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|   | 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 principal executive offices) |   | (Zip Code) |   |

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

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|                                                          |                                                                                         |                                                                                                                   | Page No. |
|---------------------------------------------------------------|----------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|----------|
|                                                          |                                                                                         |                                                                                                                   |     |
| Cautionary Statement Regarding Forward-Looking Statements     | 4                                                                                            |
|                                                          |                                                                                         |                                                                                                                   |     |
| Part I                                                        |                                                                                         |                                                                                                                   |     |
|                                                          | Item 1.                                                                                      | Business                                                                                                               | 4        |
|                                                          | Item 1A.                                                                                     | Risk Factors                                                                                                           | 31       |
|                                                          | Item 1B.                                                                                     | Unresolved Staff Comments                                                                                              | 40       |
|                                                          | Item 2.                                                                                      | Properties                                                                                                             | 40       |
|                                                          | Item 3.                                                                                      | Legal Proceedings                                                                                                      | 40       |
|                                                          | Item 4.                                                                                      | Mine Safety Disclosures                                                                                                | 41       |
|                                                          |                                                                                         |                                                                                                                   |     |
| Part                                                          | II                                                                                           |                                                                                                                   |     |
|                                                          | Item 5.                                                                                      | Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 41       |
|                                                          | Item 6.                                                                                      | Selected Financial Data                                                                                                | 41       |
|                                                          | Item 7.                                                                                      | Management’s Discussion and Analysis of Financial Condition and Results of Operations                            | 42       |
|                                                          | Item 7A.                                                                                     | Quantitative and Qualitative Disclosures About Market Risk                                                             | 65       |
|                                                          | Item 8.                                                                                      | Consolidated Financial Statements and Supplementary Data                                                               | 65       |
|                                                          | Item 9.                                                                                      | Changes In and Disagreements With Accountants on Accounting and Financial Disclosure                                   | 65       |
|                                                          | Item 9A.                                                                                     | Controls and Procedures                                                                                                | 65       |
|                                                          | Item 9B.                                                                                     | Other Information                                                                                                      | 66       |
|                                                          |                                                                                         |                                                                                                                   |     |
| Part III                                                      |                                                                                         |                                                                                                                   |     |
|                                                          | Items 10, 11, 12, 13 and 14 are omitted per General Instruction I(1)(a) and (b) of Form 10-K | 66                                                                                                                     |
|                                                          |                                                                                         |                                                                                                                   |     |
| Part IV                                                       |                                                                                         |                                                                                                                   |     |
| Item 15. Exhibits, Consolidated Financial Statement Schedules | 67                                                                                           |
|                                                          |                                                                                         |                                                                                                                   |     |
| SIGNATURES                                                    |                                                                                         | 119                                                                                                               |

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

|                             |   | Year Ended December 31, |    |
|----------------------------------|--------|-------------------------|---------|
|                             |   | 2012                    |    |   | 2011 |   |   | 2010 |   |
| Total Consumer segment revenues1 |   | $                       | 352,972 |   |   |   | 352,574 |   |   |   | 342,898 |   |

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

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

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

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

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

| ·   | Our Anchorage facility consists of routers, a bank of servers that perform support and application functions, database servers providing authentication and user demographic data, layer two and layer three gigabit, 10 gigabit and 100 gigabit switch networks for intercommunications and broadband services. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                   |   | Year Ended December 31, |    |
|----------------------------------------|--------|-------------------------|---------|
|                                   |   | 2012                    |    |   | 2011 |   |   | 2010 |   |
| Total Network Access segment revenues1 |   | $                       | 105,447 |   |   |   | 105,456 |   |   |   | 107,227 |   |

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|                               |   | Year Ended December 31, |    |
|------------------------------------|--------|-------------------------|---------|
|                               |   | 2012                    |    |   | 2011 |   |   | 2010 |   |
| Total Commercial segment revenues1 |   | $                       | 143,575 |   |   |   | 136,101 |   |   |   | 128,458 |   |

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|                                      |   | Year Ended December 31, |   |
|-------------------------------------------|--------|-------------------------|--------|
|                                      |   | 2012                    |   |   | 2011 |   |   | 2010 |   |
| Total Managed Broadband segment revenues1 |   | $                       | 86,562 |   |   |   | 63,248 |   |   |   | 49,962 |   |

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

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

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

|                                         |   | Year Ended December 31, |   |
|----------------------------------------------|--------|-------------------------|--------|
|                                         |   | 2012                    |   |   | 2011 |   |   | 2010 |   |
| Total Regulated Operations segment revenues1 |   | $                       | 21,625 |   |   |   | 22,002 |   |   |   | 22,705 |   |

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

| ·   | A local multipoint distribution system ("LMDS") license which we acquired in 1998 for use of a 150 MHz block of spectrum in the 28 GHz Ka-band for providing wireless services.  The LMDS license was renewed in 2008 for an additional 10-year term, following the grant of an extension until June 1, 2012, of the requirement to provide “substantial service” in the service region.  We timely satisfied this condition, as reflected in the required FCC filing on June 1, 2012. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 25 MHz cellular licenses for sites located in the Wade Hampton AK-1 portion of CMA315 (A and B blocks) and in the Bethel AK-2 portion of CMA 316 (A block), and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Several 25 MHz cellular B licenses are held by our subsidiary Unicom for sites located in the Wade Hampton AK-1 portion of CMA 315 and the Bethel AK-2 portion of CMA 316, and operated by GCICC pursuant to a de facto long-term spectrum lease. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | 41% are located in the Municipality of Anchorage, |
|--------------------|---------------------------------------------------|

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

| ·   | 13% are located in the Matanuska-Susitna Borough, |
|--------------------|---------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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

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

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

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|                                                                                            |   | Years Ended December 31, |      |
|-------------------------------------------------------------------------------------------------|--------|--------------------------|-----------|
|                                                                                            |   | 2012                     |      |   | 2011 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| (Amounts in thousands)                                                                          |   |
| Revenues                                                                                        |   | $                        | 710,181   |   |   |   | 679,381 |   |   |   | 651,250 |   |   |   | 595,811 |   |   |   | 575,442 |   |
| Income (loss) before income taxes                                                               |   | $                        | 21,250    |   |   |   | 12,891 |   |   |   | 17,858 |   |   |   | 6,867 |   |   |   | (2,880 | ) |
| Net income (loss)                                                                               |   | $                        | 9,162     |   |   |   | 5,486 |   |   |   | 8,610 |   |   |   | 3,172 |   |   |   | (3,716 | ) |
| Net loss attributable to  non-controlling interests                                   |   | $                        | 511       |   |   |   | 238 |   |   |   | - |   |   |   | - |   |   |   | 1,503 |   |
| Net income (loss) attributable to GCI, Inc. common stockholder                             |   | $                        | 9,673     |   |   |   | 5,724 |   |   |   | 8,610 |   |   |   | 3,172 |   |   |   | (2,213 | ) |
| Total assets                                                                                    |   | $                        | 1,502,616 |   |   |   | 1,444,663 |   |   |   | 1,350,467 |   |   |   | 1,417,335 |   |   |   | 1,335,301 |   |
| Long-term debt, including current  portion and net of unamortized  discount |   | $                        | 877,051   |   |   |   | 861,272 |   |   |   | 781,717 |   |   |   | 776,380 |   |   |   | 716,831 |   |
| Obligations under capital leases,  including current portion                          |   | $                        | 80,612    |   |   |   | 86,054 |   |   |   | 91,165 |   |   |   | 95,914 |   |   |   | 100,329 |   |
| Total GCI, Inc. stockholder's equity                                                            |   | $                        | 153,272   |   |   |   | 155,682 |   |   |   | 199,099 |   |   |   | 265,255 |   |   |   | 258,197 |   |
| Dividends declared per common share                                                             |   | $                        | -         |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |

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|                                                  |                         |           |                    |   |   |   | Percentage |   | Percentage |
|-------------------------------------------------------|------------------------------|----------------|-------------------------|--------|--------|--------|------------|--------|------------|
|                                                  |                         |           |                    |   |   |   | Change1    |   | Change1    |
|                                                  |                         |           | Year Ended December 31, |   | 2012   |   | 2011       |
|                                                  |                         |           | 2012                    | 2011   | 2010   |   | vs. 2011   |   | vs. 2010   |
|                                                  |                         |           |                    |   |   |   |       |   |       |
| Statements of Operations Data:                        |                         |           |                    |   |   |   |       |
| Revenues:                                             |                         |           |                    |   |   |   |       |   |
|                                                  | Consumer segment             |           | 50%                     | 52%    | 53%    |   | 0%         |   | 3%         |
|                                                  | Network Access segment       | 15%            | 16%                     | 16%    |   | 0%     |       | (2%)   |
|                                                  | Commercial segment           |           | 20%                     | 20%    | 20%    |   | 5%         |   | 6%         |
|                                                  | Managed Broadband segment    | 12%            | 9%                      | 8%     |   | 37%    |       | 27%    |
|                                                  | Regulated Operations segment | 3%             | 3%                      | 3%     |   | (2%)   |       | (3%)   |
|                                                  |                         | Total revenues | 100%                    | 100%   | 100%   |   | 5%         |   | 4%         |
| Selling, general and administrative expenses          | 34%                          | 35%            | 35%                     |   | 3%     |   | 3%         |
| Depreciation and amortization expense                 | 18%                          | 19%            | 20%                     |   | 4%     |   | (1%)       |
| Operating income                                      |                         | 13%            | 13%                     | 14%    |   | (2%)   |       | 3%     |
| Other expense, net                                    |                         | 10%            | 11%                     | 11%    |   | (13%)  |       | 11%    |
| Income before income taxes                            |                         | 3%             | 2%                      | 3%     |   | 65%    |       | (28%)  |
| Net income                                            |                         | 1%             | 1%                      | 1%     |   | 67%    |       | (36%)  |
| Net loss attributable to the non-controlling interest | 0%                           | 0%             | 0%                      |   | 115%   |   | 0%         |
| Net income attributable to GCI, Inc.                  | 1%                           | 1%             | 1%                      |   | 69%    |   | (34%)      |
|                                                  |                         |           |                    |   |   |   |       |   |       |
| 1 Percentage change in underlying data                |                         |           |                    |   |   |   |       |

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|                           |   |   |    |   | Percentage |   |
|--------------------------------|--------|--------|---------|--------|------------|--------|
|                           |   | 2012   |    |   | 2011       |   |   | Change |   |
| Voice                          |   | $      | 41,439  |   |       |   | 52,052 |   |   |   | (20 | %) |
| Video                          |   |   | 115,307 |   |       |   | 118,635 |   |   |   | (3 | %) |
| Data                           |   |   | 86,466  |   |       |   | 71,977 |   |   |   | 20 | % |
| Wireless                       |   |   | 109,760 |   |       |   | 109,910 |   |   |   | 0 | % |
| Total Consumer segment revenue |   | $      | 352,972 |   |       |   | 352,574 |   |   |   | 0 | % |

|                                      |   |   |    |   | Percentage |   |
|-------------------------------------------|--------|--------|---------|--------|------------|--------|
|                                      |   | 2012   |    |   | 2011       |   |   | Change |   |
| Voice                                     |   | $      | 9,146   |   |       |   | 10,660 |   |   |   | (14 | %) |
| Video                                     |   |   | 51,230  |   |       |   | 53,556 |   |   |   | (4 | %) |
| Data                                      |   |   | 5,896   |   |       |   | 4,771 |   |   |   | 24 | % |
| Wireless                                  |   |   | 62,052  |   |       |   | 41,706 |   |   |   | 49 | % |
| Total Consumer segment Cost of Goods Sold |   | $      | 128,324 |   |       |   | 110,693 |   |   |   | 16 | % |

|                             |   |   |   |   | Percentage |   |
|----------------------------------|--------|--------|--------|--------|------------|--------|
|                             |   | 2012   |   |   | 2011       |   |   | Change |   |
| Consumer segment Adjusted EBITDA |   | $      | 88,858 |   |       |   | 110,734 |   |   |   | (20 | %) |

|   |      |                                                   |   | December 31,        |   | Percentage          |   |   |
|--------|-----------|--------------------------------------------------------|--------|---------------------|--------|---------------------|--------|--------|
|   |      |                                                   |   | 2012           |   | 2011           |   | Change |   |   |
|   | Voice:    |                                                   |   |                |   |                |   |   |   |
|   |      | Total local access lines in service1              |   |  69,700   |   |  77,600   |   | (10%)  |   |   |
|   |      | Local access lines in service on GCI facilities1  |   |  64,900   |   |  72,000   |   | (10%)  |   |   |
|   | Video:    |                                                   |   |                |   |                |   |   |   |
|   |      | Basic subscribers2                                |   |  122,300  |   |  125,000  |   | (2%)   |   |   |
|   |      | Digital programming tier subscribers3             |   |  72,500   |   |  75,600   |   | (4%)   |   |   |
|   |      | HD/DVR converter boxes4                           |   |  90,400   |   |  89,400   |   | 1%     |   |   |
|   |      | Homes passed                                           |   |  243,600  |   |  242,100  |   | 1%     |   |   |
|   |      | Average monthly gross revenue per subscriber5     |   | $ 77.98             |   | $ 77.43             |   | 1%     |   |   |
|   | Data:     |                                                   |   |                |   |                |   |   |   |
|   |      | Cable modem subscribers6                          |   |  115,600  |   |  108,300  |   | 7%     |   |   |
|   | Wireless: |                                                   |   |                |   |                |   |   |   |
|   |      | Lifeline wireless lines in service7               |   |  32,400   |   |  42,400   |   | (24%)  |   |   |
|   |      | Non-Lifeline wireless lines in service8           |   |  90,600   |   |  82,200   |   | 10%    |   |   |
|   |      | Average monthly gross revenue per subscriber9     |   | $ 69.02             |   | $ 68.34             |   | 1%     |   |   |

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|   |                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|   | 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                                                                                                                                                              |   |
|   | 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 Average monthly consumer video revenues divided by the average number of consumer basic subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                                         |   |
|   | 6 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. |   |
|   | 7 A Lifeline wireless line in service is defined as a revenue generating wireless device that is eligible for Lifeline support.                                                                                                                                                                                                                                                     |   |
|   | 8 A non-Lifeline wireless line in service is defined as a revenue generating wireless device that is not eligible for Lifeline support.                                                                                                                                                                                                                                             |   |
|   | 9 Average monthly consumer wireless revenues divided by the average of consumer wireless subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                                          |   |

| ·   | A 21% decrease in local service plan fee revenue to $15.9 million due to decreased subscribers and a February 2012 rate decrease to one of our popular plans, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 21% decrease in local service high cost support to $8.3 million due to the changes in the high cost support program as discussed above in the General Overview section of this Item 7 and a decrease in subscribers, and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 39% decrease in long-distance usage to $2.4 million due to the lower rates mandated by the Intrastate Access Reform Act (“Intrastate Access Reform”) which went into effect in July 2011, along with our introduction of a popular new plan offering unlimited interstate and intrastate calling which went into effect in August 2011. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An 18% increase in cable modem revenue to $75.0 million due to increased subscribers and our subscribers’ selection of plans that offer higher speeds, and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 57% increase in excess usage revenue to $7.9 million due to customers moving from plans with unlimited usage to plans with limited usage. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 10% decrease in wireless high cost support to $31.9 million due to the changes in the high cost support program as discussed above in the General Overview section of this Item 2 and decreased subscribers, and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 16% decrease in Lifeline support to $14.2 million primarily due to decreased subscribers primarily resulting from the recertification program started in June 2012 and discussed above in the General Overview section of this Item 2. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                 |   |   |    |   | Percentage |   |
|--------------------------------------|--------|--------|---------|--------|------------|--------|
|                                 |   | 2012   |    |   | 2011       |   |   | Change |   |
| Voice                                |   | $      | 22,496  |   |       |   | 23,553 |   |   |   | (4 | %) |
| Data                                 |   |   | 56,194  |   |       |   | 62,456 |   |   |   | (10 | %) |
| Wireless                             |   |   | 26,757  |   |       |   | 19,447 |   |   |   | 38 | % |
| Total Network Access segment revenue |   | $      | 105,447 |   |       |   | 105,456 |   |   |   | 0 | % |

|                                            |   |   |   |   | Percentage |   |
|-------------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                            |   | 2012   |   |   | 2011       |   |   | Change |   |
| Voice                                           |   | $      | 9,275  |   |       |   | 12,194 |   |   |   | (24 | %) |
| Data                                            |   |   | 13,664 |   |       |   | 15,386 |   |   |   | (11 | %) |
| Wireless                                        |   |   | 1,417  |   |       |   | 1,164 |   |   |   | 22 | % |
| Total Network Access segment Cost of Goods Sold |   | $      | 24,356 |   |       |   | 28,744 |   |   |   | (15 | %) |

|                                   |   |   |   |   | Percentage |   |
|----------------------------------------|--------|--------|--------|--------|------------|--------|
|                                   |   | 2012   |   |   | 2011       |   |   | Change |   |
| Network Access segment Adjusted EBITDA |   | $      | 55,298 |   |       |   | 50,209 |   |   |   | 10 | % |

