Alaska Communications Systems Announces Class Action Suit Settlement Agreement.

ANCHORAGE, Alaska -- Alaska Communications Systems Group, Inc. ("ACS") (Nasdaq:ALSK), the leading integrated communications provider in Alaska, today announced a proposed settlement was reached on Wednesday, September 15, 2004, in the case of Turner et al. v. ACS Long Distance, Inc. ("ACS-LD") and Alaska Communications Group, Inc. ("ACS Group").

The case was a class action lawsuit brought by Dewana Turner, Bonita Hixson, and Yolanda Monroe on behalf of a class of individuals who subscribed to ACS-LD's Infinite Minutes interstate long distance calling plan in 2000 and 2001. The Infinite Minutes Plan provided flat-rate unlimited residential interstate long distance calling for $20 per month.

The plaintiffs alleged that ACS-LD breached its contract with plan members and violated consumer protection laws when it modified the Infinite Minutes Plan in May, 2001 by imposing a 600 minute per month cap on long distance calling. ACS-LD denied that it breached its contracts with subscribers or improperly modified the plan.

The superior court recently ruled that the relationship between ACS-LD and plan members was a month-to-month contract that was terminable at will by either party and that, therefore, ACS-LD did not breach its contracts with subscribers. Other claims brought by the plaintiffs in the case remained for trial, however, which was scheduled to start on Wednesday, September 15, 2004.

Under the terms of the proposed settlement, class members will receive: (1) twelve coupons with a value of $10 each which may be used to pay for any wireline, wireless or data service provided by ACS; and (2) 100 minutes per month of ACS-LD interstate residential long distance calling for a period of twelve months.

Because the case is a class action, the proposed settlement agreement reached by the parties requires approval by the superior court. Class members will receive written notice of the proposed settlement and will be afforded an opportunity to comment on or object to its terms. After considering any comments and objections by class members, the court will determine whether the settlement should be accepted.

Both ACS-LD and the plaintiffs are pleased that the case has been resolved without the risks and additional costs of further litigation. They appreciate each other's willingness to compromise in order to address subscribers' concerns about the manner in which the Infinite Minutes Plan was modified and to provide benefits to affected individuals.

Plaintiffs' counsel in the case were Peter Maassen of the law firm of Ingaldson Maassen and Fitzgerald, and Paul Adelman of the Law Office of Paul Adelman. The defendants were represented by Jeff Feldman and Ruth Botstein of the law firm of Feldman & Orlansky.

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 www.acsalaska.com or at our investor site at www.alsk.com.