Forward looking statements
  The following contains forward looking statements regardingthe company’s expected results which are based onmanagement expectations as well as on a number ofassumptions concerning future events. Actual results mightdiffer materially from those projected in the forward lookingstatements due to uncertainties and other factors, many ofwhich are outside GCI’s control. Additional informationconcerning factors that could cause actual results to differmaterially from those in the forward looking statements iscontained in GCI’s cautionary statements sections of Form 10Kand 10-Q files with the Securities and Exchange Commission.
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GCI’s growth continues
 In 1982 GCI completed its first phone call.
 —  30 years and $2 billion in investments later GCI has theonly statewide, facilities based network providing
 —  Voice
 —  Data
 —  Video
 —  Wireless
 In 2012 GCI and Alaska Communications announce acombination of their wireless assets to provide a robust,statewide network with the spectrum mix, scale, advancedtechnology and cost structure necessary to compete withVerizon and ATT in Alaska.
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The Alaska Wireless Network Assets
 Notes:
 —  Companies will retain their retail customer bases and receive a 30% discount for wireless salesand marketing.
 —  GCI will consolidate the AWN financials.
 —  In 2011 Alaska Communications reported $68.4 million of wireless EBITDA and GCI hadapproximately $60 million.
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AWN Ownership
 Initial Payment: GCI pays Alaska Communications $100 millionon closing
 Ownership: GCI two-thirds, Alaska Communications one-third
 Management fee: GCI will manage the enterprise and receive 4%to 8% of FCF (prior to distributions) as a management fee.
 Preferred Payments: Alaska Communications will receive thefirst $50 million in FCF in years 1 and 2 and the first $45 millionin years 3 and 4.GCI will receive all remaining FCF in the firstfour years.These preferred payments in aggregate areestimated to represent a premium of ~ $60 million over AlaskaCommunications’ one-third ownership interest during the firstfour years.
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Spectrum
 Note that there are differences in spectrum across the state but
Anchorage is representative of the total.
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Spectrum
 —  Significantly improved spectrum position .
 —  850 provides better propagation - lower capex.
 —  HSPA+ can be deployed in both 850 & 1900.
 —  AWS provides the ability to build out LTE now ratherthan wait for LTE handsets in 1900.
 —  AWN gains access to twice as much total spectrum.
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Synergies
 Duplicative Costs Reduced
 —  ~200 urban macro cells
 —  Switch engineering and maintenance
 —  Future fiber builds to the sites
 Scale
 —  Twice as large as Alaska Communications & GCIseparately
 Estimated annual savings
 —  ~$15 million per year in opex
 —  ~$15 million per year in capex
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Financials
 —  GCI to pay Alaska Communications $100 million atclosing
 —  Preferential payments to Alaska Communications of~$60 million over their ownership percentage are partof the $190 million of fixed payments
 —  GCI expects its FCF to improve by 2/3rds of the $30million in synergies
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Summary
 —  GCI will have the spectrum, scale and cost structureto more effectively compete against the two nationalcarriers in the market. For a $100 million investmentGCI gains majority interest in a wireless networkoperation twice the size of its current one, charts arapid path to LTE deployment and generatesapproximately $20 million per year in additional cashflow before financing costs.
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