----

|                             |   |   |    |   | Percentage |   |
|----------------------------------|--------|--------|---------|--------|------------|--------|
|                             |   | 2012   |    |   | 2011       |   |   | Change |   |
| Voice                            |   | $      | 27,377  |   |       |   | 28,712 |   |   |   | (5 | %) |
| Video                            |   |   | 12,841  |   |       |   | 11,605 |   |   |   | 11 | % |
| Data                             |   |   | 93,434  |   |       |   | 85,961 |   |   |   | 9 | % |
| Wireless                         |   |   | 9,923   |   |       |   | 9,823 |   |   |   | 1 | % |
| Total Commercial segment revenue |   | $      | 143,575 |   |       |   | 136,101 |   |   |   | 5 | % |

|                                        |   |   |   |   | Percentage |   |
|---------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                        |   | 2012   |   |   | 2011       |   |   | Change |   |
| Voice                                       |   | $      | 9,872  |   |       |   | 13,083 |   |   |   | (25 | %) |
| Video                                       |   |   | 2,008  |   |       |   | 2,154 |   |   |   | (7 | %) |
| Data                                        |   |   | 48,576 |   |       |   | 45,475 |   |   |   | 7 | % |
| Wireless                                    |   |   | 6,439  |   |       |   | 4,458 |   |   |   | 44 | % |
| Total Commercial segment Cost of Goods Sold |   | $      | 66,895 |   |       |   | 65,170 |   |   |   | 3 | % |

|                               |   |   |   |   | Percentage |   |
|------------------------------------|--------|--------|--------|--------|------------|--------|
|                               |   | 2012   |   |   | 2011       |   |   | Change |   |
| Commercial segment Adjusted EBITDA |   | $      | 35,946 |   |       |   | 31,222 |   |   |   | 15 | % |

|                                                                                                                                                                                                                                              |   | December 31, |   |   | Percentage |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                              |   | 2012         |   |   | 2011       |   |   | Change |   |
| Voice:                                                                                                                                                                                                                                            |   |         |   |   |       |   |   |   |   |
| Total local access lines in service1                                                                                                                                                                                                         |   |         | 51,600 |   |       |   | 51,400 |   |   |   | 0 | % |
| Local access lines in service on GCI facilities                                                                                                                                                                                                   |   |         | 30,800 |   |       |   | 28,700 |   |   |   | 7 | % |
|                                                                                                                                                                                                                                              |   |         |   |   |       |   |   |   |   |   |   |   |
| Data:                                                                                                                                                                                                                                             |   |         |   |   |       |   |   |   |   |   |   |   |
| Cable modem subscribers2                                                                                                                                                                                                                     |   |         | 13,300 |   |       |   | 11,100 |   |   |   | 20 | % |
|                                                                                                                                                                                                                                              |   |         |   |   |       |   |   |   |   |   |   |   |
| Wireless:                                                                                                                                                                                                                                         |   |         |   |   |       |   |   |   |   |   |   |   |
| Wireless lines in service3                                                                                                                                                                                                                   |   |         | 17,000 |   |       |   | 15,300 |   |   |   | 11 | % |
|                                                                                                                                                                                                                                              |   |         |   |   |       |   |   |   |   |   |   |   |
| 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                       |   |
| 2 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. |   |
| 3 A wireless line in service is defined as a revenue generating wireless device.                                                                                                                                                             |   |

----

| ·   | A 9% increase in managed services project revenue to $50.2 million due to special project work, and |
|--------------------|-----------------------------------------------------------------------------------------------------|

| ·   | A 9% increase in internet revenue to $22.3 million primarily due to increased subscribers and increased excess usage. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | An $18.6 million increase in monthly contract revenue due to new ConnectMD® and SchoolAccess® customers and increased data network capacity purchased by our existing ConnectMD® and SchoolAccess® customers, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $3.1 million increase in product sales to our customers, and |
|--------------------|----------------------------------------------------------------|

| ·   | Recognition of $1.6 million in previously denied funding from the USAC for one ConnectMD® customer for the funding year July 2008 to June 2009.  We had appealed the funding denial and received notice during the second quarter of 2012 that our appeal was successful and the funding was reinstated. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                         |   | December 31, |   |   | Percentage |   |
|--------------------------------------------------------------|--------|--------------|--------|--------|------------|--------|
|                                                         |   | 2012         |   |   | 2011       |   |   | Change |   |
| Voice:                                                       |   |         |   |   |       |   |   |   |   |
| Total local access lines in service on GCI facilities1  |   |         | 8,300  |   |       |   | 9,100 |   |   |   | (9 | %) |

|   |                                                                                                                                                        |   |   |   |   |   |   |   |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|   | 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network. |   |

| ·   | A $4.2 million increase in labor costs, and |
|--------------------|---------------------------------------------|

| ·   | $2.9 million in transaction costs related to the transactions described in the Wireless Agreement as discussed in the General Overview section of this Item 7. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   |   |    |   | Percentage |   |
|--------------------------------|--------|--------|---------|--------|------------|--------|
|                           |   | 2011   |    |   | 2010       |   |   | Change |   |
| Voice                          |   | $      | 52,052  |   |       |   | 57,317 |   |   |   | (9 | %) |
| Video                          |   |   | 118,635 |   |       |   | 118,475 |   |   |   | 0 | % |
| Data                           |   |   | 71,977  |   |       |   | 61,364 |   |   |   | 17 | % |
| Wireless                       |   |   | 109,910 |   |       |   | 105,742 |   |   |   | 4 | % |
| Total Consumer segment revenue |   | $      | 352,574 |   |       |   | 342,898 |   |   |   | 3 | % |

----

|                                      |   |   |    |   | Percentage |   |
|-------------------------------------------|--------|--------|---------|--------|------------|--------|
|                                      |   | 2011   |    |   | 2010       |   |   | Change |   |
| Voice                                     |   | $      | 10,660  |   |       |   | 12,042 |   |   |   | (11 | %) |
| Video                                     |   |   | 53,556  |   |       |   | 51,246 |   |   |   | 5 | % |
| Data                                      |   |   | 4,771   |   |       |   | 3,781 |   |   |   | 26 | % |
| Wireless                                  |   |   | 41,706  |   |       |   | 37,412 |   |   |   | 11 | % |
| Total Consumer segment Cost of Goods Sold |   | $      | 110,693 |   |       |   | 104,481 |   |   |   | 6 | % |

|                             |   |   |    |   | Percentage |   |
|----------------------------------|--------|--------|---------|--------|------------|--------|
|                             |   | 2011   |    |   | 2010       |   |   | Change |   |
| Consumer segment Adjusted EBITDA |   | $      | 110,734 |   |       |   | 114,716 |   |   |   | (3 | %) |

|                                                                                                                                                                                                                                                                                                        |   | December 31, |    |   | Percentage |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                        |   | 2011         |    |   | 2010       |   |   | Change |   |
| Voice:                                                                                                                                                                                                                                                                                                      |   |         |    |   |       |   |   |   |   |
| Total local access lines in service1                                                                                                                                                                                                                                                                   |   |         | 77,600  |   |       |   | 84,800 |   |   |   | (8 | %) |
| Local access lines in service on GCI facilities1                                                                                                                                                                                                                                                       |   |         | 72,000  |   |       |   | 77,400 |   |   |   | (7 | %) |
| Video:                                                                                                                                                                                                                                                                                                      |   |         |    |   |       |   |   |   |   |   |   |   |
| Basic subscribers2                                                                                                                                                                                                                                                                                     |   |         | 125,000 |   |       |   | 130,000 |   |   |   | (4 | %) |
| Digital programming tier subscribers3                                                                                                                                                                                                                                                                  |   |         | 75,600  |   |       |   | 81,800 |   |   |   | (8 | %) |
| HD/DVR converter boxes4                                                                                                                                                                                                                                                                                |   |         | 89,400  |   |       |   | 88,100 |   |   |   | 1 | % |
| Homes passed                                                                                                                                                                                                                                                                                                |   |         | 242,100 |   |       |   | 238,500 |   |   |   | 2 | % |
| Average monthly gross revenue per subscriber5                                                                                                                                                                                                                                                          |   | $            | 77.43   |   |       | $      | 75.83 |   |   |   | 2 | % |
| Data:                                                                                                                                                                                                                                                                                                       |   |         |    |   |       |   |   |   |   |   |   |   |
| Cable modem subscribers6                                                                                                                                                                                                                                                                               |   |         | 108,300 |   |       |   | 105,700 |   |   |   | 2 | % |
| Wireless:                                                                                                                                                                                                                                                                                                   |   |         |    |   |       |   |   |   |   |   |   |   |
| Lifeline wireless lines in service7                                                                                                                                                                                                                                                                    |   |         | 42,400  |   |       |   | 45,000 |   |   |   | (6 | %) |
| Non-Lifeline wireless lines in service8                                                                                                                                                                                                                                                                |   |         | 82,200  |   |       |   | 79,900 |   |   |   | 3 | % |
| Average monthly gross revenue per subscriber9                                                                                                                                                                                                                                                          |   | $            | 68.34   |   |       | $      | 63.96 |   |   |   | 7 | % |
|                                                                                                                                                                                                                                                                                                        |   |         |    |   |       |   |   |   |   |   |   |   |
| 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                                                                                 |   |
| 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 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 Average monthly consumer video revenues divided by the average number of consumer basic subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                                         |   |
| 6 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. |   |
| 7 A Lifeline wireless line in service is defined as a revenue generating wireless device that is eligible for Lifeline support.                                                                                                                                                                                                                                                     |   |
| 8 A non-Lifeline wireless line in service is defined as a revenue generating wireless device that is not eligible for Lifeline support.                                                                                                                                                                                                                                             |   |
| 9 Average monthly consumer wireless revenues divided by the average of consumer wireless subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                                          |   |

|                                 |   |   |    |   | Percentage |   |
|--------------------------------------|--------|--------|---------|--------|------------|--------|
|                                 |   | 2011   |    |   | 2010       |   |   | Change |   |
| Voice                                |   | $      | 23,553  |   |       |   | 29,032 |   |   |   | (19 | %) |
| Data                                 |   |   | 62,456  |   |       |   | 61,494 |   |   |   | 2 | % |
| Wireless                             |   |   | 19,447  |   |       |   | 16,701 |   |   |   | 16 | % |
| Total Network Access segment revenue |   | $      | 105,456 |   |       |   | 107,227 |   |   |   | (2 | %) |

----

|                                            |   |   |   |   | Percentage |   |
|-------------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                            |   | 2011   |   |   | 2010       |   |   | Change |   |
| Voice                                           |   | $      | 12,194 |   |       |   | 15,383 |   |   |   | (21 | %) |
| Data                                            |   |   | 15,386 |   |       |   | 8,234 |   |   |   | 87 | % |
| Wireless                                        |   |   | 1,164  |   |       |   | 1,413 |   |   |   | (18 | %) |
| Total Network Access segment Cost of Goods Sold |   | $      | 28,744 |   |       |   | 25,030 |   |   |   | 15 | % |

|                                   |   |   |   |   | Percentage |   |
|----------------------------------------|--------|--------|--------|--------|------------|--------|
|                                   |   | 2011   |   |   | 2010       |   |   | Change |   |
| Network Access segment Adjusted EBITDA |   | $      | 50,209 |   |       |   | 50,259 |   |   |   | 0 | % |

| ·   | A $5.3 million Cost of Goods Sold classification change.  Prior to 2011 certain Cost of Goods Sold were classified as Network Access segment voice Cost of Goods Sold.  Beginning in 2011 these Cost of Goods Sold were reclassified to data Cost of Goods Sold for a more accurate presentation, and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $1.8 million in Cost of Goods Sold related to special project work. |
|--------------------|---------------------------------------------------------------------|

|                             |   |   |    |   | Percentage |   |
|----------------------------------|--------|--------|---------|--------|------------|--------|
|                             |   | 2011   |    |   | 2010       |   |   | Change |   |
| Voice                            |   | $      | 28,712  |   |       |   | 31,720 |   |   |   | (9 | %) |
| Video                            |   |   | 11,605  |   |       |   | 11,178 |   |   |   | 4 | % |
| Data                             |   |   | 85,961  |   |       |   | 76,823 |   |   |   | 12 | % |
| Wireless                         |   |   | 9,823   |   |       |   | 8,737 |   |   |   | 12 | % |
| Total Commercial segment revenue |   | $      | 136,101 |   |       |   | 128,458 |   |   |   | 6 | % |

----

|                                        |   |   |   |   | Percentage |   |
|---------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                        |   | 2011   |   |   | 2010       |   |   | Change |   |
| Voice                                       |   | $      | 13,083 |   |       |   | 15,212 |   |   |   | (14 | %) |
| Video                                       |   |   | 2,154  |   |       |   | 2,140 |   |   |   | 1 | % |
| Data                                        |   |   | 45,475 |   |       |   | 38,586 |   |   |   | 18 | % |
| Wireless                                    |   |   | 4,458  |   |       |   | 3,947 |   |   |   | 13 | % |
| Total Commercial segment Cost of Goods Sold |   | $      | 65,170 |   |       |   | 59,885 |   |   |   | 9 | % |

|                               |   |   |   |   | Percentage |   |
|------------------------------------|--------|--------|--------|--------|------------|--------|
|                               |   | 2011   |   |   | 2010       |   |   | Change |   |
| Commercial segment Adjusted EBITDA |   | $      | 31,222 |   |       |   | 30,871 |   |   |   | 1 | % |

|                                                                                                                                                                                                                                              |   | December 31, |   | Percentage |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|------------|
|                                                                                                                                                                                                                                              |   | 2011         |   |       | 2010 |   | Change |
| Voice:                                                                                                                                                                                                                                            |   |         |   |       |   |   |   |
| Total local access lines in service1                                                                                                                                                                                                         |   |         | 51,400 |       |   |   | 50,000 |   |   | 3 | % |
| Local access lines in service on GCI facilities                                                                                                                                                                                                   |   |         | 28,700 |       |   |   | 22,500 |   |   | 28 | % |
|                                                                                                                                                                                                                                              |   |         |   |       |   |   |   |   |   |   |   |   |
| Data:                                                                                                                                                                                                                                             |   |         |   |       |   |   |   |   |   |   |   |   |
| Cable modem subscribers2                                                                                                                                                                                                                     |   |         | 11,100 |       |   |   | 10,700 |   |   | 4 | % |
|                                                                                                                                                                                                                                              |   |         |   |       |   |   |   |   |   |   |   |   |
| Wireless:                                                                                                                                                                                                                                         |   |         |   |       |   |   |   |   |   |   |   |   |
| Wireless lines in service3                                                                                                                                                                                                                   |   |         | 15,300 |       |   |   | 13,800 |   |   | 11 | % |
| 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                       |   |         |
| 2 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. |   |         |
| 3 A wireless line in service is defined as a revenue generating wireless device.                                                                                                                                                             |   |         |

----

|                                                         |   | December 31, |   |   | Percentage |   |
|--------------------------------------------------------------|--------|--------------|--------|--------|------------|--------|
|                                                         |   | 2011         |   |   | 2010       |   |   | Change |   |
| Voice:                                                       |   |         |   |   |       |   |   |   |   |
| Total local access lines in service on GCI facilities1  |   |         | 9,100  |   |       |   | 10,000 |   |   |   | (9 | %) |

|   |                                                                                                                                                        |   |   |   |   |   |   |   |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                                                                                                                                                        |   |   |   |   |   |   |   |   |
|   | 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network. |   |

