Revenues increased across all company product lines for the third quarter. Long distance revenues increased $4.7 million or 10.0 percent over the third quarter of the prior year. Cable television revenues rose to $16.7 million, an increase of 9.9 percent over the prior year. Local service revenues increased $1.4 million, an improvement of 36.8 percent over the third quarter of

the prior year, while Internet revenues increased $1.0 million or 83.3 percent over the third quarter of 1999.

These results represent the third consecutive quarter of record EBITDA from our core businesses, said Ron Duncan, GCI president. Our customers want integrated communication services because it delivers the best value and satisfaction. The results from GCI’s strategy toprovide these services is expected to deliver the best value and satisfaction to our shareholders as

well.

The company’s local services business added 3,500 access lines during the third quarter and had more than 58,000 access lines in service representing a 30 percent market share in the Anchorage area. The company’s statewide Internet platform serves more than 59,000 customers GCI incurred a net loss of $2.4 million or $.05 per share for the quarter. The loss was anticipated and is primarily attributable to greater interest and depreciation charges arising from

GCI’s recent investments in major capital projects. The third quarter 2000 net loss of $0.05 per share compares to a loss of $3.5 million, or $0.08 per share for the third quarter of 1999.

GCI’s third quarter revenues increased $4.5 million to $75.9 million as compared with $71.4 million in revenues for the second quarter of 2000. The sequential increase in revenues is attributable to increases in minutes, data and private line services, local access lines and Internet customer billings. EBITDA increased on a sequential basis to $18.9 million from $16.1 million for

the second quarter of 2000. The increase in EBITDA was due primarily to the increase inrevenues. GCI’s third quarter net loss of $0.05 per share compares to a net loss of $0.08 per share in the second quarter of 2000.

For the nine months ending September 30, 2000, GCI’s revenues totaled $215.6 million,an increase of 11.8 percent, over the nine-month period ending September 30, 1999 excluding the $19.5 million sale of fiber capacity in the second quarter of 1999. EBITDA for the same nine-month period totaled $48.9 million, an increase of 58.3 percent over the prior year excluding

EBITDA from the sale of fiber capacity in the second quarter of 1999. GCI incurred a net loss of $11.4 million, or $0.25 per share, for the nine-month period ended September 30, 2000. The 2000 cumulative net loss of $0.25 per share compares to a loss of $5.9 million, or $0.13 per share for the same nine-month period ended September 30, 1999. The 1999 cumulative net loss

and loss per share include net income generated from the sale of fiber capacity in the second quarter of 1999.