ACS Granted Substantial Increase in UNE Rates.

ANCHORAGE, Alaska -- Alaska Communications Systems Group, Inc. ("ACS") (Nasdaq:ALSK) today announced an increase in the UNE loop rate that will increase revenue to ACS by some $265,000 per month based upon the current level of UNE loops in Anchorage. The UNE loop rate will increase by 28%, from $14.92 to $19.15, pursuant to the Regulatory Commission of Alaska's ("RCA") order dated June 24, 2004.

Mary Ann Pease, VP Corporate Communications, stated, "We are pleased that the RCA decision more closely aligns the rates for providing leased network services to ACS' competitors with the costs of doing so. Putting this lengthy regulatory issue behind us frees resources to focus on serving our customers." Pease added, "This helps ACS both earn a return against its significant Alaskan network investment and bolster service to customers."

About Alaska Communications Systems -- ACS is the leading integrated communications provider in Alaska, offering local telephone service, wireless, long distance, data, and Internet services to business and residential customers throughout Alaska. More information can be found on the Company's website at http://www.acsalaska.com or at our investor site at www.alsk.com.

In addition to historical information, this release includes forward-looking statements, estimates and projections that are based on current expectations only, and are subject to a number of risks, uncertainties and assumptions, many of which are beyond the control of ACS. Actual events and results may differ materially from those anticipated, estimated or projected if one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect. Factors that could affect actual results include but are not limited to: rapid technological developments and changes in the telecommunications industries; ongoing deregulation in the telecommunications industry as a result of the Telecommunications Act of 1996 and other similar federal and state legislation and the federal and state rules and regulations enacted pursuant to that legislation; regulatory limitations on ACS's ability to change its pricing for communications services; the possible future unavailability of SFAS No. 71 to ACS's wireline subsidiaries; and possible changes in the demand for ACS's products and services. In addition to these factors, actual future performance, outcomes and results may differ materially because of other, more general, factors including (without limitation) changes in general industry and market conditions and growth rates; changes in interest rates or other general national, regional or local economic conditions; governmental and public policy changes; changes in accounting policies or practices adopted voluntarily or as required by accounting principles generally accepted in the United States of America; and the continued availability of financing in the amounts, at the terms and on the conditions necessary to support ACS's future business. These and other uncertainties related to ACS's business are described in greater detail in ACS's Annual Report on Form 10-K for the year ended December 31, 2003. The information contained in this release is as of June 29, 2004. ACS undertakes no obligation to update or revise any of this information whether as a result of new information, future events or developments, or otherwise.