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## Looking Ahead 

Our path for 2005 is clear. We will grow the number of loyal customers by competing as an integrated telecom company. 

## We will continue to Enhance the Overall Customer Experience 

Customers’ needs define which products we deliver and we aim to provide the best quality products in the state. Our unique mix of assets in Alaska – statewide wireless and wireline – allows for functionally-integrated products and allows for tremendous growth in the industry’s hottest areas – wireless and DSL. Alongside these high-demand services, ACS also serves our customers’ local and long distance voice and data needs, encompassing all elements of the telecom wallet. Our goal to make it easier to do business with ACS has driven us to open additional retail outlets, extend our work hours, enhance our bills, cross-train our sales representatives and much more. We listen as customers tell us which products they need and how they would like to receive them. 

## We will be known as Alaska’s Premier Wireless Provider 

Record growth in our wireless subscriber base represents Alaskans’ vote of support for the ACS CDMA network. Our CDMA 1xRTT and EV-DO (3G) network features the best voice quality, fewest dropped and blocked calls, and highest mobile data speeds in Alaska. In fact, our wireless data network is arguably the most advanced and complete anywhere in the country given our customers’ typical travel patterns. Customers can take ACS wireless across the state and maintain their mobile voice and data 

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## Letter To Shareholders Continued: 

sessions. The strength of our wireless product allows us to attract new and win back former customers, each also a prime candidate for other ACS services. 

## We will Grow Within our Cost Structure 

Our assets and our customer-centric focus allow us to achieve much growth from within. But even that growth comes with cost. Our approach toward profitable and efficient growth centers on process improvement initiatives that are standardizing practices and streamlining functions, which in turn release the funds necessary to support our growth in revenues. We reap additional benefit in that these same actions also improve the customer experience. 

Our strategy to compete as an integrated telecommunications provider reflects what customers want, it differentiates us from our competitors and it represents a smart economic model for ACS. We will sharpen our market competitiveness as we continue to drive improved quality, as we deploy advanced technologies and as we contain costs. Throughout the company, we are confident in our ability to deliver on these objectives as we grow ACS. 

I thank you for your support of Alaska Communications Systems. 

Sincerely, 

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# 2004 Letter to Shareholders 

