Alaska Communications Systems Internet Debuts SmartNet: DSL for Business.

Business Editors

ANCHORAGE, Alaska--(BUSINESS WIRE)--May 10, 2000

ACS Internet (Nasdaq:ALSK) is now offering "SmartNet," a secure, high-speed business class of DSL (digital subscriber line) service to small businesses in Anchorage, Fairbanks, Juneau and Kenai/Soldotna.

SmartNet provides business owners with a cost-efficient, "always-available" and "always-on" path to the Internet for Email, web browsing, online commerce, financial transactions and more.

Jeff Tyson, VP and General Manager of ACS Internet, said that smaller businesses can now overcome the high costs of managing multiple dial-up accounts and dedicated lines using SmartNet. "With SmartNet we can network a single, high-speed connection and Internet accounts to multiple users in a business environment," he said. "It's perfect for small Local Area Networks (LANs)."

Tyson noted that as a business grows, the service will too. "SmartNet allows a business or home office to leverage the Internet for better communications and commerce. We are focused on giving small business owners and managers a high-quality, scalable platform on which they can build and grow."

SmartNet's Digital Subscriber Line (DSL) technology is an inherently more secure, dedicated connection to the Internet requiring PPPoE (Point-to-Point Protocol over Ethernet) and individual user authentication. This is a vital benefit to businesses that require greater online security for sensitive business and financial communications.

DSL utilizes copper phone lines allowing simultaneous use for voice and data service -- eliminating the need for adding additional lines.

The basic SmartNet account provides users with 320/240 Kbps (downstream/upstream) with upgrade speeds to 640/320 Kbps also available. The basic package also includes unlimited data transfers, 2 email accounts, and server storage. Additional email accounts, server storage space, static IP addresses, VPN (virtual private network) connectivity to remote LANs, and hosted email and web services are available as upgrade features.

Tyson said SmartNet will bring business customers efficient, secure, high-speed Internet access which is scalable to business needs and cycles, and in most cases, save them money by eliminating multiple phone lines, dial-up accounts and IT management costs.

Alaska Communications Systems Group, Inc., (Nasdaq:ALSK) headquartered in Anchorage, Alaska, is a diversified, full service telecommunications provider, with more than 400,000 businesses, government and residential subscribers for its long distance and facilities-based local telephone, wireless, data, network, and Internet services throughout the state.

This release contains forward-looking statements within the meaning of the federal securities laws. Actual results could differ materially from these statements as a result of many factors, including matters discussed in the Company's forms S-1 and S-4 registrations statements and in the Company's Forms 10Q and 10K, which are on file with the Securities and Exchange Commission.