·	Consolidated revenue of $142.5 million

·	EBITDAS of $43.4 million

·	Net income of $3.6 million or $0.07 per diluted share

 

·	Consumer revenues totaled $62.1 million, an increase of 12.7 percent over the prior year quarter and an increase of 1.2 percent over the first quarter of 2008. The increases were across all products and services.

·

GCI local access lines increased by 14,800 over the first quarter of 2008. The increase includes access lines from the acquisition of the United companies. Consumer, network access, commercial and other local access lines totaled 137,700 at the end of the second quarter of 2008, representing an estimated 32 percent share of the total access line market in Alaska. GCI began providing local access services on its own facilities in the Nome market during the second quarter of 2008.

·

GCI has provisioned 89,700 access lines on its own facilities at the end of the second quarter of 2008, an increase of 18,600 lines over the first quarter of 2008 and an increase of 35,000 lines when compared to the end of the second quarter of the prior year. The increase in provisioned lines includes 12,200 lines acquired from the United companies. The company had provisioned 54,700 access lines on its own facilities at the end of the second quarter of 2007. Plant upgrades were completed in the Fairbanks, Seward and Homer markets during the second quarter.

·

GCI had 100,000 consumer and commercial cable modem access customers at the end of the second quarter of 2008, an increase of 300 over the 99,700 cable modem customers at the end of the first quarter 2008. Average monthly revenue per cable modem totaled $37.77 for the second quarter of 2008 as compared to $36.71 for the first quarter of 2008, an increase of 2.9 percent. The increase in average monthly revenues arises primarily from customers upgrading to plans with increased levels of service.

·	GCI has 84,100 wireless subscribers, an increase of 3,900 subscribers from the first quarter of 2008.

·	GCI’s contractors began laying 750 miles of undersea fiber that will connect 50,000 residents in several communities in Southeast Alaska. The $33 million project is expected to be completed before the end of 2008.

·

GCI is on track with its redundant fiber route to Fairbanks and with its diverse fiber route along Turnagain Arm near Anchorage. The Turnagain Arm project eliminates a current bottleneck where all of the fiber routes out of Alaska come unacceptably close together and when completed will allow GCI’s lower 48 fiber ring to fully meet the diversity requirements of the United States Department of Defense.

 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands)		(Preliminary)
		June 30,				December 31,
Assets		2008				2007
Current assets:
Cash and cash equivalents		$	95,703				13,074
Receivables			107,502				97,913
Less allowance for doubtful receivables			1,864				1,657
Net receivables			105,638				96,256
Deferred income taxes			10,423				5,734
Prepaid expenses			6,246				5,356
Inventories			5,390				2,541
Short-term investments			5,230				-
Other current assets			558				717
Total current assets			229,188				123,678
Property and equipment in service, net of depreciation			692,742				504,273
Construction in progress			115,809				69,409
Net property and equipment			808,551				573,682
Cable certificates			191,565				191,565
Goodwill			48,211				42,181
Wireless licenses			25,907				25,757
Other intangible assets, net of amortization			18,080				11,769
Deferred loan and senior notes costs, net of amortization			6,726				6,202
Other assets			11,197				9,399
Total other assets			301,686				286,873
Total assets		$	1,339,425				984,233
						(Continued)

