $3.4 million or 17% increase in non-Lifeline retail revenue for the three and six months ended June 30, 2013 when compared to the same periods in 2012, respectively, is primarily due to our retail wireless subscribers’ selection of plans that offer more data and an increase in our retail non-Lifeline wireless subscribers.  The Wireless segment recognizes 70% of retail wireless plan fee revenue with the remaining 30% recognized in Wireline segment – Consumer or Wireline segment – Business Services depending on whether the revenue is generated by a residential or commercial subscriber. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                   |             | Customer Group    |
|----------------------------------------|------------------|-------------------|
| Wireline Segment Services and Products | Consumer         | Business Services | Managed Broadband |
|                                   |             |              |   |   |
| Retail wireless                        | X                | X                 |   |
|                                   |             |              |   |   |
| Data:                                  |             |              |   |
|                                   | Internet         | X                 | X | X |
|                                   | Data networks    |              | X | X |
|                                   | Managed services |              | X | X |
|                                   |             |              |   |   |
| Video                                  | X                | X                 |   |
|                                   |             |              |   |   |
| Voice:                                 |             |              |   |
|                                   | Long-distance    | X                 | X | X |
|                                   | Local access     | X                 | X | X |

| ·   | Consumer – we offer a full range of retail wireless, data, video and voice services to residential customers. |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | Business Services - we offer a full range of retail wireless, data, video and voice services to local, national and global businesses, governmental entities and public and private educational institutions and wholesale data and voice services to other common carrier customers. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Managed Broadband – we offer Internet, data network and managed services to rural schools and health organizations and regulated voice services to residential and commercial customers in 61 rural communities primarily in Southwest Alaska. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | Three Months Ended |    |   |       |   |    | Six Months Ended |   |   |       |   |
|--------------------------------|--------|--------------------|---------|--------|------------|--------|---------|------------------|--------|--------|------------|--------|
|                           |   | June 30,           |    |   | Percentage |   |    | June 30,         |   |   | Percentage |   |
|                           |   | 2013               |    |   | 2012       |   |    | Change           |   |   | 2013       |   |   | 2012 |   |   | Change |   |
| Consumer                       |   |               |    |   |       |   |    |             |   |   |       |   |   |   |   |   |   |   |
| Wireless                       |   | $                  | 7,180   |   |       |   | 6,847   |             |   |   | 5          | %      |   |   | 13,726 |   |   |   | 12,893 |   |   |   | 6 | % |
| Data                           |   |               | 24,413  |   |       |   | 21,523  |             |   |   | 13         | %      |   |   | 48,469 |   |   |   | 41,972 |   |   |   | 15 | % |
| Video                          |   |               | 27,740  |   |       |   | 29,235  |             |   |   | (5         | %)     |   |   | 55,701 |   |   |   | 58,257 |   |   |   | (4 | %) |
| Voice                          |   |               | 9,141   |   |       |   | 10,399  |             |   |   | (12        | %)     |   |   | 18,671 |   |   |   | 21,659 |   |   |   | (14 | %) |
|                           |   |               |    |   |       |   |    |             |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Business Services              |   |               |    |   |       |   |    |             |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wireless                       |   |               | 764     |   |       |   | 791     |             |   |   | (3         | %)     |   |   | 1,443 |   |   |   | 1,454 |   |   |   | (1 | %) |
| Data                           |   |               | 39,394  |   |       |   | 34,308  |             |   |   | 15         | %      |   |   | 79,530 |   |   |   | 69,441 |   |   |   | 15 | % |
| Video                          |   |               | 3,467   |   |       |   | 3,236   |             |   |   | 7          | %      |   |   | 6,592 |   |   |   | 6,356 |   |   |   | 4 | % |
| Voice                          |   |               | 13,253  |   |       |   | 12,279  |             |   |   | 8          | %      |   |   | 25,580 |   |   |   | 24,483 |   |   |   | 4 | % |
|                           |   |               |    |   |       |   |    |             |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Managed Broadband              |   |               |    |   |       |   |    |             |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Data                           |   |               | 23,370  |   |       |   | 21,717  |             |   |   | 8          | %      |   |   | 46,050 |   |   |   | 40,746 |   |   |   | 13 | % |
| Voice                          |   |               | 5,380   |   |       |   | 5,409   |             |   |   | (1         | %)     |   |   | 10,719 |   |   |   | 10,946 |   |   |   | (2 | %) |
| Total Wireline segment revenue |   | $                  | 154,102 |   |       |   | 145,744 |             |   |   | 6          | %      |   |   | 306,481 |   |   |   | 288,207 |   |   |   | 6 | % |