----

| ·   | A $1.6 million increase in labor costs, |
|--------------------|-----------------------------------------|

| ·   | A $1.2 million increase in health benefit costs, and |
|--------------------|------------------------------------------------------|

| ·   | A $1.2 million increase in bad debt expense primarily due to absence of settlements which resulted in the release of credit reserves in the third quarter of 2010. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                      |   | 2012   |     |   | 2011   |   |
|-------------------------------------------|--------|--------|----------|--------|--------|--------|
| Operating activities                      |   | $      | 152,776  |   |   |   | 134,458 |   |
| Investing activities                      |   |   | (168,905 | )      |   |   | (164,193 | ) |
| Financing activities                      |   |   | 8,984    |   |   |   | 25,688 |   |
| Net decrease in cash and cash equivalents |   | $      | (7,145   | )      |   |   | (4,047 | ) |

| ·   | A decrease in accounts receivable due to timing of payments, |
|--------------------|--------------------------------------------------------------|

| ·   | An increase in accounts payable due to timing of payments, and |
|--------------------|----------------------------------------------------------------|

| ·   | A decrease in accrued interest in 2011 due to a change in due dates for semi-annual interest payments on our 2021 Notes as compared to the senior unsecured notes due 2014 that were retired. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                          |   | Payments Due by Period |      |
|-----------------------------------------------|--------|------------------------|-----------|
|                                          |   | Total                  |      |   | Less than 1 Year |   |   | 1 to 3 Years |   |   | 4 to 5 Years |   |   | More Than 5 Years |   |
|                                          |
| Long-term debt                                |   | $                      | 879,794   |   |   |   | 1,928 |   |   |   | 92,912 |   |   |   | 2,905 |   |   |   | 782,049 |   |
| Interest on long-term debt                    |   |                   | 459,895   |   |   |   | 62,392 |   |   |   | 122,249 |   |   |   | 119,278 |   |   |   | 155,976 |   |
| Capital lease obligations, including interest |   |                   | 113,888   |   |   |   | 11,775 |   |   |   | 23,578 |   |   |   | 23,587 |   |   |   | 54,948 |   |
| Operating lease commitments                   |   |                   | 174,055   |   |   |   | 27,764 |   |   |   | 46,336 |   |   |   | 35,011 |   |   |   | 64,944 |   |
| Purchase obligations                          |   |                   | 36,574    |   |   |   | 33,101 |   |   |   | 3,473 |   |   |   | - |   |   |   | - |   |
| Total contractual obligations                 |   | $                      | 1,664,206 |   |   |   | 136,960 |   |   |   | 288,548 |   |   |   | 180,781 |   |   |   | 1,057,917 |   |

----

----

----

----

----

----

|                                                                                      |     |                                                                                                                                                                 |       |   |   |
|-------------------------------------------------------------------------------------------|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------|--------|
| (1)  Consolidated Financial Statements                                          | Page No. |
|                                                                                      |     |                                                                                                                                                                 |       |   |   |
|          Included in Part II of this Report: |     |
|                                                                                      |     |                                                                                                                                                                 |       |   |   |
|                                                                                      |     | Report of Independent Registered Public Accounting Firm                                                                                                              |       |   | 68     |
|                                                                                      |     |                                                                                                                                                                 |       |   |   |
|                                                                                      |     | Consolidated Balance Sheets, December 31, 2012 and 2011                                                                                                              |       |   | 69     |
|                                                                                      |     |                                                                                                                                                                 |       |   |   |
|                                                                                      |     | Consolidated Income Statements, years ended December 31, 2012, 2011 and 2010                                                                                         |       |   | 71     |
|                                                                                      |     |                                                                                                                                                                 |       |   |   |
|                                                                                      |     | Consolidated Statements of Stockholder’s Equity, years ended December 31, 2012, 2011 and 2010                                                                  |       |   | 72     |
|                                                                                      |     |                                                                                                                                                                 |       |   |   |
|                                                                                      |     | Consolidated Statements of Cash Flows, years ended December 31, 2012, 2011 and 2010                                                                                  |       |   | 73     |
|                                                                                      |     |                                                                                                                                                                 |       |   |   |
|                                                                                      |     | Notes to Consolidated Financial Statements                                                                                                                           |       |   | 74     |
|                                                                                      |     |                                                                                                                                                                 |       |   |   |
| (2)  Consolidated Financial Statement Schedules                                 |     |
|                                                                                      |     |                                                                                                                                                                 |       |   |   |
|                                                                                      |     | Schedules are omitted, as they are not required or are not applicable, or the required information is shown in the applicable financial statements or notes thereto. |       |   |   |
|                                                                                      |     |                                                                                                                                                                 |       |   |   |
| (3) Exhibits                                                                              |     |                                                                                                                                                                 |   108 |

----

----

|                                                                                                                                             |   |         |      |   |   |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|--------|-------------|
|                                                                                                                                             |   |
|                                                                                                                                             |   |
|                                                                                                                                             |   |         |      |   |   |        |
| GCI, INC. AND SUBSIDIARIES                                                                                                                       |   |
| CONSOLIDATED BALANCE SHEETS                                                                                                                      |   |
|                                                                                                                                             |   |
|                                                                                                                                             |   |         |      |   |   |        |
|                                                                                                                                             |   |         |      |   |   |        |
| (Amounts in thousands)                                                                                                                           |   | December 31, |      |
| ASSETS                                                                                                                                           |   | 2012         |      |   | 2011   |        |
|                                                                                                                                             |   |         |      |   |   |        |
| Current assets:                                                                                                                                  |   |         |      |   |   |        |
| Cash and cash equivalents                                                                                                                        |   | $            | 20,585    |   |   |        | 27,730 |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
| Receivables                                                                                                                                      |   |         | 150,436   |   |   |        | 141,827 |   |
| Less allowance for doubtful receivables                                                                                                          |   |         | 3,215     |   |   |        | 5,796 |   |
| Net receivables                                                                                                                                  |   |         | 147,221   |   |   |        | 136,031 |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
| Deferred income taxes                                                                                                                            |   |         | 12,897    |   |   |        | 15,555 |   |
| Prepaid expenses                                                                                                                                 |   |         | 8,441     |   |   |        | 7,899 |   |
| Inventories                                                                                                                                      |   |         | 12,098    |   |   |        | 7,522 |   |
| Other current assets                                                                                                                             |   |         | 1,678     |   |   |        | 3,631 |   |
| Total current assets                                                                                                                             |   |         | 202,920   |   |   |        | 198,368 |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
| Property and equipment in service, net of depreciation                                                                                           |   |         | 838,247   |   |   |        | 849,121 |   |
| Construction in progress                                                                                                                         |   |         | 94,418    |   |   |        | 42,918 |   |
| Net property and equipment                                                                                                                       |   |         | 932,665   |   |   |        | 892,039 |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
| Cable certificates                                                                                                                               |   |         | 191,635   |   |   |        | 191,635 |   |
| Goodwill                                                                                                                                         |   |         | 77,294    |   |   |        | 74,883 |   |
| Wireless licenses                                                                                                                                |   |         | 25,967    |   |   |        | 25,967 |   |
| Restricted cash                                                                                                                                  |   |         | 30,933    |   |   |        | 15,910 |   |
| Other intangible assets, net of amortization                                                                                                     |   |         | 16,560    |   |   |        | 15,835 |   |
| Deferred loan and senior notes costs, net of amortization  of $4,554 and $2,880 at December 31, 2012 and 2011,  respectively |   |         | 11,189    |   |   |        | 12,812 |   |
| Other assets                                                                                                                                     |   |         | 13,453    |   |   |        | 17,214 |   |
| Total other assets                                                                                                                               |   |         | 367,031   |   |   |        | 354,256 |   |
| Total assets                                                                                                                                     |   | $            | 1,502,616 |   |   |        | 1,444,663 |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
| See accompanying notes to consolidated financial statements.                                                                                     |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
|                                                                                                                                             |   |         |      |   |   |        |   |   |
|                                                                                                                                             |   |         |      |   |   | (Continued) |   |

----

| GCI, INC. AND SUBSIDIARIES                                                                 |   |
|--------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                |   |
| (Continued)                                                                                |   |
|                                                                                       |   |
|                                                                                       |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |
| (Amounts in thousands)                                                                     |   | December 31, |   |
| LIABILITIES AND STOCKHOLDER'S EQUITY                                                       |   | 2012 |   |   | 2011 |   |
|                                                                                       |   |   |   |   |   |   |
| Current liabilities:                                                                       |   |   |   |   |   |   |
| Current maturities of obligations under long-term debt and  capital leases       |   | $ | 7,923 |   |   |   | 8,797 |   |
| Accounts payable                                                                           |   |   | 52,384 |   |   |   | 41,353 |   |
| Deferred revenue                                                                           |   |   | 25,218 |   |   |   | 22,003 |   |
| Accrued payroll and payroll related obligations                                            |   |   | 19,440 |   |   |   | 22,126 |   |
| Accrued interest                                                                           |   |   | 6,786 |   |   |   | 6,680 |   |
| Accrued liabilities                                                                        |   |   | 15,242 |   |   |   | 11,423 |   |
| Subscriber deposits                                                                        |   |   | 1,366 |   |   |   | 1,250 |   |
| Total current liabilities                                                                  |   |   | 128,359 |   |   |   | 113,632 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
| Long-term debt, net                                                                        |   |   | 875,123 |   |   |   | 858,031 |   |
| Obligations under capital leases, excluding current maturities                             |   |   | 72,725 |   |   |   | 78,605 |   |
| Obligation under capital lease due to related party, excluding  current maturity |   |   | 1,892 |   |   |   | 1,893 |   |
| Deferred income taxes                                                                      |   |   | 123,661 |   |   |   | 114,234 |   |
| Long-term deferred revenue                                                                 |   |   | 89,815 |   |   |   | 81,822 |   |
| Other liabilities                                                                          |   |   | 25,511 |   |   |   | 24,456 |   |
| Total liabilities                                                                          |   |   | 1,317,086 |   |   |   | 1,272,673 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                              |   |   |   |   |   |   |   |   |
| Stockholder's equity:                                                                      |   |   |   |   |   |   |   |   |
| Class A common stock (no par). Authorized 10 shares;                                       |   |   |   |   |   |   |   |   |
| issued and outstanding 0.1 shares at December 31, 2012 and 2011                            |   |   | 206,622 |   |   |   | 206,622 |   |
| Paid-in capital                                                                            |   |   | 67,493 |   |   |   | 61,841 |   |
| Retained deficit                                                                           |   |   | (120,843 | ) |   |   | (112,781 | ) |
| Total GCI, Inc. stockholder's equity                                                       |   |   | 153,272 |   |   |   | 155,682 |   |
| Non-controlling interests                                                                  |   |   | 32,258 |   |   |   | 16,308 |   |
| Total stockholder's equity                                                                 |   |   | 185,530 |   |   |   | 171,990 |   |
| Total liabilities and stockholder's equity                                                 |   | $ | 1,502,616 |   |   |   | 1,444,663 |   |
|                                                                                       |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.                               |   |

----

|  GCI, INC. AND SUBSIDIARIES                                           |   |
|----------------------------------------------------------------------------|--------|
| CONSOLIDATED INCOME STATEMENTS                                             |   |
| YEARS ENDED DECEMBER 2012, 2011, AND 2010                                  |   |
|                                                                       |   |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |
|                                                                       |   |   |   |   |   |   |
| (Amounts in thousands)                                                     |   | 2012 |   |   | 2011 |   |   | 2010 |   |
| Revenues                                                                   |   | $ | 710,181 |   |   |   | 679,381 |   |   |   | 651,250 |   |
| Cost of goods sold (exclusive of depreciation and                          |   |   |   |   |   |   |   |   |   |   |   |   |
| amortization shown separately below)                                       |   |   | 247,501 |   |   |   | 227,399 |   |   |   | 207,817 |   |
| Selling, general and administrative expenses                               |   |   | 243,248 |   |   |   | 235,521 |   |   |   | 228,808 |   |
| Depreciation and amortization expense                                      |   |   | 130,452 |   |   |   | 125,937 |   |   |   | 126,699 |   |
|  Operating income                                                     |   |   | 88,980 |   |   |   | 90,524 |   |   |   | 87,926 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense (including amortization of  deferred loan fees) |   |   | (67,747 | ) |   |   | (68,258 | ) |   |   | (70,329 | ) |
| Loss on extinguishment of debt                                             |   |   | - |   |   |   | (9,111 | ) |   |   | - |   |
| Other                                                                      |   |   | 17 |   |   |   | (264 | ) |   |   | 261 |   |
|  Other expense, net                                                   |   |   | (67,730 | ) |   |   | (77,633 | ) |   |   | (70,068 | ) |
|    Income before income tax expense                         |   |   | 21,250 |   |   |   | 12,891 |   |   |   | 17,858 |   |
| Income tax expense                                                         |   |   | 12,088 |   |   |   | 7,405 |   |   |   | 9,248 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income                                               |   |   | 9,162 |   |   |   | 5,486 |   |   |   | 8,610 |   |
| Net loss attributable to non-controlling interests                         |   |   | 511 |   |   |   | 238 |   |   |   | - |   |
|   Net income attributable to GCI, Inc.                           |   | $ | 9,673 |   |   |   | 5,724 |   |   |   | 8,610 |   |
|                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.               |   |   |   |   |   |

----

| GCI, INC. AND SUBSIDIARIES                      |   |
|-------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY |   |
| YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010    |   |

| (Amounts in thousands)                                       |   | Shares of Class A Common Stock |   |   | Class A Common Stock |   |    | Paid-in Capital |   |   | Retained Earnings (Deficit) |   |   | Non-controlling Interests |     |   | Total Stockholder's Equity |   |
|--------------------------------------------------------------|--------|--------------------------------|--------|--------|----------------------|--------|---------|-----------------|--------|--------|-----------------------------|--------|--------|---------------------------|----------|--------|----------------------------|--------|
| Balances at January 1, 2010                                  |   |                           | 100    |   |                 | $      | 206,622 |            |   |   | 49,165                      |   |   |                      | 8,834    |   |                       |   | - |   |   |   | 264,621 |   |
| Net income                                                   |   |                           | -      |   |                 |   | -       |            |   |   | -                           |   |   |                      | 8,610    |   |                       |   | - |   |   |   | 8,610 |   |
| Distribution to General Communication, Inc.                  |   |                           | -      |   |                 |   |    |            |   |   | -                           |   |   |                      | (80,834  | )      |                       |   | - |   |   |   | (80,834 | ) |
| Contribution from General Communication, Inc.                |   |                           | -      |   |                 |   | -       |            |   |   | 5,409                       |   |   |                      | -        |   |                       |   | - |   |   |   | 5,409 |   |
| Balances at December 31, 2010                                |   |                           | 100    |   |                 |   | 206,622 |            |   |   | 54,574                      |   |   |                      | (63,390  | )      |                       |   | - |   |   |   | 197,806 |   |
| Net income (loss)                                            |   |                           | -      |   |                 |   | -       |            |   |   | -                           |   |   |                      | 5,724    |   |                       |   | (238) |   |   |   | 5,486 |   |
| Distribution to General Communication, Inc.                  |   |                           | -      |   |                 |   | -       |            |   |   | -                           |   |   |                      | (55,102  | )      |                       |   | - |   |   |   | (55,102 | ) |
| Contribution from General Communication, Inc.                |   |                           | -      |   |                 |   | -       |            |   |   | 7,267                       |   |   |                      | -        |   |                       |   | - |   |   |   | 7,267 |   |
| Investment by non-controlling interest                       |   |                           | -      |   |                 |   | -       |            |   |   | -                           |   |   |                      | -        |   |                       |   | 16,546 |   |   |   | 16,546 |   |
| Other                                                        |   |                           | -      |   |                 |   | -       |            |   |   | -                           |   |   |                      | (13      | )      |                       |   | - |   |   |   | (13 | ) |
| Balances at December 31, 2011                                |   |                           | 100    |   |                 |   | 206,622 |            |   |   | 61,841                      |   |   |                      | (112,781 | )      |                       |   | 16,308 |   |   |   | 171,990 |   |
| Net income (loss)                                            |   |                           | -      |   |                 |   | -       |            |   |   | -                           |   |   |                      | 9,673    |   |                       |   | (511 | ) |   |   | 9,162 |   |
| Distribution to General Communication, Inc.                  |   |                           | -      |   |                 |   | -       |            |   |   | -                           |   |   |                      | (17,701  | )      |                       |   | - |   |   |   | (17,701 | ) |
| Contribution from General Communication, Inc.                |   |                           | -      |   |                 |   | -       |            |   |   | 5,652                       |   |   |                      | -        |   |                       |   | - |   |   |   | 5,652 |   |
| Investment by non-controlling interest                       |   |                           | -      |   |                 |   | -       |            |   |   | -                           |   |   |                      | -        |   |                       |   | 16,461 |   |   |   | 16,461 |   |
| Other                                                        |   |                           | -      |   |                 |   | -       |            |   |   | -                           |   |   |                      | (34      | )      |                       |   | - |   |   |   | (34 | ) |
| Balances at December 31, 2012                                |   |                           | 100    |   |                 | $      | 206,622 |            |   |   | 67,493                      |   |   |                      | (120,843 | )      |                       |   | 32,258 |   |   |   | 185,530 |   |
|                                                         |   |                           |   |   |                 |   |    |            |   |   |                        |   |   |                      |     |   |                       |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements. |   |                           |   |   |                 |   |    |            |   |   |                        |   |   |                      |     |   |                       |   |   |   |   |   |   |   |