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Continued)
(Amounts in thousands)		(Preliminary)
		June 30,				December 31,
Liabilities, Minority Interest, and Stockholders' Equity		2008				2007
Current liabilities:
Current maturities of obligations under long-term debt and capital leases		$	9,242				2,375
Accounts payable			46,094				35,747
Deferred revenue			20,886				16,600
Accrued payroll and payroll related obligations			17,401				16,329
Accrued liabilities			9,439				7,536
Accrued interest			9,322				8,927
Subscriber deposits			1,020				877
Total current liabilities			113,404				88,391
Long-term debt			707,540				536,115
Obligations under capital leases, excluding current maturities			96,254				2,290
Obligation under capital lease due to related party, excluding current   maturity			1,864				469
Deferred income taxes			93,671				84,294
Long-term deferred revenue			37,738				624
Other liabilities			19,768				12,617
Total liabilities			1,070,239				724,800
Minority interest			6,502				6,478
Commitments and contingencies
Stockholders’ equity:
Common stock (no par):
Class A.  Authorized 100,000 shares; issued 49,930 and 50,437      shares at June 30, 2008 and December 31, 2007, respectively;      outstanding 49,461 and 49,425 shares at June30, 2008 and      December 31, 2007, respectively			150,706				155,980
Class B.  Authorized 10,000 shares; issued 3,256 and 3,257 shares at      June 30, 2008 and December 31, 2007, respectively; outstanding      3,254 and 3,255 shares at June 30, 2008 and December 31, 2007,      respectively; convertible on a share-per-share basis into Class A      common stock			2,750				2,751
Less cost of 471 and 473 Class A and Class B common shares held in       treasury at June 30, 2008 and December 31, 2007, respectively			(3,422	)			(3,448	)
Paid-in capital			23,522				20,132
Retained earnings			89,128				77,540
Total stockholders' equity			262,684				252,955
Total liabilities, minority interest, and stockholders' equity		$	1,339,425				984,233

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
(Amounts in thousands, except per share amounts)		2008 (preliminary)				2007 (as restated)				2008 (preliminary)				2007 (as restated)
Revenues		$	142,461				129,890				277,135				254,921
Cost of goods sold (exclusive of depreciation and amortization shown   separately below)			52,448				45,579				103,759				93,569
Selling, general and administrative expenses			48,260				43,430				94,666				87,035
Depreciation and amortization expense			23,527				21,437				46,309				42,303
Operating income			18,226				19,444				32,401				32,014
Other income (expense):
Interest expense			(10,899	)			(8,557	)			(19,584	)			(16,875	)
Loan and senior notes fees			(879	)			(216	)			(1,102	)			(396	)
Interest income			402				161				483				345
Minority interest			26				(24	)			(24	)			(11	)
Other expense, net			(11,350	)			(8,636	)			(20,227	)			(16,937	)
Income before income tax expense			6,876				10,808				12,174				15,077
Income tax expense			3,281				4,890				6,050				6,853
Net income available to common shareholders		$	3,595				5,918				6,124				8,224
Basic net income available to common shareholders per common share		$	0.07				0.11				0.12				0.15
Diluted net income available to common shareholders per common share		$	0.07				0.11				0.11				0.14
Common shares used to calculate basic EPS			52,320				53,201				52,289				53,230
Common shares used to calculate diluted EPS			52,745				54,698				52,950				54,815
Note:
We reclassified $3.3 million and $8.2 million of network maintenance and operations expense from selling, general and administrative expense to Cost of Goods Sold for the three and six months ended June 30, 2007, respectively, to make our income statement classification more consistent with that of our peers.

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
		Second Quarter 2008 (preliminary)																								Second Quarter 2007 (as restated)
						Network								Managed				Regulated												Network								Managed
		Consumer				Access				Commercial				Broadband				Operations				Totals				Consumer				Access				Commercial				Broadband				Totals
Revenues
Voice		$	12,117				23,213				7,280				-				1,879				44,489				11,608				24,577				8,045				-				44,230
Video			25,668				-				2,149				-				-				27,817				23,907				-				2,004				-				25,911
Data			10,386				17,988				16,584				9,134				-				54,092				8,269				15,469				14,561				6,953				45,252
Wireless			13,942				690				1,431				-				-				16,063				11,344				1,570				1,583				-				14,497
Total			62,113				41,891				27,444				9,134				1,879				142,461				55,128				41,616				26,193				6,953				129,890
Cost of goods   sold (exclusive   of depreciation   and amortization)			23,689				11,529				13,912				3,020				298				52,448				22,375				8,722				12,257				2,225				45,579
Contribution			38,424				30,362				13,532				6,114				1,581				90,013				32,753				32,894				13,936				4,728				84,311
Less SG&A			26,054				9,579				8,312				3,093				1,222				48,260				22,034				9,597				9,118				2,681				43,430
Add other   income   (expense)			(12	)			(10	)			(4	)			-				-				(26	)			10				10				4				-				24
EBITDA			12,382				20,793				5,224				3,021				359				41,779				10,709				23,287				4,814				2,047				40,857
Add share-based   compensation			637				522				317				117				-				1,593				256				256				182				69				763
EBITDAS		$	13,019				21,315				5,541				3,138				359				43,372				10,965				23,543				4,996				2,116				41,620
Note:
We reclassified $3.3 million of network maintenance and operations expense from selling, general and administrative expense to Cost of Goods Sold for the three months ended June 30, 2007 to make our income statement classification more consistent with that of our peers.