----

|                                      |   | Three Months Ended |   |   |       |   |   | Six Months Ended |   |   |       |   |
|-------------------------------------------|--------|--------------------|--------|--------|------------|--------|--------|------------------|--------|--------|------------|--------|
|                                      |   | June 30,           |   |   | Percentage |   |   | June 30,         |   |   | Percentage |   |
|                                      |   | 2013               |   |   | 2012       |   |   | Change           |   |   | 2013       |   |   | 2012 |   |   | Change |   |
| Consumer                                  |   | $                  | 19,437 |   |       |   | 19,309 |             |   |   | 1          | %      |   |   | 39,627 |   |   |   | 37,799 |   |   |   | 5 | % |
| Business Services                         |   |               | 23,541 |   |       |   | 18,996 |             |   |   | 24         | %      |   |   | 48,077 |   |   |   | 38,276 |   |   |   | 26 | % |
| Managed Broadband                         |   |               | 6,148  |   |       |   | 5,798  |             |   |   | 6          | %      |   |   | 11,620 |   |   |   | 12,317 |   |   |   | (6 | %) |
| Total Wireline segment Cost of Goods Sold |   | $                  | 49,126 |   |       |   | 44,103 |             |   |   | 11         | %      |   |   | 99,324 |   |   |   | 88,392 |   |   |   | 12 | % |