----

| GCI, INC. AND SUBSIDIARIES                                   |   |
|--------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                        |   |
| YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010                 |   |
|                                                         |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |
| (Amounts in thousands)                                       |   | 2012 |   |   | 2011 |   |   | 2010 |   |
| Cash flows from operating activities:                        |   |   |   |   |   |   |   |   |   |
| Net income                                                   |   | $ | 9,162 |   |   |   | 5,486 |   |   |   | 8,610 |   |
| Adjustments to reconcile net income to net cash              |   |   |   |   |   |   |   |   |   |   |   |   |
| provided by operating activities:                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization expense                        |   |   | 130,452 |   |   |   | 125,937 |   |   |   | 126,699 |   |
| Loss on extinguishment of debt                               |   |   | - |   |   |   | 9,111 |   |   |   | - |   |
| Deferred income tax expense                                  |   |   | 12,088 |   |   |   | 7,405 |   |   |   | 9,248 |   |
| Share-based compensation expense                             |   |   | 5,040 |   |   |   | 6,620 |   |   |   | 6,733 |   |
| Other noncash income and expense items                       |   |   | 6,644 |   |   |   | 8,579 |   |   |   | 6,725 |   |
| Change in operating assets and liabilities                   |   |   | (10,610 | ) |   |   | (28,680 | ) |   |   | 13,244 |   |
| Net cash provided by operating activities                    |   |   | 152,776 |   |   |   | 134,458 |   |   |   | 171,259 |   |
| Cash flows from investing activities:                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                          |   |   | (146,038 | ) |   |   | (177,090 | ) |   |   | (96,194 | ) |
| Restricted cash                                              |   |   | (25,244 | ) |   |   | (16,621 | ) |   |   | - |   |
| Grant proceeds                                               |   |   | 10,403 |   |   |   | 35,060 |   |   |   | - |   |
| Purchases of other assets and intangible assets              |   |   | (6,152 | ) |   |   | (5,423 | ) |   |   | (4,712 | ) |
| Purchase of businesses, net of cash received                 |   |   | (1,874 | ) |   |   | (352 | ) |   |   | (5,545 | ) |
| Insurance proceeds                                           |   |   | - |   |   |   | 233 |   |   |   | 990 |   |
| Purchase of marketable securities                            |   |   | - |   |   |   | - |   |   |   | (202 | ) |
| Proceeds from sale of marketable securities                  |   |   | - |   |   |   | - |   |   |   | 941 |   |
| Net cash used in investing activities                        |   |   | (168,905 | ) |   |   | (164,193 | ) |   |   | (104,722 | ) |
| Cash flows from financing activities:                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowing on Senior Credit Facility                          |   |   | 70,000 |   |   |   | 142,000 |   |   |   | 30,000 |   |
| Repayment of debt and capital lease obligations              |   |   | (64,540 | ) |   |   | (429,626 | ) |   |   | (35,974 | ) |
| Net distribution to General Communication, Inc.              |   |   | (17,666 | ) |   |   | (55,102 | ) |   |   | (80,834 | ) |
| Investment by non-controlling interests                      |   |   | 16,461 |   |   |   | 16,546 |   |   |   | - |   |
| Borrowing of other long-term debt                            |   |   | 4,729 |   |   |   | 35,201 |   |   |   | 6,206 |   |
| Issuance of Senior Notes                                     |   |   | - |   |   |   | 325,000 |   |   |   | - |   |
| Payment of Senior Notes call premiums                        |   |   | - |   |   |   | (4,728 | ) |   |   | - |   |
| Payment of debt issuance costs                               |   |   | - |   |   |   | (3,603 | ) |   |   | (2,300 | ) |
| Net cash provided by (used in) financing activities          |   |   | 8,984 |   |   |   | 25,688 |   |   |   | (82,902 | ) |
| Net decrease in cash and cash equivalents                    |   |   | (7,145 | ) |   |   | (4,047 | ) |   |   | (16,365 | ) |
| Cash and cash equivalents at beginning of period             |   |   | 27,730 |   |   |   | 31,777 |   |   |   | 48,142 |   |
| Cash and cash equivalents at end of period                   |   | $ | 20,585 |   |   |   | 27,730 |   |   |   | 31,777 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements. |   |   |   |   |   |   |   |   |   |   |   |   |

----

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

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

| ·   | Video services throughout Alaska, |
|--------------------|-----------------------------------|

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

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

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

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

| ·   | 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 Issued Accounting Pronouncements |
|--------|-----|-------------------------------------------|

----

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

|   | (f) | Regulatory Accounting |
|--------|-----|-----------------------|

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

|   | (h) | Cash Equivalents |
|--------|-----|------------------|

----

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

|   | (j) | Inventories |
|--------|-----|-------------|

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

|   | (k) | Property and Equipment |
|--------|-----|------------------------|

|        Property and equipment is stated at cost. Construction costs of facilities are capitalized. Equipment financed under capital leases is recorded at the lower of fair market value or the present value of future minimum lease       payments at inception of the lease. Construction in progress represents transmission equipment and support equipment and systems not placed in service on December 31, 2012, that management intends to place in       service during 2013 and 2014. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

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

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

----

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

|   | (o) | Other Assets |
|--------|-----|--------------|

|   | (p) | Asset Retirement Obligations |
|--------|-----|------------------------------|

| Balance at December 31, 2010 |   | $      | 14,035 |   |
|------------------------------|--------|--------|--------|--------|
| Liability incurred           |   |   | 613    |   |
| Accretion expense            |   |   | 619    |   |
| Liability settled            |   |   | (44    | )      |
| Balance at December 31, 2011 |   |   | 15,223 |   |
| Liability incurred           |   |   | 660    |   |
| Accretion expense            |   |   | 508    |   |
| Liability settled            |   |   | (111   | )      |
| Balance at December 31, 2012 |   | $      | 16,280 |   |

|   | (q) | Revenue Recognition |
|--------|-----|---------------------|

----

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

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

| ·   | Video service package fees, local access and Internet service plan fees, and data network revenues are billed in advance, recorded as Deferred Revenue on the balance sheet, and are recognized as the associated service is provided, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

----

----

|   | (r) | Advertising Expense |
|--------|-----|---------------------|

|   | (s) | Leases |
|--------|-----|--------|

|   | (t) | Interest Expense |
|--------|-----|------------------|

----

|   | (u) | Income Taxes |
|--------|-----|--------------|

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

|   | (w) | Stock Awards Issued for Non-employee Services |
|--------|-----|-----------------------------------------------|

|   | (x) | Use of Estimates |
|--------|-----|------------------|

----

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

|   | (z) | Software Capitalization Policy |
|--------|-----|--------------------------------|

|   | (aa) | Guarantees |
|--------|------|------------|

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

----

|                      |   | Years Ended December 31, |   |   |
|---------------------------|--------|--------------------------|--------|--------|
|                      |   | 2012                     |   | 2011   |   | 2010 |
| Surcharges reported gross | $      | 5,401                    |   | 5,408  |   | 5,201 |

----

|   | (ac) | Immaterial Error Correction |
|--------|------|-----------------------------|

| Consolidated Balance Sheet as of  December 31, 2011:                                  |   | As Previously Reported |      |   | Adjustment |   |   | As Revised |   |
|-------------------------------------------------------------------------------------------------|--------|------------------------|-----------|--------|------------|--------|--------|------------|--------|
| Property and equipment in service, net of  depreciation                               |   | $                      | 851,705   |   |       |   | (2,584 | )          |   |   | 849,121 |   |
| Net property and equipment                                                                      |   |                   | 894,623   |   |       |   | (2,584 | )          |   |   | 892,039 |   |
| Total assets                                                                                    |   |                   | 1,447,247 |   |       |   | (2,584 | )          |   |   | 1,444,663 |   |
| Deferred income taxes                                                                           |   |                   | 115,296   |   |       |   | (1,062 | )          |   |   | 114,234 |   |
| Total liabilities                                                                               |   |                   | 1,273,735 |   |       |   | (1,062 | )          |   |   | 1,272,673 |   |
| Retained deficit                                                                                |   |                   | (111,259  | )      |       |   | (1,522 | )          |   |   | (112,781 | ) |
| Total GCI, Inc stockholder's equity                                                             |   |                   | 157,204   |   |       |   | (1,522 | )          |   |   | 155,682 |   |
| Total stockholder's equity                                                                      |   |                   | 173,512   |   |       |   | (1,522 | )          |   |   | 171,990 |   |
| Total liabilities and stockholder's equity                                                      |   |                   | 1,447,247 |   |       |   | (2,584 | )          |   |   | 1,444,663 |   |
|                                                                                            |   |                   |      |   |       |   |   |       |   |   |   |   |
| Consolidated Income Statement for the  Year Ended December 31, 2011:                  |   |                   |      |   |       |   |   |       |   |   |   |   |
| Depreciation and amortization expense                                                           |   |                   | 125,742   |   |       |   | 195    |       |   |   | 125,937 |   |
| Operating income                                                                                |   |                   | 90,719    |   |       |   | (195   | )          |   |   | 90,524 |   |
| Income before income tax expense                                                                |   |                   | 13,086    |   |       |   | (195   | )          |   |   | 12,891 |   |
| Income tax expense                                                                              |   |                   | 7,485     |   |       |   | (80    | )          |   |   | 7,405 |   |
| Net income                                                                                      |   |                   | 5,601     |   |       |   | (115   | )          |   |   | 5,486 |   |
| Net income attributable to GCI, Inc                                                             |   |                   | 5,839     |   |       |   | (115   | )          |   |   | 5,724 |   |
|                                                                                            |   |                   |      |   |       |   |   |       |   |   |   |   |
| Consolidated Statement of Stockholder's  Equity for the Year Ended December 31, 2011: |   |                   |      |   |       |   |   |       |   |   |   |   |
| Retained deficit, balance at January 1, 2011                                                    |   |                   | (61,983   | )      |       |   | (1,407 | )          |   |   | (63,390 | ) |
| Net income                                                                                      |   |                   | 5,601     |   |       |   | (115   | )          |   |   | 5,486 |   |
| Retained deficit, balance at December 31, 2011                                                  |   |                   | (111,259  | )      |       |   | (1,522 | )          |   |   | (112,781 | ) |
| Total stockholder's equity, balance at  January 1, 2011                               |   |                   | 199,213   |   |       |   | (1,407 | )          |   |   | 197,806 |   |
| Total stockholder's equity, balance at  December 31, 2011                             |   |                   | 173,512   |   |       |   | (1,522 | )          |   |   | 171,990 |   |

----

|                                                                                            |   |                   |    |   |       |   |   |       |   |   |    |   |
|-------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|------------|--------|--------|------------|--------|--------|---------|--------|
|                                                                                            |   |                   |    |   |       |   |   |       |   |   |    |   |
| Consolidated Statement of Cashflows for the  Year Ended December 31, 2011:            |   | As Previously Reported |    |   | Adjustment |   |   | As Revised |   |
| Net income                                                                                      |   |                   | 5,601   |   |       |   | (115   | )          |   |   | 5,486   |   |
| Depreciation and amortization expense                                                           |   |                   | 125,742 |   |       |   | 195    |       |   |   | 125,937 |   |
| Income tax expense                                                                              |   |                   | 7,485   |   |       |   | (80    | )          |   |   | 7,405   |   |
|                                                                                            |   |                   |    |   |       |   |   |       |   |   |    |   |
| Consolidated Income Statement for the  Year Ended December 31, 2010:                  |   |                   |    |   |       |   |   |       |   |   |    |   |
| Depreciation and amortization expense                                                           |   |                   | 126,114 |   |       |   | 585    |       |   |   | 126,699 |   |
| Operating income                                                                                |   |                   | 88,511  |   |       |   | (585   | )          |   |   | 87,926  |   |
| Income before income tax expense                                                                |   |                   | 18,443  |   |       |   | (585   | )          |   |   | 17,858  |   |
| Income tax expense                                                                              |   |                   | 9,488   |   |       |   | (240   | )          |   |   | 9,248   |   |
| Net income                                                                                      |   |                   | 8,955   |   |       |   | (345   | )          |   |   | 8,610   |   |
| Net income attributable to GCI, Inc                                                             |   |                   | 8,955   |   |       |   | (345   | )          |   |   | 8,610   |   |
|                                                                                            |   |                   |    |   |       |   |   |       |   |   |    |   |
| Consolidated Statement of Stockholder's  Equity for the Year Ended December 31, 2010: |   |                   |    |   |       |   |   |       |   |   |    |   |
| Retained earnings, balance at January 1, 2010                                                   |   |                   | 9,896   |   |       |   | (1,062 | )          |   |   | 8,834   |   |
| Net income                                                                                      |   |                   | 8,955   |   |       |   | (345   | )          |   |   | 8,610   |   |
| Retained deficit, balance at December 31, 2010                                                  |   |                   | (61,983 | )      |       |   | (1,407 | )          |   |   | (63,390 | )      |
| Total stockholder's equity, balance at  January 1, 2010                               |   |                   | 265,683 |   |       |   | (1,062 | )          |   |   | 264,621 |   |
| Total stockholder's equity, balance at  December 31, 2010                             |   |                   | 199,213 |   |       |   | (1,407 | )          |   |   | 197,806 |   |
|                                                                                            |   |                   |    |   |       |   |   |       |   |   |    |   |
| Consolidated Statement of Cash Flows for the                                                    |   |                   |    |   |       |   |   |       |   |   |    |   |
|   Year Ended December 31, 2010:                                                       |   |                   |    |   |       |   |   |       |   |   |    |   |
| Net income                                                                                      |   |                   | 8,955   |   |       |   | (345   | )          |   |   | 8,610   |   |
| Depreciation and amortization expense                                                           |   |                   | 126,114 |   |       |   | 585    |       |   |   | 126,699 |   |
| Income tax expense                                                                              |   |                   | 9,488   |   |       |   | (240   | )          |   |   | 9,248   |   |

| Year ended December 31,                                                           |   | 2012   |    |   | 2011   |   |    | 2010   |   |
|-----------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| (Increase) decrease in accounts receivable, net                                   |   | $      | (9,386  | )      |   |   | (16,900 | )      |   |   | 12,283 |   |
| Increase in prepaid expenses                                                      |   |   | (350    | )      |   |   | (1,949  | )      |   |   | (1,459 | ) |
| (Increase) decrease in inventories                                                |   |   | (4,576  | )      |   |   | (1,718  | )      |   |   | 3,461 |   |
| Decrease in other current assets                                                  |   |   | 1,953   |   |   |   | 309     |   |   |   | 1,037 |   |
| Decrease in other assets                                                          |   |   | 1,236   |   |   |   | 907     |   |   |   | 2,663 |   |
| Increase (decrease) in accounts payable                                           |   |   | 3,085   |   |   |   | (1,373  | )      |   |   | 1,683 |   |
| Increase (decrease) in deferred revenues                                          |   |   | 3,215   |   |   |   | 4,707   |   |   |   | (4,108 | ) |
| Increase (decrease) in accrued payroll and  payroll related obligations |   |   | (2,750  | )      |   |   | (102    | )      |   |   | 271 |   |
| Increase (decrease) in accrued liabilities                                        |   |   | 3,043   |   |   |   | (1,733  | )      |   |   | 2,585 |   |
| Increase (decrease) in accrued interest                                           |   |   | 106     |   |   |   | (6,776  | )      |   |   | (1,365 | ) |
| Increase (decrease) in subscriber deposits                                        |   |   | 116     |   |   |   | (21     | )      |   |   | (278 | ) |
| Decrease in long-term deferred revenue                                            |   |   | (5,001  | )      |   |   | (2,413  | )      |   |   | (3,167 | ) |
| Decrease in components of other  long-term liabilities                  |   |   | (1,301  | )      |   |   | (1,618  | )      |   |   | (362 | ) |
|   Total change in operating assets and liabilities                      |   | $      | (10,610 | )      |   |   | (28,680 | )      |   |   | 13,244 |   |

