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GCI TO ENTER INTO ARRANGEMENT WITH MCI

 ANCHORAGE, Alaska, Jan. 8 /PRNewswire/ -- Ron Duncan, president of General Communication Inc. (GCI) (NASDAQ: GNCMA) today announced the signing of a letter of intent between GCI and MCI Communications Corp. (NASDAQ-NMS: MCIC) calling for MCI to purchase equity in GCI, and for the two companies to enter into arrangements to provide and market telecommunications services and technology.
 According to the arrangement, MCI will purchase approximately
30 percent of GCI Class A and B stock for $13,280,000 cash. Of the total proceeds, $3,800,000 will be used to retire certain warrants and the company's Series A preferred stock. The companies intend to provide telecommunication services to each other in accordance with standard carrier arrangements. The arrangements are subject to the execution of definitive agreements, which the parties hope to sign by March 31, 1993.
 The proposed arrangement will bring new technology and services to the Alaska telecommunication market, enabling GCI to offer certain state-of-the-art "MCI-like" Intelligent Network services. Additionally, MCI will provide services and software to GCI in order to assist in the deployment of those services in Alaska.
 Richard Dowling, GCI's senior vice president of corporate development, stated, "This arrangement gives GCI the ability to offer many of the products and services provided by MCI in the Lower 48 states. It brings Alaska into the nationwide technological and service revolution." MCI and GCI will work cooperatively in the areas of service, technology and new product availability.
 "We are looking forward to working with GCI in providing the people of Alaska with many of the services that have been so successful for MCI," said Douglas L. Maine, MCI's chief financial officer.
 GCI is an Alaska-based telecommunications company. Founded in 1979, GCI began offering long distance telephone service to and from Alaska in November 1982. During GCI's 10 years of service in Alaska, it has grown from a small interstate long distance company, to one that offers both interstate and intrastate service to 95 percent of Alaska's population. GCI provides service to more than 80,000 customers.
 MCI, headquartered in Washington, D.C., offers a full range of domestic and global telecommunications services through one of the world's largest all-digital networks. The company, with expected 1992 revenues of approximately $10 billion, is the second-largest long- distance provider in the United States, and has more than 60 overseas offices in 55 countries.
 -0- 1/8/93
 /NOTE TO EDITORS: GCI is holding an executive Q&A today at 1:30 p.m. AST. Teleconferencing is available. If interested, contact Bonnie Bernholz at 907-561-4488./
 /CONTACT: John Lowber, 907-265-5600, or Linda Duck, 907-265-5458 or 907-272-5236 (weekend), both of GCI; or Bonnie Bernholz of Bernholz & Graham, 907-561-4488, for GCI; or Jim Collins of MCI, 800-289-0073 or 202-887-3000 (available until 7 p.m. EST today)/
 (GNCMA MCIC)


CO: General Communication Inc.; MCI Communications Corp. ST: Alaska, District of Columbia IN: TLS SU:

LM-JH -- SE003 -- 3121 01/08/93 15:23 EST
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Publication:PR Newswire
Date:Jan 8, 1993
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