|                             |   | Three Months Ended |   |   |       |   |   | Six Months Ended |   |   |       |   |
|----------------------------------|--------|--------------------|--------|--------|------------|--------|--------|------------------|--------|--------|------------|--------|
|                             |   | June 30,           |   |   | Percentage |   |   | June 30,         |   |   | Percentage |   |
|                             |   | 2013               |   |   | 2012       |   |   | Change           |   |   | 2013       |   |   | 2012 |   |   | Change |   |
| Wireline segment Adjusted EBITDA |   | $                  | 47,866 |   |       |   | 46,831 |             |   |   | 2          | %      |   | $ | 91,326 |   |   |   | 88,587 |   |   |   | 3 | % |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                          |   | June 30, |    |   | Percentage |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2013     |    |   | 2012       |   |   | Change |   |
| Consumer                                                                                                                                                                                                                                                                                                                                                                                                                      |   |     |    |   |       |   |   |   |   |
| Data:                                                                                                                                                                                                                                                                                                                                                                                                                         |   |     |    |   |       |   |   |   |   |
| Cable modem subscribers1                                                                                                                                                                                                                                                                                                                                                                                                 |   |     | 115,600 |   |       |   | 111,700 |   |   |   | 3 | % |
| Video:                                                                                                                                                                                                                                                                                                                                                                                                                        |   |     |    |   |       |   |   |   |   |   |   |   |
| Basic subscribers2                                                                                                                                                                                                                                                                                                                                                                                                       |   |     | 119,600 |   |       |   | 122,500 |   |   |   | (2 | %) |
| Digital programming tier subscribers3                                                                                                                                                                                                                                                                                                                                                                                    |   |     | 69,500  |   |       |   | 72,200 |   |   |   | (4 | %) |
| HD/DVR converter boxes4                                                                                                                                                                                                                                                                                                                                                                                                  |   |     | 89,900  |   |       |   | 88,400 |   |   |   | 2 | % |
| Homes passed                                                                                                                                                                                                                                                                                                                                                                                                                  |   |     | 245,100 |   |       |   | 242,400 |   |   |   | 1 | % |
| Average monthly gross revenue per subscriber - quarter-to-date5                                                                                                                                                                                                                                                                                                                                                          |   | $        | 76.47   |   |       | $      | 78.89 |   |   |   | (3 | %) |
| Average monthly gross revenue per subscriber - year-to-date6                                                                                                                                                                                                                                                                                                                                                             |   | $        | 76.51   |   |       | $      | 78.32 |   |   |   | (2 | %) |
| Voice:                                                                                                                                                                                                                                                                                                                                                                                                                        |   |     |    |   |       |   |   |   |   |   |   |   |
| Total local access lines in service7                                                                                                                                                                                                                                                                                                                                                                                     |   |     | 65,200  |   |       |   | 74,400 |   |   |   | (12 | %) |
| Local access lines in service on GCI facilities7                                                                                                                                                                                                                                                                                                                                                                         |   |     | 60,800  |   |       |   | 69,300 |   |   |   | (12 | %) |
| Business Services                                                                                                                                                                                                                                                                                                                                                                                                             |   |     |    |   |       |   |   |   |   |   |   |   |
| Data:                                                                                                                                                                                                                                                                                                                                                                                                                         |   |     |    |   |       |   |   |   |   |   |   |   |
| Cable modem subscribers1                                                                                                                                                                                                                                                                                                                                                                                                 |   |     | 14,100  |   |       |   | 11,800 |   |   |   | 19 | % |
| Voice:                                                                                                                                                                                                                                                                                                                                                                                                                        |   |     |    |   |       |   |   |   |   |   |   |   |
| Total local access lines in service7                                                                                                                                                                                                                                                                                                                                                                                     |   |     | 50,500  |   |       |   | 51,800 |   |   |   | (3 | %) |
| Local access lines in service on GCI facilities7                                                                                                                                                                                                                                                                                                                                                                         |   |     | 35,600  |   |       |   | 30,200 |   |   |   | 18 | % |
| Combined Consumer and Business Services                                                                                                                                                                                                                                                                                                                                                                                       |   |     |    |   |       |   |   |   |   |   |   |   |
| Wireless                                                                                                                                                                                                                                                                                                                                                                                                                      |   |     |    |   |       |   |   |   |   |   |   |   |
| Consumer Lifeline wireless lines in service8                                                                                                                                                                                                                                                                                                                                                                             |   |     | 32,600  |   |       |   | 39,900 |   |   |   | (18 | %) |
| Consumer Non-Lifeline wireless lines in service9                                                                                                                                                                                                                                                                                                                                                                         |   |     | 92,800  |   |       |   | 84,900 |   |   |   | 9 | % |
| Business Services Non-Lifeline wireless lines in service9                                                                                                                                                                                                                                                                                                                                                                |   |     | 17,500  |   |       |   | 16,200 |   |   |   | 8 | % |
| Total wireless lines in service                                                                                                                                                                                                                                                                                                                                                                                               |   |     | 142,900 |   |       |   | 141,000 |   |   |   | 1 | % |
| Average monthly gross revenue per subscriber - quarter-to-date10                                                                                                                                                                                                                                                                                                                                                         |   | $        | 49.99   |   |       | $      | 47.29 |   |   |   | 6 | % |
| Average monthly gross revenue per subscriber - year-to-date11                                                                                                                                                                                                                                                                                                                                                            |   | $        | 49.63   |   |       | $      | 46.90 |   |   |   | 6 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 1 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 video service is not required to receive cable modem service.                                      |   |
| 2 A basic subscriber is defined as one basic tier of service delivered to an address or separate subunits thereof regardless of the number of outlets purchased.                                                                                                                                                                                                                                                         |   |
| 3 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.                                                                                                                   |   |
| 4 A high-definition/digital video recorder ("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.                                                                                                                                                   |   |
| 5 Applicable average monthly video revenues divided by the average number of basic subscribers at the beginning and end of each month in the period ("Video ARPU") for the three months ended June 30, 2013 and 2012.                                                                                                                                                                                                    |   |
| 6 Video ARPU for the six months ended June 30, 2013 and 2012.                                                                                                                                                                                                                                                                                                                                                            |   |
| 7 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                                                                                                                                                                                                   |   |
| 8 A Lifeline wireless line in service is defined as a revenue generating wireless device that is eligible for Lifeline support. The Universal Service Fund's Lifeline program is administered by the Universal Service Administrative Company and is designed to ensure that quality telecommunications services are available to low-income customers at affordable rates.                                         |   |
| 9 A non-Lifeline wireless line in service is defined as a revenue generating wireless device that is not eligible for Lifeline support.                                                                                                                                                                                                                                                                                  |   |
| 10 Average monthly wireless revenues, excluding those from other common carrier customers, divided by the average of wireless subscribers at the beginning and end of each month in the period ("Wireless ARPU"). Revenue used for this calculation includes Wireline segment - Consumer - Wireless and Wireline segment - Business Services - Wireless revenues for the three months ended June 30, 2013 and 2012. |   |
| 11 Wireless ARPU for the six months ended June 30, 2013 and 2013. Revenue used for this calculation includes Wireline segment - Consumer - Wireless and Wireline segment - Business Services - Wireless revenues.                                                                                                                                                                                                   |   |