----

| Net cash paid or received:                |   | 2012 |   |   | 2011   |   |   | 2010   |   |
|-------------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|
| Interest paid, net of amounts capitalized |   | $    | 69,083 |   |   |   | 73,492 |   |   |   | 71,140 |   |
| Income tax refund received                |   | $    | -      |   |   |   | -      |   |   |   | 1,163 |   |

|                                                                                                            |   | 2012 |   |   | 2011   |   |   | 2010   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|
| Non-cash additions for purchases of property and  equipment                                           |   | $    | 9,010  |   |   |   | 7,233  |   |   |   | 7,622 |   |
| Asset retirement obligation additions to property and  equipment                                      |   | $    | 660    |   |   |   | 613    |   |   |   | 1,253 |   |
| Deferred compensation distribution denominated in  shares                                             |   | $    | 511    |   |   |   | -      |   |   |   | - |   |
| Asset retirement obligation reductions to property and  equipment for revisions to previous estimates |   | $    | -      |   |   |   | 294    |   |   |   | - |   |
| Assets acquired in acquisition                                                                                  |   | $    | -      |   |   |   | -      |   |   |   | 480 |   |

|              |   | 2012   |    |   | 2011   |   |
|-------------------|--------|--------|---------|--------|--------|--------|
| Trade             |   | $      | 148,902 |   |   |   | 140,533 |   |
| Employee          |   |   | 703     |   |   |   | 720 |   |
| Other             |   |   | 831     |   |   |   | 574 |   |
| Total Receivables |   | $      | 150,436 |   |   |   | 141,827 |   |

----

|              |   |                         |   |   | Additions                     |   |   | Deductions                |   |   |                         |   |
|-------------------|--------|------------------------------|--------|--------|-------------------------------|--------|--------|---------------------------|--------|--------|------------------------------|--------|
| Description       |   | Balance at beginning of year |   |   | Charged to costs and expenses |   |   | Charged to other accounts |   |   | Write-offs net of recoveries |   |   | Balance at end of year |   |
| December 31, 2012 |   | $                            | 5,796  |   |                          |   | 3,649  |                      |   |   | (2,261                       | )      |   |   | 3,969 |   |   |   | 3,215 |   |
| December 31, 2011 |   | $                            | 9,189  |   |                          |   | 4,294  |                      |   |   | (29                          | )      |   |   | 7,658 |   |   |   | 5,796 |   |
| December 31, 2010 |   | $                            | 7,060  |   |                          |   | 3,085  |                      |   |   | 1,670                        |   |   |   | 2,626 |   |   |   | 9,189 |   |

|                                                         |   | 2012   |      |   | 2011   |   |
|--------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Land and buildings                                           |   | $      | 56,507    |   |   |   | 47,133 |   |
| Telephony transmission equipment and distribution facilities |   |   | 798,932   |   |   |   | 752,083 |   |
| Cable transmission equipment and distribution facilities     |   |   | 155,122   |   |   |   | 141,400 |   |
| Support equipment and systems                                |   |   | 216,495   |   |   |   | 202,785 |   |
| Transportation equipment                                     |   |   | 9,184     |   |   |   | 8,269 |   |
| Property and equipment under capital leases                  |   |   | 104,251   |   |   |   | 102,972 |   |
| Customer premise equipment                                   |   |   | 142,176   |   |   |   | 134,207 |   |
| Fiber optic cable systems                                    |   |   | 291,220   |   |   |   | 283,997 |   |
|                                                         |   |   | 1,773,887 |   |   |   | 1,672,846 |   |
| Less accumulated depreciation                                |   |   | 901,398   |   |   |   | 798,794 |   |
| Less accumulated amortization                                |   |   | 34,242    |   |   |   | 24,931 |   |
| Net property and equipment in service                        |   | $      | 838,247   |   |   |   | 849,121 |   |

----

|                          |   | 2012   |   |   | 2011   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|
| Software license fees         |   | $      | 35,416 |   |   |   | 30,392 |   |
| Customer relationships        |   |   | 3,036  |   |   |   | 4,435 |   |
| Right-of-way                  |   |   | 783    |   |   |   | 783 |   |
|                          |   |   | 39,235 |   |   |   | 35,610 |   |
| Less accumulated amortization |   |   | 22,675 |   |   |   | 19,775 |   |
| Net other intangible assets   |   | $      | 16,560 |   |   |   | 15,835 |   |

| Balance at December 31, 2010 |   | $      | 17,717 |   |
|------------------------------|--------|--------|--------|--------|
| Asset additions              |   |   | 4,157  |   |
| Less amortization expense    |   |   | 6,039  |   |
| Balance at December 31, 2011 |   |   | 15,835 |   |
| Asset additions              |   |   | 5,952  |   |
| Less amortization expense    |   |   | 5,227  |   |
| Balance at December 31, 2012 |   | $      | 16,560 |   |

|                 |   | Years Ended December 31, |   |
|----------------------|--------|--------------------------|--------|
|                 |   | 2012                     |   |   | 2011 |   |   | 2010 |   |
| Amortization expense |   | $                        | 5,227  |   |   |   | 6,039 |   |   |   | 6,360 |   |

| Years Ending December 31, |   |   |   |
|---------------------------|--------|--------|--------|
| 2013                 |   | $      | 5,098  |   |
| 2014                 |   |   | 4,242  |   |
| 2015                 |   |   | 3,090  |   |
| 2016                 |   |   | 1,473  |   |
| 2017                 |   |   | 582    |   |

----

|                                             |   | 2012   |    |   | 2011   |   |
|--------------------------------------------------|--------|--------|---------|--------|--------|--------|
| 2021 Notes (a)                                   |   | $      | 325,000 |   |   |   | 325,000 |   |
| 2019 Notes (b)                                   |   |   | 425,000 |   |   |   | 425,000 |   |
| Senior Credit Facility (c)                       |   |   | 90,000  |   |   |   | 60,000 |   |
| Rural Utility Service ("RUS") debt (d)           |   |   | 38,997  |   |   |   | 52,944 |   |
| CoBank Mortgage ("CoBank") note payable (d)      |   |   | 797     |   |   |   | 1,344 |   |
|   Debt                                 |   |   | 879,794 |   |   |   | 864,288 |   |
| Less unamortized discount paid on the 2019 Notes |   |   | 2,743   |   |   |   | 3,016 |   |
| Less current portion of long-term debt           |   |   | 1,928   |   |   |   | 3,241 |   |
| Long-term debt, net                              |   | $      | 875,123 |   |   |   | 858,031 |   |

| (a)       | On May 20, 2011 (“Closing Date”), we completed an offering of $325.0 million in aggregate principal amount of 6 3/4% Senior Notes due 2021 (“2021 Notes”) at an issue price of 100% to qualified institutional buyersin reliance on Rule 144A under the Securities Act of 1933, as amended (“Securities Act”), and to persons outside the United States in accordance with Regulation S under the Securities Act.  We used the net proceeds from this offering to repay and retire all $320.0 million of our outstanding senior unsecured notes due 2014 (“2014 Notes”). |
|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| If redeemed during the twelve month period commencing June 1 of the year indicated: |   | Redemption Price |    |
|-------------------------------------------------------------------------------------|--------|------------------|---------|
| 2016                                                                           |   |             | 103.375 | % |
| 2017                                                                           |   |             | 102.250 | % |
| 2018                                                                           |   |             | 101.125 | % |
| 2019 and thereafter                                                                 |   |             | 100.000 | % |

----

|   | (b) | We pay interest of 8.63% on notes that are due in 2019 (“2019 Notes”).  The 2019 Notes are senior unsecured obligations which rank equally in right of payment with the existing and future senior unsecured debt, including our 2021 Notes described previously, and senior in right of payment to all future subordinated indebtedness.  The 2019 Notes are carried on our Consolidated Balance Sheets net of the unamortized portion of the discount, which is being amortized to Interest Expense over the term of the 2019 Notes using the effective interest method and an effective interest rate of 9.09%. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| If redeemed during the twelve month period commencing November 15 of the year indicated: |   | Redemption Price |    |
|------------------------------------------------------------------------------------------|--------|------------------|---------|
| 2014                                                                                |   |             | 104.313 | % |
| 2015                                                                                |   |             | 102.875 | % |
| 2016                                                                                |   |             | 101.438 | % |
| 2017 and thereafter                                                                      |   |             | 100.000 | % |

----

|   | (c) | The Senior Credit Facility includes an $80.0 million term loan, including Supplement No. 3 discussed below, and a $75.0 million revolving credit facility with a $25.0 million sublimit for letters of credit.  Our term loan is fully drawn. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Under the revolving portion of the Senior Credit Facility, we have borrowed $10.0 million and have $349,000 of letters of credit outstanding, which leaves $64.7 million available for borrowing as of December 31, 2012.  The Senior Credit Facility will mature on January 29, 2015. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

|   | (d) | UUI and Unicom, Inc. (“Unicom”), our wholly owned subsidiaries, have entered into various loans with the RUS and CoBank.  The long-term debt is due in monthly installments of principal based on a fixed rate amortization schedule.  The interest rates on the various loans to which this debt relates range from 2.4% to 4.5%.  Through UUI and Unicom, we have $6.2 million available for borrowing for specific capital expenditures under existing borrowing arrangements.  Substantially all of the assets of UUI and Unicom are collateral for the amounts due to RUS and CoBank. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Years ending December 31,                    |   |   |    |
|----------------------------------------------|--------|--------|---------|
| 2013                                    |   | $      | 1,928   |   |
| 2014                                    |   |   | 1,525   |   |
| 2015                                    |   |   | 91,387  |   |
| 2016                                    |   |   | 1,430   |   |
| 2017                                    |   |   | 1,475   |   |
| 2018 and thereafter                          |   |   | 782,049 |   |
|                                         |   |   | 879,794 |   |
| Less unamortized discount paid on 2019 Notes |   |   | 2,743   |   |
| Less current portion of long-term debt       |   |   | 1,928   |   |
|                                         |   | $      | 875,123 |   |

|                  |   | Years Ended December 31, |   |
|-----------------------|--------|--------------------------|--------|
|                  |   | 2012                     |   |   | 2011 |   |   | 2010 |   |
| Deferred tax expense: |   |                     |   |   |   |   |   |   |   |
| Federal taxes         |   | $                        | 10,318 |   |   |   | 6,264 |   |   |   | 7,846 |   |
| State taxes           |   |                     | 1,770  |   |   |   | 1,141 |   |   |   | 1,402 |   |
|                  |   | $                        | 12,088 |   |   |   | 7,405 |   |   |   | 9,248 |   |

|                                                                  |   | Years Ended December 31, |   |
|-----------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                  |   | 2012                     |   |   | 2011 |   |   | 2010 |   |
| “Expected” statutory tax expense                          |   | $                        | 7,437  |   |   |   | 4,500 |   |   |   | 6,215 |   |
| State income taxes, net of federal  expense                 |   |                     | 1,770  |   |   |   | 1,141 |   |   |   | 1,129 |   |
| Income tax effect of nondeductible  entertainment expenses  |   |                     | 777    |   |   |   | 737 |   |   |   | 775 |   |
| Income tax effect of nondeductible   lobbying expenses |   |                     | 298    |   |   |   | 327 |   |   |   | 405 |   |
| Income tax effect of nondeductible officer  compensation    |   |                     | 1,718  |   |   |   | 758 |   |   |   | 722 |   |
| Other, net                                                            |   |                     | 88     |   |   |   | (58 | ) |   |   | 2 |   |
|                                                                  |   | $                        | 12,088 |   |   |   | 7,405 |   |   |   | 9,248 |   |

----

|                                                                                                                                  |   | 2012   |    |   | 2011   |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Current deferred tax assets, net of current deferred tax liability:                                                                   |   |   |    |   |   |   |
| Net operating loss carryforwards                                                                                                      |   | $      | 3,952   |   |   |   | 7,796 |   |
| Compensated absences, accrued for financial reporting  purposes                                                             |   |   | 2,605   |   |   |   | 2,664 |   |
| Workers compensation and self-insurance health reserves,  principally due to accrual for financial reporting purposes       |   |   | 1,357   |   |   |   | 1,068 |   |
| Accounts receivable, principally due to allowance for doubtful  receivables                                                 |   |   | 1,319   |   |   |   | 2,379 |   |
| Deferred compensation expense for tax purposes in  excess of amounts recognized for financial reporting  purposes |   |   | 32      |   |   |   | 131 |   |
| Deferred revenue for financial reporting purposes                                                                                     |   |   | 2,734   |   |   |   | 1,362 |   |
| Other                                                                                                                                 |   |   | 898     |   |   |   | 155 |   |
| Total current deferred tax assets                                                                                                     |   | $      | 12,897  |   |   |   | 15,555 |   |
|                                                                                                                                  |   |   |    |   |   |   |   |   |
| Long-term deferred tax assets:                                                                                                        |   |   |    |   |   |   |   |   |
| Net operating loss carryforwards                                                                                                      |   | $      | 116,034 |   |   |   | 119,762 |   |
| Deferred revenue for financial reporting purposes                                                                                     |   |   | 36,316  |   |   |   | 18,097 |   |
| Alternative minimum tax credits                                                                                                       |   |   | 1,895   |   |   |   | 1,895 |   |
| Deferred compensation expense for tax purposes in  excess of amounts recognized for financial reporting  purposes |   |   | 2,543   |   |   |   | 2,581 |   |
| Asset retirement obligations in excess of amounts recognized  for tax purposes                                              |   |   | 6,680   |   |   |   | 6,248 |   |
| Share-based compensation expense for financial reporting  purposes in excess of amounts recognized for tax purposes         |   |   | 1,675   |   |   |   | 4,394 |   |
| Other                                                                                                                                 |   |   | 3,353   |   |   |   | 469 |   |
| Total long-term deferred tax assets                                                                                                   |   |   | 168,496 |   |   |   | 153,446 |   |
|                                                                                                                                  |   |   |    |   |   |   |   |   |
| Long-term deferred tax liabilities:                                                                                                   |   |   |    |   |   |   |   |   |
| Plant and equipment, principally due to differences in depreciation                                                                   |   |   | 233,530 |   |   |   | 211,172 |   |
| Intangible assets                                                                                                                     |   |   | 58,627  |   |   |   | 56,508 |   |
| Total long-term deferred tax liabilities                                                                                              |   |   | 292,157 |   |   |   | 267,680 |   |
| Net long-term deferred tax liabilities                                                                                                |   | $      | 123,661 |   |   |   | 114,234 |   |

----

| Years ending December 31,                  |   | Federal |    |   | State  |   |
|--------------------------------------------|--------|---------|---------|--------|--------|--------|
| 2020                                  |   | $       | 43,863  |   |   |   | 42,768 |   |
| 2021                                  |   |    | 29,614  |   |   |   | 28,987 |   |
| 2022                                  |   |    | 14,081  |   |   |   | 13,788 |   |
| 2023                                  |   |    | 3,968   |   |   |   | 3,903 |   |
| 2024                                  |   |    | 722     |   |   |   | - |   |
| 2025                                  |   |    | 737     |   |   |   | - |   |
| 2026                                  |   |    | 150     |   |   |   | - |   |
| 2027                                  |   |    | 1,010   |   |   |   | - |   |
| 2028                                  |   |    | 39,879  |   |   |   | 39,715 |   |
| 2029                                  |   |    | 48,370  |   |   |   | 47,558 |   |
| 2031                                  |   |    | 110,933 |   |   |   | 109,376 |   |
| Total tax net operating loss carryforwards |   | $       | 293,327 |   |   |   | 286,095 |   |

