808461--3/7/2008--GENERAL_COMMUNICATION

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Factors That May Affect Our Business and Future Results We depend on a small number of customers for a substantial portion of our revenue and business. The loss of any of such customers would have a material adverse effect on our financial position, results of operations or liquidity. We face competition that may reduce our market share and harm our financial performance. Our business is subject to extensive governmental legislation and regulation. Applicable legislation and regulations and changes to them could adversely affect our business, financial position, results of operations or liquidity. Loss of our ETC status would disqualify us for USF subsidies. Failure to complete development, testing and deployment of new technology that supports new services could affect our ability to compete in the industry. In addition, the technology we use may place us at a competitive disadvantage. Our businesses are currently geographically concentrated in Alaska. Any deterioration in the economic conditions in Alaska could have a material adverse effect on our financial position, results of operations or liquidity. We may not fully develop our wireless services, in which case we could not meet the needs of our customers who desire such services. Prolonged service interruptions could affect our business. If failures occur in our undersea fiber optic cable systems, our ability to immediately restore the entirety of our service may be limited and we could incur significant costs, which could lead to a material adverse effect on our business, financial position, results of operations or liquidity. If a failure occurs in our satellite communications systems, our ability to immediately restore the entirety of our service may be limited. We may not be able to successfully integrate the businesses we plan to acquire in 2008. We depend on a limited number of third-party vendors to supply communications equipment. If we do not obtain the necessary communications equipment, we will not be able to meet the needs of our customers. We do not have insurance to cover certain risks to which we are subject, which could lead to the incurrence of uninsured liabilities that adversely affect our financial position, results of operations or liquidity. We must perform impairment tests of our goodwill, cable certificate and wireless license assets on an annual basis. Impairment testing may result in a material, non-cash write-down of our cable certificate, wireless license, or goodwill assets and could have a material adverse impact on our results of operations. Our significant debt could adversely affect our business and prevent us from fulfilling our obligations under our senior notes. We will require a significant amount of cash to service our debt, complete our planned network expansion, complete our planned acquisitions and to meet other obligations. Our ability to generate cash depends on many factors beyond our control. If we are unable to meet our future capital needs it may be necessary for us to curtail, delay or abandon our business growth plans. If we incur significant additional indebtedness to fund our plans, it could cause a decline in our credit rating and could increase our borrowing costs or limit our ability to raise additional capital. The terms of our debt impose restrictions on us that may affect our ability to successfully operate our business and our ability to make payments on the senior notes. Concerns about health risks associated with wireless equipment may reduce the demand for our wireless services. A significant percentage of our voting securities are owned by a small number of shareholders and these shareholders can control shareholder decisions on very important matters. Corporate governance rules may impose increased costs and internal control assessment requirements on us. If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results. As a result, current and potential shareholders could lose confidence in our financial reporting, which would harm our business and the trading price of our stock.

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808461--3/7/2008--GENERAL_COMMUNICATION_INC