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
		Second Quarter 2008 (preliminary)																								First Quarter 2008
						Network								Managed				Regulated												Network								Managed
		Consumer				Access				Commercial				Broadband				Operations				Totals				Consumer				Access				Commercial				Broadband				Totals
Revenues
Voice		$	12,117				23,213				7,280				-				1,879				44,489				11,844				21,942				7,214				-				41,000
Video			25,668				-				2,149				-				-				27,817				25,647				-				1,820				-				27,467
Data			10,386				17,988				16,584				9,134				-				54,092				10,096				16,839				16,209				7,526				50,670
Wireless			13,942				690				1,431				-				-				16,063				13,796				393				1,348				-				15,537
Total			62,113				41,891				27,444				9,134				1,879				142,461				61,383				39,174				26,591				7,526				134,674
Cost of goods   sold (exclusive   of depreciation   and amortization)			23,689				11,529				13,912				3,020				298				52,448				24,701				10,255				14,071				2,284				51,311
Contribution			38,424				30,362				13,532				6,114				1,581				90,013				36,682				28,919				12,520				5,242				83,363
Less SG&A			26,054				9,579				8,312				3,093				1,222				48,260				25,353				9,586				8,612				2,855				46,406
Add other   income   (expense)			(12	)			(10	)			(4	)			-				-				(26	)			22				19				9				-				50
EBITDA			12,382				20,793				5,224				3,021				359				41,779				11,307				19,314				3,899				2,387				36,907
Add share-based   compensation			637				522				317				117				-				1,593				496				421				253				90				1,260
EBITDAS		$	13,019				21,315				5,541				3,138				359				43,372				11,803				19,735				4,152				2,477				38,167

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
		Six Months Ended June 30, 2008 (preliminary)																								Six Months Ended June 30, 2007 (as restated)
						Network								Managed				Regulated												Network								Managed
		Consumer				Access				Commercial				Broadband				Operations				Totals				Consumer				Access				Commercial				Broadband				Totals
Revenues
Voice		$	23,978				45,155				14,494				-				1,879				85,506				22,961				48,848				15,902				-				87,711
Video			51,315				-				3,969				-				-				55,284				47,538				-				3,770				-				51,308
Data			20,482				34,827				32,793				16,660				-				104,762				16,216				30,397				28,515				13,874				89,002
Wireless			27,721				1,083				2,779				-				-				31,583				22,016				2,697				2,187				-				26,900
Total			123,496				81,065				54,035				16,660				1,879				277,135				108,731				81,942				50,374				13,874				254,921
Cost of goods   sold (exclusive   of depreciation   and amortization)			48,391				21,783				27,983				5,304				298				103,759				44,332				19,961				24,525				4,751				93,569
Contribution			75,105				59,282				26,052				11,356				1,581				173,376				64,399				61,981				25,849				9,123				161,352
Less SG&A			51,406				19,166				16,924				5,948				1,222				94,666				44,068				19,262				18,183				5,522				87,035
Add other   income   (expense)			11				9				4				-				-				24				4				5				2				-				11
EBITDA			23,688				40,107				9,124				5,408				359				78,686				20,327				42,714				7,664				3,601				74,306
Add share-based   compensation			1,134				943				569				207				-				2,853				596				594				411				147				1,748
EBITDAS		$	24,822				41,050				9,693				5,615				359				81,539				20,923				43,308				8,075				3,748				76,054
Note:
We reclassified $8.2 million of network maintenance and operations expense from selling, general and administrative expense to Cost of Goods Sold for the six months ended June 30, 2007 to make our income statement classification more consistent with that of our peers.