----

|                                                                |   | December 31,    |    |   | December 31, |   |
|---------------------------------------------------------------------|--------|-----------------|---------|--------|--------------|--------|
|                                                                |   | 2012            |    |   | 2011         |   |
|                                                                |   | Carrying Amount |    |   | Fair Value   |   |   | Carrying Amount |   |   | Fair Value |   |
| Current and long-term debt and  capital lease obligations |   | $               | 957,663 |   |         |   | 979,594 |   |   |   | 947,326 |   |   |   | 942,895 |   |
| Other liabilities                                                   |   |            | 25,511  |   |         |   | 24,766 |   |   |   | 24,456 |   |   |   | 23,627 |   |

|   | Current and long-term debt and capital lease obligations:  The fair values of our 2021 Notes, 2019 Notes, RUS debt, CoBank mortgage note payable, and capital leases are based upon quoted market prices for the same or similar issues or on the current rates offered to us for the same remaining maturities.  The fair value of our 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                 |   |
|-------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
| December 31, 2012 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) |   | $                                                              | 1,758  |   |   |   | - |   |   |   | - |   |
| Total assets at fair value                                  |   | $                                                              | 1,758  |   |   |   | - |   |   |   | - |   |
|                                                        |   |                                                           |   |   |   |   |   |   |   |   |   |   |
| December 31, 2011 Assets                                    |   |                                                           |   |   |   |   |   |   |   |   |   |   |
| Deferred compensation plan assets  (mutual funds) |   | $                                                              | 1,600  |   |   |   | - |   |   |   | - |   |
| Total assets at fair value                                  |   | $                                                              | 1,600  |   |   |   | - |   |   |   | - |   |

----

----

|                    |   | 2010   |         |
|-------------------------|--------|--------|--------------|
| Expected term (years)   |   |   | 5.0 - 6.5    |   |
| Volatility              |   |   | 52.6% - 55.8 | % |
| Risk-free interest rate |   |   | 2% - 2.9     | % |

|                             |   | Shares (in thousands) |   |   | Weighted Average Exercise Price |   | Weighted Average Remaining Contractual Term |   | Aggregate Intrinsic Value (in thousands) |   |
|----------------------------------|--------|-----------------------|--------|--------|---------------------------------|--------|---------------------------------------------|--------|------------------------------------------|--------|
|                             |   |                  |   |   |                            |   |                                        |   |                                     |   |
| Outstanding at January 1, 2012   |   |                  | 1,087  |   |                            | $      | 7.27                                        |   |                                     |   |   |   |
| Exercised                        |   |                  | (320   | )      |                            | $      | 6.62                                        |   |                                     |   |   |   |
| Forfeited                        |   |                  | (14    | )      |                            | $      | 5.86                                        |   |                                     |   |   |   |
| Expired                          |   |                  | (34    | )      |                            | $      | 5.93                                        |   |                                     |   |   |   |
| Outstanding at December 31, 2012 |   |                  | 719    |   |                            | $      | 7.65                                        |   | 3.7 years                                |   | $ | 1,503 |   |
| Exercisable at December 31, 2012 |   |                  | 676    |   |                            | $      | 7.71                                        |   | 3.5 years                                |   | $ | 1,377 |   |

|                           |   |   |   |   | Weighted   |   |
|--------------------------------|--------|--------|--------|--------|------------|--------|
|                           |   |   |   |   | Average    |   |
|                           |   |   |   |   | Grant Date |   |
|                           |   | Shares |   |   | Fair Value |   |
| Nonvested at January 1, 2012   |   |   | 1,561  |   |       | $      | 6.89 |   |
| Granted                        |   |   | 731    |   |       | $      | 9.23 |   |
| Vested                         |   |   | (1,156 | )      |       | $      | 5.73 |   |
| Forfeited                      |   |   | (9     | )      |       | $      | 10.90 |   |
| Nonvested at December 31, 2012 |   |   | 1,127  |   |       | $      | 9.59 |   |

----

|                                                    |   | 2012   |   |   | 2011   |   |   | 2010   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Share-based compensation expense                        |   | $      | 5,072  |   |   |   | 7,243  |   |   |   | 5,385 |   |
| Adjustment to fair value of liability classified awards |   |   | (32    | )      |   |   | (623   | )      |   |   | 1,348 |   |
|   Total share-based compensation expense      |   | $      | 5,040  |   |   |   | 6,620  |   |   |   | 6,733 |   |

----

----

|                                                |         |                     |    | Consumer |    | Network Access | Commercial |    | Managed Broadband | Regulated Operations | Total Reportable Segments |
|-----------------------------------------------------|--------------|--------------------------|---------|----------|---------|----------------|------------|---------|-------------------|----------------------|---------------------------|
| 2012                                                |         |                     |    |     |    |           |       |    |              |                 |                      |   |   |   |
| Revenues:                                           |         |                     |    |     |    |           |       |    |              |                 |                      |   |   |
|                                                | Intersegment | $                        | -       |     | 259     |           | 5,760      |    | -                 |                 | 246                       |   | 6,265 |
|                                                | External     |                     | 352,972 |     | 105,447 |           | 143,575    |    | 86,562            |                 | 21,625                    |   | 710,181 |
|                                                |         | Total revenues           |    | 352,972  |    | 105,706        |       | 149,335 |              | 86,562               |                      | 21,871 |   | 716,446 |
| Cost of Goods Sold:                                 |         |                     |    |     |    |           |       |    |              |                 |                      |   |
|                                                | Intersegment |                     | 146     |     | 114     |           | 2,253      |    | -                 |                 | 265                       |   | 2,778 |
|                                                | External     |                     | 128,324 |     | 24,356  |           | 66,895     |    | 21,298            |                 | 6,628                     |   | 247,501 |
|                                                |         | Total Cost of Goods Sold |    | 128,470  |    | 24,470         |       | 69,148  |              | 21,298               |                      | 6,893 |   | 250,279 |
| Contribution:                                       |         |                     |    |     |    |           |       |    |              |                 |                      |   |
|                                                | Intersegment |                     | (146)   |     | 145     |           | 3,507      |    | -                 |                 | (19)                      |   | 3,487 |
|                                                | External     |                     | 224,648 |     | 81,091  |           | 76,680     |    | 65,264            |                 | 14,997                    |   | 462,680 |
|                                                |         | Total contribution       |    | 224,502  |    | 81,236         |       | 80,187  |              | 65,264               |                      | 14,978 |   | 466,167 |
| Less SG&A                                       |         | 139,191                  |    | 26,841   |    | 42,014         |       | 24,087  |              | 11,115               |                      | 243,248 |
| Plus share-based compensation                       |         | 2,586                    |    | 790      |    | 1,041          |       | 595     |              | 28                   |                      | 5,040 |
| Plus non-cash contribution expense                  |         | 533                      |    | 169      |    | 156            |       | 102     |              | -                    |                      | 960 |
| Plus loss attributable to non-controlling interests |         | -                        |    | -        |    | -              |       | 867     |              | -                    |                      | 867 |
| Plus net income attributable to equity investment   |         | -                        |    | -        |    | -              |       | 2       |              | -                    |                      | 2 |
| Plus accretion                                      |         | 282                      |    | 89       |    | 83             |       | 54      |              | -                    |                      | 508 |
| Adjusted EBITDA                                     | $            | 88,858                   |    | 55,298   |    | 35,946         |       | 42,797  |              | 3,910                |                      | 226,809 |
|                                                |         |                     |    |     |    |           |       |    |              |                 |                      |   |   |   |
| 2011                                                |         |                     |    |     |    |           |       |    |              |                 |                      |   |   |   |
| Revenues:                                           |         |                     |    |     |    |           |       |    |              |                 |                      |   |   |
|                                                | Intersegment | $                        | -       |     | -       |           | 5,710      |    | -                 |                 | 607                       |   | 6,317 |
|                                                | External     |                     | 352,574 |     | 105,456 |           | 136,101    |    | 63,248            |                 | 22,002                    |   | 679,381 |
|                                                |         | Total revenues           |    | 352,574  |    | 105,456        |       | 141,811 |              | 63,248               |                      | 22,609 |   | 685,698 |
| Cost of Goods Sold:                                 |         |                     |    |     |    |           |       |    |              |                 |                      |   |
|                                                | Intersegment |                     | -       |     | 600     |           | 2,283      |    | -                 |                 | 561                       |   | 3,444 |
|                                                | External     |                     | 110,693 |     | 28,744  |           | 65,170     |    | 17,021            |                 | 5,771                     |   | 227,399 |
|                                                |         | Total Cost of Goods Sold |    | 110,693  |    | 29,344         |       | 67,453  |              | 17,021               |                      | 6,332 |   | 230,843 |
| Contribution:                                       |         |                     |    |     |    |           |       |    |              |                 |                      |   |
|                                                | Intersegment |                     | -       |     | (600)   |           | 3,427      |    | -                 |                 | 46                        |   | 2,873 |
|                                                | External     |                     | 241,881 |     | 76,712  |           | 70,931     |    | 46,227            |                 | 16,231                    |   | 451,982 |
|                                                |         | Total contribution       |    | 241,881  |    | 76,112         |       | 74,358  |              | 46,227               |                      | 16,277 |   | 454,855 |
| Less SG&A                                       |         | 134,951                  |    | 27,837   |    | 41,085         |       | 18,246  |              | 13,402               |                      | 235,521 |
| Plus share-based compensation                       |         | 3,457                    |    | 1,214    |    | 1,276          |       | 657     |              | 16                   |                      | 6,620 |
| Plus loss attributable to non-controlling interest  |         | -                        |    | -        |    | -              |       | 238     |              | -                    |                      | 238 |
| Less loss attributable to equity investment         |         | -                        |    | -        |    | -              |       | (297)   |              | -                    |                      | (297) |
| Plus accretion                                      |         | 347                      |    | 120      |    | 100            |       | 52      |              | -                    |                      | 619 |
| Adjusted EBITDA                                     | $            | 110,734                  |    | 50,209   |    | 31,222         |       | 28,631  |              | 2,845                |                      | 223,641 |

----

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

| Years Ended December 31,                                    |   | 2012   |    |   | 2011   |   |    | 2010   |   |
|-------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Reportable segment revenues                                 |   | $      | 716,446 |   |   |   | 685,698 |   |   |   | 656,868 |   |
| Less intersegment revenues eliminated in consolidation |   |   | 6,265   |   |   |   | 6,317   |   |   |   | 5,618 |   |
| Consolidated revenues                                       |   | $      | 710,181 |   |   |   | 679,381 |   |   |   | 651,250 |   |

| Years Ended December 31,                                      |   | 2012   |     |   | 2011   |   |     | 2010   |   |
|---------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
| Reportable segment Adjusted EBITDA                            |   | $      | 226,809  |   |   |   | 223,641  |   |   |   | 221,487 |   |
| Less depreciation and amortization expense               |   |   | (130,452 | )      |   |   | (125,937 | )      |   |   | (126,699 | ) |
| Less share-based compensation expense                    |   |   | (5,040   | )      |   |   | (6,620   | )      |   |   | (6,733 | ) |
| Plus (less) non-cash contribution expense                     |   |   | (960     | )      |   |   | -        |   |   |   | 160 |   |
| Less net loss attributable to non-controlling interests  |   |   | (867     | )      |   |   | (238     | )      |   |   | - |   |
| Plus net loss (income) attributable to equity investment |   |   | (2       | )      |   |   | 297      |   |   |   | - |   |
| Less accretion expense                                        |   |   | (508     | )      |   |   | (619     | )      |   |   | (289 | ) |
| Consolidated operating income                                 |   |   | 88,980   |   |   |   | 90,524   |   |   |   | 87,926 |   |
| Less other expense, net                                       |   |   | (67,730  | )      |   |   | (77,633  | )      |   |   | (70,068 | ) |
| Consolidated income before income tax expense            |   | $      | 21,250   |   |   |   | 12,891   |   |   |   | 17,858 |   |

----

----

| December 31, 2012 |                                                                                                   |
|-------------------|--------------------------------------------------------------------------------------------------------|
| Assets            |                                                                                                   |   |   | Equity |   |   |
| Carrying Value    |                                                                                                   | Classification |   | Carrying Value |   | Classification |
| $                 | 22,348                                                                                                 |   | Restricted cash1 |   | $ | 32,258 |   | Non-controlling interest |
|              | 10,607                                                                                                 |   | Construction in progress |   |   | 697 |   | Retained earnings attributable to GCI, Inc. common stockholders |
| $                 | 32,955                                                                                                 |   |   |   | $ | 32,955 |   |   |
|              |                                                                                                   |   |   |   |   |   |   |   |
| December 31, 2011 |                                                                                                   |
| Assets            |                                                                                                   |   |   | Equity |   |   |
| Carrying Value    |                                                                                                   | Classification |   | Carrying Value |   | Classification |
| $                 | 15,910                                                                                                 |   | Restricted cash |   | $ | 16,308 |   | Non-controlling interest |
|              | 711                                                                                                    |   | Construction in progress |   |   | 313 |   | Retained earnings attributable to GCI, Inc. common stockholders |
| $                 | 16,621                                                                                                 |   |   |   | $ | 16,621 |   |   |
|              |                                                                                                   |   |   |   |   |   |   |   |
|  1           |   An additional $8.6 million in restricted cash is held at Unicom for use only on TERRA-NW.  |

----

| Years ending December 31:                                                         |   | Operating |    |   | Capital |   |
|-----------------------------------------------------------------------------------|--------|-----------|---------|--------|---------|--------|
| 2013                                                                         |   | $         | 27,764  |   |    |   | 11,775 |   |
| 2014                                                                         |   |      | 23,809  |   |    |   | 11,784 |   |
| 2015                                                                         |   |      | 22,527  |   |    |   | 11,794 |   |
| 2016                                                                         |   |      | 19,600  |   |    |   | 11,804 |   |
| 2017                                                                         |   |      | 15,411  |   |    |   | 11,783 |   |
| 2018 and thereafter                                                               |   |      | 64,944  |   |    |   | 54,948 |   |
| Total minimum lease payments                                                      |   | $         | 174,055 |   |    |   | 113,888 |   |
| Less amount representing interest                                                 |   |      |    |   |    |   | 33,276 |   |
| Less current maturity of obligations under capital leases                         |   |      |    |   |    |   | 5,995 |   |
| Long-term obligations under capital leases, excluding  current maturity |   |      |    |   |    | $      | 74,617 |   |

----

| Years ending December 31,             |   |   |   |
|---------------------------------------|--------|--------|--------|
| 2013                             |   | $      | 11,322 |   |
| 2014                             |   |   | 6,325  |   |
| 2015                             |   |   | 5,094  |   |
| 2016                             |   |   | 4,969  |   |
| 2017                             |   |   | 4,949  |   |
| 2018 and thereafter                   |   |   | 27,064 |   |
| Total minimum future service revenues |   | $      | 59,723 |   |

----

----

|                                                                                                                               |   | First   |    |   | Second  |   |    | Third   |   |   | Fourth  |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|---------|--------|
|                                                                                                                               |   | Quarter |    |   | Quarter |   |    | Quarter |   |   | Quarter |   |
| 2012                                                                                                                               |   |    |    |   |    |   |    |    |   |   |    |   |
| Total revenues                                                                                                                     |   | $       | 171,907 |   |    |   | 176,104 |    |   |   | 178,494 |   |   |   | 183,676 |   |
| Operating income                                                                                                                   |   | $       | 19,685  |   |    |   | 24,633  |    |   |   | 25,392  |   |   |   | 19,270 |   |
| Net income attributable to GCI, Inc.                                                                                               |   | $       | 1,429   |   |    |   | 3,982   |    |   |   | 3,700   |   |   |   | 562 |   |
|                                                                                                                               |   |    |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| 2011                                                                                                                               |   |    |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Total revenues                                                                                                                     |   | $       | 164,777 |   |    |   | 168,089 |    |   |   | 177,703 |   |   |   | 168,812 |   |
| Operating income                                                                                                                   |   | $       | 20,262  |   |    |   | 22,300  |    |   |   | 31,933  |   |   |   | 16,030 |   |
| Net income (loss) attributable to GCI, Inc.1                                                                                       |   | $       | 1,399   |   |    |   | (2,043) |    |   |   | 7,239   |   |   |   | (870) |   |
|                                                                                                                               |   |    |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| 1 Due to the immaterial error correction discussed in Note 1(ac), some amounts are revised from prior period financial statements. |   |

