January 30, 2006 Anchorage, AK -- Integrated communications provider Alaska Communications Systems Group, Inc. (ACS) announced that it has executed definitive agreements to assume ownership of the strategic fiber-optic cable network assets of Crest Communications, the successor to Neptune Communications. The deal follows an option exercised by ACS in April 2005, to assume ownership of the assets.

"Tremendous ACS growth drove the strategic decision to proceed with this transaction," comments Liane Pelletier, CEO and president of ACS. "This fiber-optic cable network will support the escalating demand for ACS's Internet and data services."

According to a press release, the assets consist of significant fiber-optic transport facilities in Alaska between Whittier and Anchorage, and between Anchorage and Fairbanks. Under its 2002 agreement with Crest, ACS was granted an option to exchange its $15 million note for the Alaska assets owned by Crest. No additional financial consideration is due to Crest in connection with this transaction.

The purchase, once closed, will add to an existing fiber-optic cable network owned by ACS.