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| ·   | A $1.8 million and $3.0 million increase in labor costs for the three and six months ended June 30, 2013, respectively, when compared to the same periods in 2012, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $0.8 million and $1.7 million increase in contract labor related to non-capitalizable network projects for our ConnectMD® and SchoolAccess® customers for the three and six months ended June 30, 2013, respectively, when compared to the same periods in 2012, and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $0.7 million increase in share-based compensation expense for the three months ended June 30, 2013 when compared to the same period in 2012. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                 |   | Six Months Ended |    |
|------------------------------------------------------|--------|------------------|---------|
|                                                 |   | June 30,         |    |
|                                                 |   | 2013             |    |   | 2012 |   |
| Operating activities                                 |   | $                | 76,316  |   |   |   | 53,140 |   |
| Investing activities                                 |   |             | (76,716 | ) |   |   | (62,118 | ) |
| Financing activities                                 |   |             | 1,726   |   |   |   | 358 |   |
| Net increase (decrease) in cash and cash equivalents |   | $                | 1,326   |   |   |   | (8,620 | ) |

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| Exhibit No. | Description                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by our President and Director *                                                                                                                                                                                                                                                                       |
| 31.2   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by our Treasurer and Director *                                                                                                                                                                                                                                                                       |
| 32.1   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by our President and Director *                                                                                                                                                                                                                                                                       |
| 32.2   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by our Treasurer and Director *                                                                                                                                                                                                                                                                       |
| 101    | The following materials from GCI, Inc.'s Quarterly Report on Form10-Q for the quarter ended June 30, 2013, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Income Statements; (iii) Consolidated Statements of Stockholder's Equity; (iv) Consolidated Statements of Cash Flows; and (v) Condensed Notes to Interim Consolidated Financial Statements *  |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |
| *           | Filed herewith.                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |

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| Signature                  |   | Title                                  |   | Date                        |
|----------------------------|--------|----------------------------------------|--------|-----------------------------|
|                       |   |                                   |   |                        |
|                       |   |                                   |   |                        |
| /s/ Gregory F. Chapados    |   | President and Director                 |   |   August 1, 2013       |
| Gregory F. Chapados        |   | (Principal Executive Officer)          |   |                        |
|                       |   |                                   |   |                        |
| /s/ John M. Lowber    |   | Treasurer and Director                 |   |   August 1, 2013  |
| John M. Lowber             |   | (Principal Financial Officer)          |   |                        |
|                       |   |                                   |   |                        |
| /s/ Lynda L. Tarbath  |   | Vice President, Chief Accounting       |   |   August 1, 2013       |
| Lynda L. Tarbath           |   | Officer (Principal Accounting Officer) |   |                        |

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