----

| Exhibit No. | Description                                                                                                                                                                                                                                                                                  |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1    | Amendment, dated as of October 1, 2012, to Asset Purchase and Contribution Agreement, dated as of June 4, 2012, among Alaska Communications Systems Group, Inc., General Communication, Inc., ACS Wireless, Inc., GCI Wireless Holdings, LLC and The Alaska Wireless Network, LLC (57)  |
| 3.1    | Restated Articles of Incorporation of General Communication, Inc. dated August 20, 2007 (37)                                                                                                                                                                                                 |
| 3.2    | Amended and Restated Bylaws of General Communication, Inc. dated August 20, 2007 (36)                                                                                                                                                                                                        |
| 4.1    | Certified copy of the General Communication, Inc. Amendment No. 1, dated as of June 25, 2007, to the Amended and Restated 1986 Stock Option Plan (33)                                                                                                                                        |
| 10.3   | Westin Building Lease (3)                                                                                                                                                                                                                                                                    |
| 10.4   | Duncan and Hughes Deferred Bonus Agreements (4)                                                                                                                                                                                                                                              |
| 10.5   | Compensation Agreement between General Communication, Inc. and William C. Behnke dated January 1, 1997 (13)                                                                                                                                                                                  |
| 10.6   | Order approving Application for a Certificate of Public Convenience and Necessity to operate as a Telecommunications (Intrastate Interexchange Carrier) Public Utility within Alaska (2)                                                                                                     |
| 10.13  | MCI Carrier Agreement between MCI Telecommunications Corporation and General Communication, Inc. dated January 1, 1993 (5)                                                                                                                                                                   |
| 10.14  | Contract for Alaska Access Services Agreement between MCI Telecommunications Corporation and General Communication, Inc. dated January 1, 1993 (5)                                                                                                                                           |
| 10.15  | Promissory Note Agreement between General Communication, Inc. and Ronald A. Duncan, dated August 13, 1993 (6)                                                                                                                                                                                |
| 10.16  | Deferred Compensation Agreement between General Communication, Inc. and Ronald A. Duncan, dated August 13, 1993 (6)                                                                                                                                                                          |
| 10.17  | Pledge Agreement between General Communication, Inc. and Ronald A. Duncan, dated August 13, 1993 (6)                                                                                                                                                                                         |
| 10.20  | The GCI Special Non-Qualified Deferred Compensation Plan (7)                                                                                                                                                                                                                                 |
| 10.21  | Transponder Purchase Agreement for Galaxy X between Hughes Communications Galaxy, Inc. and GCI Communication Corp. (7)                                                                                                                                                                       |
| 10.25  | Licenses: (3)                                                                                                                                                                                                                                                                                |
| 10.25.1     | 214 Authorization                                                                                                                                                                                                                                                                            |
| 10.25.2     | International Resale Authorization                                                                                                                                                                                                                                                           |
| 10.25.3     | Digital Electronic Message Service Authorization                                                                                                                                                                                                                                             |
| 10.25.11    | Certificate of Convenience and Public Necessity – Telecommunications Service (Local Exchange) dated July 7, 2000  (29)                                                                                                                                                       |
| 10.26  | ATU Interconnection Agreement between GCI Communication Corp. and Municipality of Anchorage, executed January 15, 1997 (12)                                                                                                                                                                  |
| 10.29  | Asset Purchase Agreement, dated April 15, 1996, among General Communication, Inc., ACNFI, ACNJI and ACNKSI (8)                                                                                                                                                                               |
| 10.30  | Asset Purchase Agreement, dated May 10, 1996, among General Communication, Inc., and Alaska Cablevision, Inc. (8)                                                                                                                                                                            |
| 10.31  | Asset Purchase Agreement, dated May 10, 1996, among General Communication, Inc., and McCaw/Rock Homer Cable System, J.V. (8)                                                                                                                                                                 |
| 10.32  | Asset Purchase Agreement, dated May 10, 1996, between General Communication, Inc., and McCaw/Rock Seward Cable System, J.V. (8)                                                                                                                                                              |
| 10.33  | Amendment No. 1 to Securities Purchase and Sale Agreement, dated October 31, 1996, among General Communication, Inc., and the Prime Sellers Agent (9)                                                                                                                                        |
| 10.34  | First Amendment to Asset Purchase Agreement, dated October 30, 1996, among General Communication, Inc., ACNFI, ACNJI and ACNKSI (9)                                                                                                                                                          |

----

|  Exhibit No. |  Description                                                                                                                                                                                                                                                             |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.36        | Order Approving Arbitrated Interconnection Agreement as Resolved and Modified by Order U-96-89(5) dated January 14, 1997 (12)                                                                                                                                                 |
| 10.37        | Amendment to the MCI Carrier Agreement executed April 20, 1994 (12)                                                                                                                                                                                                           |
| 10.38        | Amendment No. 1 to MCI Carrier Agreement executed July 26, 1994 (11)                                                                                                                                                                                                          |
| 10.39        | MCI Carrier Addendum—MCI 800 DAL Service effective February 1, 1994 (11)                                                                                                                                                                                                |
| 10.40        | Third Amendment to MCI Carrier Agreement dated as of October 1, 1994 (11)                                                                                                                                                                                                     |
| 10.41        | Fourth Amendment to MCI Carrier Agreement dated as of September 25, 1995 (11)                                                                                                                                                                                                 |
| 10.42        | Fifth Amendment to the MCI Carrier Agreement executed April 19, 1996 (12)                                                                                                                                                                                                     |
| 10.43        | Sixth Amendment to MCI Carrier Agreement dated as of March 1, 1996 (11)                                                                                                                                                                                                       |
| 10.44        | Seventh Amendment to MCI Carrier Agreement dated November 27, 1996 (14)                                                                                                                                                                                                       |
| 10.45        | First Amendment to Contract for Alaska Access Services between General Communication, Inc. and MCI Telecommunications Corporation dated April 1, 1996 (14)                                                                                                                    |
| 10.46        | Service Mark License Agreement between MCI Communications Corporation and General Communication, Inc. dated April 13, 1994 (13)                                                                                                                                               |
| 10.47        | Radio Station Authorization (Personal Communications Service License), Issue Date June 23, 1995 (13)                                                                                                                                                                          |
| 10.50        | Contract No. 92MR067A Telecommunications Services between BP Exploration (Alaska), Inc. and GCI Network Systems dated April 1, 1992 (14)                                                                                                                                      |
| 10.51        | Amendment No. 03 to BP Exploration (Alaska) Inc. Contract No. 92MRO67A effective August 1, 1996 (14)                                                                                                                                                                          |
| 10.52        | Lease Agreement dated September 30, 1991 between RDB Company and General Communication, Inc. (2)                                                                                                                                                                              |
| 10.54        | Order Approving Transfer Upon Closing, Subject to Conditions, and Requiring Filings dated September 23, 1996 (13)                                                                                                                                                             |
| 10.55        | Order Granting Extension of Time and Clarifying Order dated October 21, 1996 (13)                                                                                                                                                                                             |
| 10.58        | Employment and Deferred Compensation Agreement between General Communication, Inc. and John M. Lowber dated July 1992 (13)                                                                                                                                                    |
| 10.59        | Deferred Compensation Agreement between GCI Communication Corp. and Dana L. Tindall dated August 15, 1994 (13)                                                                                                                                                                |
| 10.60        | Transponder Lease Agreement between General Communication Incorporated and Hughes Communications Satellite Services, Inc., executed August 8, 1989 (6)                                                                                                                        |
| 10.61        | Addendum to Galaxy X Transponder Purchase Agreement between GCI Communication Corp. and Hughes Communications Galaxy, Inc. dated August 24, 1995 (13)                                                                                                                         |
| 10.62        | Order Approving Application, Subject to Conditions; Requiring Filing; and Approving Proposed Tariff on an Inception Basis, dated February 4, 1997 (13)                                                                                                                        |
| 10.66        | Supply Contract Between Submarine Systems International Ltd. And GCI Communication Corp. dated as of July 11, 1997. (15)                                                                                                                                                      |
| 10.67        | Supply Contract Between Tyco Submarine Systems Ltd. And Alaska United Fiber System Partnership Contract Variation No. 1 dated as of December 1, 1997. (15)                                                                                                                    |
| 10.71        | Third Amendment to Contract for Alaska Access Services between General Communication, Inc. and MCI Telecommunications Corporation dated February 27, 1998 (16) #                                                                                                              |
| 10.80        | Fourth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI WorldCom dated January 1, 1999. (17) #                                                                           |
| 10.89        | Fifth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI WorldCom Network Services, Inc., formerly known as MCI Telecommunications Corporation dated August 7, 2000 # (18) |

----

|  Exhibit No. |  Description                                                                                                                                                                                                                                                                                                              |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.90        | Sixth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI WorldCom Network Services, Inc., formerly known as MCI Telecommunications Corporation dated February 14, 2001 # (18)                                               |
| 10.91        | Seventh Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI WorldCom Network Services, Inc., formerly known as MCI Telecommunications Corporation dated March 8, 2001 # (18)                                                 |
| 10.100       | Contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated March 12, 2002 # (21)                                                                                                                             |
| 10.102       | First Amendment to Lease Agreement dated as of September 2002 between RDB Company and GCI Communication Corp. as successor in interest to General Communication, Inc. (22)                                                                                                                                                     |
| 10.103       | Agreement and plan of merger of GCI American Cablesystems, Inc. a Delaware corporation and GCI Cablesystems of Alaska, Inc. an Alaska corporation each with and into GCI Cable, Inc. an Alaska corporation, adopted as of December 10, 2002  (22)                                                                    |
| 10.104       | Articles of merger between GCI Cablesystems of Alaska, Inc. and GCI Cable, Inc., adopted as of December 10, 2002  (22)                                                                                                                                                                                               |
| 10.105       | Aircraft lease agreement between GCI Communication Corp., and Alaska corporation and 560 Company, Inc., an Alaska corporation, dated as of January 22, 2001 (22)                                                                                                                                                               |
| 10.106       | First amendment to aircraft lease agreement between GCI Communication Corp., and Alaska corporation and 560 Company, Inc., an Alaska corporation, dated as of February 8, 2002  (22)                                                                                                                                 |
| 10.108       | Bonus Agreement between General Communication, Inc. and Wilson Hughes (23)                                                                                                                                                                                                                                                     |
| 10.109       | Eighth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI WorldCom Network Services, Inc. # (23)                                                                                                                            |
| 10.110       | Settlement and Release Agreement between General Communication, Inc. and WorldCom, Inc. (23)                                                                                                                                                                                                                                   |
| 10.112       | Waiver letter agreement dated as of February 13, 2004 for Credit, Guaranty, Security and Pledge Agreement  (24)                                                                                                                                                                                                      |
| 10.113       | Indenture dated as of February 17, 2004 between GCI, Inc. and The Bank of New York, as trustee  (24)                                                                                                                                                                                                                 |
| 10.114       | Registration Rights Agreement dated as of February 17, 2004, among GCI, Inc.,  and Deutsche Bank Securities Inc., Jefferies & Company, Inc., Credit Lyonnais Securities (USA), Inc., Blaylock & Partners, L.P., Ferris, Baker Watts, Incorporated, and TD Securities (USA), Inc., as Initial Purchasers (24) |
| 10.121       | First amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated July 24, 2002 # (26)                                                                                                           |
| 10.122       | Second amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated December 31, 2003 (26)                                                                                                        |
| 10.123       | Third amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated February 19, 2004 # (26)                                                                                                       |
| 10.124       | Fourth amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated June 30, 2004 # (26)                                                                                                          |

----

|  Exhibit No. |  Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.128       | Fifth amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated January 22, 2005 #  (27)                                                                                                                                                                                                                                                                               |
| 10.129       | Ninth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI WorldCom Network Services, Inc. #  (28)                                                                                                                                                                                                                                                                                                    |
| 10.130       | Amended and Restated Credit Agreement among GCI Holdings, Inc. and Calyon New York Branch as Administrative Agent, Sole Lead Arranger, and Co-Bookrunner, The Initial Lenders and Initial Issuing Bank Named Herein as Initial Lenders and Initial Issuing Bank, General Electric Capital Corporation as Syndication Agent, and Union Bank of California, N.A., CoBank, ACB, CIT Lending Services Corporation and Wells Fargo Bank, N.A. as Co-Documentation Agents, dated as of August 31, 2005  (28) |
| 10.131       | Amended and Restated 1986 Stock Option Plan of General Communication, Inc. as of June 7, 2005  (28)                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.132       | Amendment No. 1 to $150 Million EBITDA Incentive Program dated December 30, 2005 (29)                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.134       | Full-time Transponder Capacity Agreement with PanAmSat Corporation dated March 31, 2006 #  (30)                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.135       | Tenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formerly known as MCI WorldCom Network Services) #  (31)                                                                                                                                                     |
| 10.136       | Reorganization Agreement among General Communication, Inc., Alaska DigiTel, LLC, The Members of Alaska DigiTel, LLC, AKD Holdings, LLC and The Members of Denali PCS, LLC dated as of June 16, 2006 (Nonmaterial schedules and exhibits to the Reorganization Agreement have been omitted pursuant to Item 601b.2 of Regulation S-K. We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) #  (32)                                             |
| 10.137       | Second Amended and Restated Operating Agreement of Alaska DigiTel, LLC dated as of January 1, 2007 (We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) #  (32)                                                                                                                                                                                                                                                                              |
| 10.138       | Sixth amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated September 20, 2006 (33)                                                                                                                                                                                                                                                                                          |
| 10.139       | Seventh amendment to contract for Alaska Access Services between Sprint Communications Company L.P. and General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp. dated January 17, 2007 # (33)                                                                                                                                                                                                                                                                                        |
| 10.140       | General Communication, Inc. Director Compensation Plan dated June 29, 2006 (33)                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.141       | Eleventh Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formerly known as MCI WorldCom Network Services) # (35)                                                                                                                                                             |
| 10.142       | Third Amendment to the Amended and Restated Credit Agreement among GCI Holdings, Inc., GCI Communication Corp., GCI Cable, Inc., GCI Fiber Communication Co., Potter View Development Co., Inc., and Alaska United Fiber System Partnership, GCI, Inc., the banks, financial institutions, and other lenders party hereto and Calyon New York Branch as Administrative Agent, dated as of September 14, 2007 (36)                                                                                                |

