Alaska Communications Systems Signs Contract with AAFES.

ANCHORAGE, Alaska -- Alaska Communications Systems Group, Inc. ("ACS") (Nasdaq:ALSK), Alaska's leading integrated communications provider, today announced that it has reached an agreement with AAFES (Army and Air Force Exchange Service) to sell ACS products and services in four military exchanges.

Under the terms of the contract, customers will be able to benefit from a full line of ACS products and services as discounts will be offered to customers who select one or more ACS products and services when subscribing to services at the "One Stop Telecom Kiosks" on Elmendorf Air Force Base and Fort Richardson in Anchorage, as well as on Eielson Air Force Base and Fort Wainwright in Fairbanks. Another added benefit to our military customers is that they will not be charged a disconnection or reconnection fee when moving from one dwelling to another on base or post, as well as no penalties will be assessed if they deploy or go on temporary duty for more than 60 days.

"We're extremely honored to win this contract," said Liane Pelletier, President and CEO of ACS. "Members of the military and their families need reliable communications services and we're proud that ACS is their telecommunications company of choice."

"Our military exchanges serve more than 84,000 customers statewide," according to Linda Sparks, Alaska Business Manager for AAFES. "ACS offers the most comprehensive package available. We believe our customers will be pleased with ACS products and services."

ACS intends to open stores on four bases in August and September.

ACS and "America Supports You"

ACS is a participant in "America Supports You," a nationwide Department of Defense program that recognizes individual, community and corporate support of our men and women in uniform. As part of its campaign to honor and recognize U.S. military members, ACS will include the "America Supports You" logo and theme in print and electronic communications to staff and customers. ACS employees will be encouraged to wear lapel pins as outward symbols of support for our men and women in the Armed Forces.

About AAFES

The Army & Air Force Exchange Service (AAFES) is a joint command of the U.S. Army and U.S. Air Force, and is directed by a Board of Directors who is responsible to the Secretaries of the Army and the Air Force through the Service Chiefs of Staff. AAFES has the dual mission of providing authorized patrons with articles of merchandise and services and of generating non-appropriated fund earnings as a supplemental source of funding for military Morale, Welfare and Recreation (MWR) programs. To find out more about AAFES' history and mission or to view recent press releases, please visit our web site at http://www.aafes.com/pa/default.asp.

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 its investor site at www.alsk.com.

Safe Harbor Statement

Statements about future results and other expectations constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and the current economic environment. The company cautions that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. A number of factors in addition to those discussed herein could cause actual results to differ materially from expectations. The company's financial planning is affected by business and economic conditions and changes in customer order patterns. Any projections are inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of ACS. Important assumptions and other important factors, including risk factors, which could cause actual results to differ materially from those in the forward-looking statements, are specified in the company's Form 10-K for the year ended December 31, 2004 and other filings with the SEC. The company undertakes no obligation to update forward-looking statements, whether as a result of new information, future events, or otherwise.