----

|  Exhibit No. |  Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.143       | Joinder Agreement dated as of September 28, 2007 among BNP Paribas, U.S. Bank National Association, GCI Holdings, Inc., GCI Communication Corp., GCI Cable, Inc., GCI Fiber Communication Co., Potter View Development Co., Inc., and Alaska United Fiber System Partnership, GCI, Inc., and Calyon New York Branch as Administrative Agent (36)                                                                                                                                                                                                                                                                           |
| 10.144       | Strategic Roaming Agreement dated as of October 30, 2007 between Alaska DigiTel, LLC. And WirelessCo L.P. # (37)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.145       | CDMA Build-out Agreement dated as of October 30, 2007 between Alaska DigiTel, LLC. and WirelessCo L.P. (Nonmaterial schedules and exhibits to the Reorganization Agreement have been omitted pursuant to Item 601b.2 of Regulation S-K. We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) # (37)                                                                                                                                                                                                                                                               |
| 10.146       | Long-term de Facto Transfer Spectrum Leasing agreement between Alaska DigiTel, LLC. and SprintCom, Inc. # (37)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.147       | Twelfth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formerly known as MCI WorldCom Network Services) dated November 19, 2007 (Nonmaterial schedules and exhibits to the Reorganization Agreement have been omitted pursuant to Item 601b.2 of Regulation S-K. We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) # (37) |
| 10.148       | Stock Purchase Agreement dated as of October 12, 2007 among GCI Communication Corp., United Companies, Inc., Sea Lion Corporation and Togiak Natives LTD. (Nonmaterial schedules and exhibits to the Reorganization Agreement have been omitted pursuant to Item 601b.2 of Regulation S-K. We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) (37)                                                                                                                                                                                                              |
| 10.149       | Fourth Amendment to the Amended and Restated Credit Agreement dated as of May 2, 2008 by and among GCI Holdings, Inc., the other parties thereto and Calyon New York Branch, as administrative agent, and the other Lenders party thereto (38)                                                                                                                                                                                                                                                                                                                                                                             |
| 10.150       | Second Amendment to Lease Agreement dated as of April 8, 2008 between RDB Company and GCI Communication Corp. as successor in interest to General Communication, Inc. (39)                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.153       | Thirteenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formally known as MCI WorldCom Network Services) dated January 16, 2008 # (39)                                                                                                                                                                                                                                              |
| 10.154       | Fourteenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formally known as MCI WorldCom Network Services) dated May 15, 2008 (40)                                                                                                                                                                                                                                                    |
| 10.155       | Contract for Alaska Access Services between the Company and Verizon, dated January 1, 1993 (41) #                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.156       | Third Amendment to Contract for Alaska Access Services between the Company and Verizon, dated February 27, 1998 (41) #                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.157       | Fourth Amendment to Contract for Alaska Access Services between the Company and Verizon, dated January 1, 1999 (41) #                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.158       | Fifth Amendment to the Amended and Restated Credit Agreement dated as of October 17, 2008 by and among Holdings, Inc. the other parties thereto and Calyon New York Branch, as administrative agent, and the other Lenders party thereto (42)                                                                                                                                                                                                                                                                                                                                                                              |

----

|  Exhibit No. |  Description                                                                                                                                                                                                                                                                                                                                                                         |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.159       | Amendment to Deferred Bonus Agreement dated December 31, 2008 by and among the Company, the Employer and Mr. Duncan (43)                                                                                                                                                                                                                                                                  |
| 10.160       | Amendment to Deferred Compensation Agreement dated December 31, 2008 by and among the Company, the Employer and Mr. Duncan (43)                                                                                                                                                                                                                                                           |
| 10.161       | First Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated February 15, 2008 # (44)                                                                                                                                                                              |
| 10.162       | Second Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated April 9, 2008 # (44)                                                                                                                                                                                 |
| 10.163       | Third Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated June 4, 2008 # (44)                                                                                                                                                                                   |
| 10.164       | Fourth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated June 4, 2008 # (44)                                                                                                                                                                                  |
| 10.165       | Fifth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated September 30, 2008 # (44)                                                                                                                                                                             |
| 10.166       | Sixth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated October 31, 2008 # (44)                                                                                                                                                                               |
| 10.167       | Seventh Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated November 6, 2008 # (44)                                                                                                                                                                             |
| 10.168       | Eighth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated June 8, 2009 # (44)                                                                                                                                                                                  |
| 10.169       | Fifteenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formally known as MCI WorldCom Network Services) dated May 5, 2009 # (44)                   |
| 10.170       | Second Amended and Restated Credit Agreement dated as of January 29, 2010 by and among GCI Holdings, Inc., the other parties thereto and Calyon New York Branch, as administrative agent, and the other Lenders party thereto (45)                                                                                                                                                        |
| 10.171       | Sixteenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formally known as MCI WorldCom Network Services) dated October 13, 2009 (46)                |
| 10.172       | Seventeenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formally known as MCI WorldCom Network Services) dated December 8, 2009 #  (46) |
| 10.173       | Audit Committee Charter (as revised by the Board of Directors of General Communication, Inc. effective January 1, 2010) (47)                                                                                                                                                                                                                                                              |
| 10.174       | Nominating and Corporate Governance Committee Charter (as revised by the Board of Directors of General Communication, Inc. effective as of January 1, 2010) (47)                                                                                                                                                                                                                          |

----

|  Exhibit No. |  Description                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.175       | Ninth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication, Corp. dated June 29, 2010 # (47)                                                                                                                                                                                                                                               |
| 10.176       | Stock Purchase Agreement between General Communication, Inc. and Arctic Slope Regional Corporation, an Alaska corporation, dated as of October 21, 2010 (48)                                                                                                                                                                                                                                                                                            |
| 10.177       | Description of Incentive Compensation Guidelines for Named Executive Officers (49)                                                                                                                                                                                                                                                                                                                                                                      |
| 10.178       | Amended and restated aircraft lease agreement between GCI Communication Corp., and Alaska corporation and 560 Company, Inc., an Alaska corporation, dated as of February 25, 2005 (53)                                                                                                                                                                                                                                                                  |
| 10.179       | First amendment to the amended and restated aircraft lease agreement between GCI Communication Corp., and Alaska corporation and 560 Company, Inc., an Alaska corporation, dated as of December 27, 2010 (53)                                                                                                                                                                                                                                           |
| 10.180            | Tenth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication, Corp. dated September 24, 2010 # (53)                                                                                                                                                                                                                                          |
| 10.181       | Eleventh Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication, Corp. dated September 23, 2010 # (53)                                                                                                                                                                                                                                       |
| 10.182       | Twelfth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication, Corp. dated November 5, 2010 # (53)                                                                                                                                                                                                                                          |
| 10.183       | Reorganization Agreement among General Communication, Inc., Alaska DigiTel, LLC, The Members of Alaska DigiTel, LLC, AKD Holdings, LLC and The Members of Denali PCS, LLC dated as of June 16, 2006 (Nonmaterial schedules and exhibits to the Reorganization Agreement have been omitted pursuant to Item 601b.2 of Regulation S-K. We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) (53) |
| 10.184       | Second Amended and Restated Operating Agreement of Alaska DigiTel, LLC dated as of January 1, 2007 (We agree to furnish supplementally to the Commission upon request a copy of any omitted schedule or exhibit.) (53)                                                                                                                                                                                                                                  |
| 10.185       | Amendment No. 2 to the Amended and Restated 1986 Stock Option Plan of General Communication, Inc. (50)                                                                                                                                                                                                                                                                                                                                                  |
| 10.186       | Amendment No. 3 to the Amended and Restated 1986 Stock Option Plan of General Communication, Inc. (53)                                                                                                                                                                                                                                                                                                                                                  |
| 10.187       | Amended Memorandum of Understanding dated effective as of January  26, 2006 setting forth the principal terms and conditions of transactions proposed to be consummated among Alaska DigiTel, LLC, an Alaska limited liability company, all of the members of Denali PCS, LLC, an Alaska limited liability company, and General Communication, Inc., an Alaska corporation (53)                                                               |
| 10.188       | Broadband Initiatives Program Loan/Grant and Security Agreement between United Utilities, Inc. and the United States of America dated as of June 1, 2010 # (53)                                                                                                                                                                                                                                                                                         |
| 10.189       | Add-on Term Loan Supplement No. 1 (51)                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.190            | Second Amended and Restated Aircraft Lease Agreement between GCI Communication Corp., an Alaska corporation and 560 Company, Inc., an Alaska corporation, dated May 9, 2011 (52)                                                                                                                                                                                                                                                                        |
| 10.191       | Add-on Term Loan Supplement No. 2  (54)                                                                                                                                                                                                                                                                                                                                                                                                       |

----

|  Exhibit No. |  Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.192       | Credit Agreement dated August 30, 2011 by and between Unicom, Inc. as borrower and Northern Development Fund VIII, LLC as Lender and Travois New Markets Project CDE X, LLC as Lender and Waveland Sub CDE XVI, LLC as Lender and Alaska Growth Capital Bidco, Inc. as Disbursing Agent (55)                                                                                                                                                                                                                                                                                                        |
| 10.193       | Asset Purchase and Contribution Agreement Dated as of June 4, 2012 By and Among Alaska Communications Systems Group, Inc., ACS Wireless, Inc., GeneralCommunication, Inc., GCI Wireless Holdings, LLC and The Alaska WirelessNetwork, LLC  # (56)                                                                                                                                                                                                                                                                                                                                         |
| 10.194       | Add-on Term Loan Supplement No. 3 (56)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.195       | Credit Agreement dated October 3, 2012 by and between Unicom, Inc. as borrower and USBCDE Sub-CDE 74, LLC as Lender and Cherokee Nation Sub-CDE II, LLC as Lender and LBCDE Sub2, LLC as Lender and Waveland Sub CDE XXII, LLC as Lender (58)                                                                                                                                                                                                                                                                                                                                                       |
| 10.196       | Thirteenth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication, Corp. dated March 14, 2011  #  *                                                                                                                                                                                                                                                                                                                                                                  |   |
| 10.197       | Fourteenth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication, Corp. dated June 7, 2011  #  *                                                                                                                                                                                                                                                                                                                                                                    |   |
| 10.198       | Fifteenth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication, Corp. dated December 29, 2011  #  *                                                                                                                                                                                                                                                                                                                                                                |   |
| 10.199            | Sixteenth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication, Corp. dated December 21, 2012  #  *                                                                                                                                                                                                                                                                                                                                                                |   |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
| 14           | Code Of Business Conduct and Ethics (originally reported as exhibit 10.118) (25)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 18.1         | Letter regarding change in accounting principle (39)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 21.1         | Subsidiaries of the Registrant  *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 31           | Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 32           | Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 *                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 99           | Additional Exhibits:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 99.17        | The Articles of Incorporation of GCI, Inc. (12)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |
| 99.18        | The Bylaws of GCI, Inc. (12)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
| 101          | The following materials from GCI, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2012, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2012 and 2011; (ii) Consolidated Income Statements for the years ended December 31, 2012, 2011 and 2010; (iii) Consolidated Statements of Stockholder's Equity for the years ended December 31, 2012, 2011 and 2010; (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010; and (v) Notes to Consolidated Financial Statements * |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |
| #                 | CONFIDENTIAL PORTION has been omitted pursuant to a request for confidential treatment by us to, and the material has been separately filed with, the SEC.  Each omitted Confidential Portion is marked by three asterisks.                                                                                                                                                                                                                                                                                                                                                               |
| *                 | Filed herewith.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |

----

| Exhibit Reference | Description                                                                                                                                                          |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1            | Incorporated by reference to GCI’s Annual Report on Form 10-K for the year ended December 31, 1990                                                             |
| 2            | Incorporated by reference to GCI’s Annual Report on Form 10-K for the year ended December 31, 1991                                                             |
| 3            | Incorporated by reference to GCI’s Registration Statement on Form 10 (File No. 0-15279), mailed to the Securities and Exchange Commission on December 30, 1986 |
| 4            | Incorporated by reference to GCI’s Annual Report on Form 10-K for the year ended December 31, 1989.                                                            |
| 5            | Incorporated by reference to GCI’s Current Report on Form 8-K dated June 4, 1993.                                                                              |
| 6            | Incorporated by reference to GCI’s Annual Report on Form 10-K for the year ended December 31, 1993.                                                            |
| 7            | Incorporated by reference to GCI’s Annual Report on Form 10-K for the year ended December 31, 1995.                                                            |
| 8            | Incorporated by reference to GCI’s Form S-4 Registration Statement dated October 4, 1996.                                                                      |
| 9            | Incorporated by reference to GCI’s Current Report on Form 8-K dated November 13, 1996.                                                                         |
| 10           | Incorporated by reference to GCI’s Annual Report on Form 10-K for the year ended December 31, 1996.                                                            |
| 11           | Incorporated by reference to GCI’s Current Report on Form 8-K dated March 14, 1996, filed March 28, 1996.                                                      |
| 12           | Incorporated by reference to GCI’s Form S-3 Registration Statement (File No. 333-28001) dated May 29, 1997.                                                    |
| 13           | Incorporated by reference to GCI’s Amendment No. 1 to Form S-3/A Registration Statement (File No. 333-28001) dated July 8, 1997.                               |
| 14           | Incorporated by reference to GCI’s Amendment No. 2 to Form S-3/A Registration Statement (File No. 333-28001) dated July 21, 1997.                              |
| 15           | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 1997.                                                    |
| 16           | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 1998.                                                    |
| 17           | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 1999.                                                   |
| 18           | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2001.                                                  |
| 19           | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2001.                                                   |
| 20           | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2001.                                                    |
| 21           | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2002.                                                   |

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|  Exhibit Reference |  Description                                                                                                                      |
|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------|
| 22                 | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2002.                      |
| 23                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2003.                     |
| 24                 | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2003.                      |
| 25                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2004.                    |
| 26                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2004.                     |
| 27                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2005.                    |
| 28                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2005.                |
| 29                 | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2005 filed March 16, 2006. |
| 30                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2006.                    |
| 31                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2006.                     |
| 32                 | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2006 filed March 19, 2007. |
| 33                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2007.                    |
| 34                 | Incorporated by reference to The Company’s Form S-8 filed with the SEC on July 27, 2007.                                         |
| 35                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2007.                     |
| 36                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2007.                |
| 37                 | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2007 filed March 7, 2008.  |
| 38                 | Incorporated by reference to the Company's Report on Form 8-K for the period May 2, 2008 filed May 8, 2008.                            |
| 39                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2008.                    |
| 40                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2008.                     |
| 41                 | Incorporated by reference to The Company's Report on Form 8-K for the period September 19, 2008 filed on September 22, 2008.           |
| 42                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2008.                |
| 43                 | Incorporated by reference to The Company's Report on Form 8-K for the period December 31, 2008 filed January 6, 2009.                  |

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|  Exhibit Reference |  Description                                                                                                                       |
|-------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|
| 44                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2009.                 |
| 45                 | Incorporated by reference to The Company's Report on Form 8-K for the period January 29, 2010 filed February 3, 2010.                   |
| 46                 | Incorporated by reference to The Company’s Annual Report on Form 10-K for the year ended December 31, 2009 filed March 12, 2010.  |
| 47                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2010 filed August 5, 2010. |
| 48                 | Incorporated by reference to The Company's Report on Form 8-K for the period October 21, 2010 filed October 27, 2010.                   |
| 49                 | Incorporated by reference to The Company's Report on Form 8-K for the period October 7, 2010 filed October 15, 2010.                    |
| 50                 | Incorporated by reference to The Company’s Form SC TO-I dated August 6, 2009.                                                     |
| 51                 | Incorporated by reference to The Company's Report on Form 8-K for the period June 10, 2011 filed June 14, 2011.                         |
| 52                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2011 filed August 9, 2011. |
| 53                 | Incorporated by reference to The Company's Report on Form 8-K for the period July 22, 2011 filed July 26, 2011.                         |
| 54                 | Incorporated by reference to The Company's Report on Form 8-K for the period August 30, 2011 filed September 6, 2011.                   |
| 55                 | Incorporated by reference to The Company's Annual Report on Form 10-K for the year ended December 31, 2010, filed March 15, 2011.       |
| 56                 | Incorporated by reference to The Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2012 filed August 6, 2012. |
| 57                 | Incorporated by reference to The Company's Report on Form 8-K for the period October 1, 2012 filed October 2, 2012.                     |
| 58                 | Incorporated by reference to The Company's Report on Form 8-K for the period October 3, 2012 filed October 9, 2012.                     |
|                    |                                                                                                                                    |   |   |

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|   | By:    | /s/ Gregory F. Chapados        |   |
|--------|--------|--------------------------------|--------|
|   |   | Gregory F. Chapados, President |   |
|   |   | (Chief Executive Officer)      |   |

| Date: | March 8, 2013 |   |
|-------|---------------|--------|

| Signature                     |   | Title                                                    |   | Date                 |
|-------------------------------|--------|----------------------------------------------------------|--------|----------------------|
|                          |   |                                                     |   |                 |
|  /s/ Gregory F. Chapados |   | President and Director                                   |   |   March 8, 2013 |
| Gregory F. Chapados           |   | (Principal Executive Officer)                            |   |                 |
|                          |   |                                                     |   |                 |
| /s/ John M. Lowber            |   | Treasurer and Director                                   |   |   March 8, 2013 |
| John M. Lowber                |   | (Principal Financial Officer)                            |   |                 |
|                          |   |                                                     |   |                 |
| /s/ Lynda L. Tarbath          |   |     Vice President, Chief Accounting |   |   March 8, 2013 |
| Lynda L. Tarbath              |   | Officer(PPrincipal Accounting Officer)                   |   |                 |

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