Exhibit 99.1

Alaska Communications Systems Increases Dividend; ACS Increases
Dividend by 8%

    ANCHORAGE, Alaska--(BUSINESS WIRE)--March 21, 2005--Alaska
Communications Systems Group, Inc. ("ACS") (NASDAQ:ALSK) today
announced its board of directors declared a quarterly cash dividend of
$0.20 per share on the company's common stock. This is an increase
over the prior quarterly cash dividend per share of $0.185 paid on
January 19, 2005, or an approximately 8 percent increase in the
previous dividend rate.
    The first quarter dividend is payable on April 19, 2005 to
stockholders of record on the close of business on March 31, 2005. The
company has approximately 40.6 million shares of common stock
outstanding as of March 21, 2005.
    "ACS delivered strong operating performance for 2004 and our
recently completed series of financial transactions have markedly
reduced our overall cost of capital and interest expenses," stated
Liane Pelletier, ACS president and chief executive officer. "After
evaluating various alternatives for the resultant higher level of cash
flow, the board elected to increase our dividend program to an annual
rate of $0.80 per share."
    David Wilson, ACS senior vice president and chief financial
officer, added, "The decision to increase our cash dividend program
reflects our confidence in our ability to sustain and grow free cash
flow over time, as well as to continue ongoing investments in growth."

    About Alaska Communications Systems

    ACS is the leading integrated communications provider in Alaska,
offering local telephone service, wireless, long distance, data, and
Internet services to business and residential customers throughout
Alaska. More information can be found on the company's website at
www.acsalaska.com or at its investor site at www.alsk.com.

    Safe Harbor Statement

    Statements about future results and other expectations constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are based
on current expectations and the current economic environment. The
company cautions that these statements are not guarantees of future
performance. Actual results may differ materially from those expressed
or implied in the forward-looking statements. A number of factors in
addition to those discussed herein could cause actual results to
differ materially from expectations. The company's financial planning
is affected by business and economic conditions and changes in
customer order patterns. Any projections are inherently subject to
significant economic and competitive uncertainties and contingencies,
many of which are beyond the control of ACS. Important assumptions and
other important factors, including risk factors, which could cause
actual results to differ materially from those in the forward-looking
statements, are specified in the company's Form 10-K for the year
ended December 31, 2004 and other filings with the SEC. The company
undertakes no obligation to update forward-looking statements, whether
as a result of new information, future events, or otherwise.

    CONTACT: Alaska Communications Systems
             Mary Ann Pease, 907-297-3000
             mpease@acsalaska.com
             or
             Lippert/Heilshorn & Associates for ACS Investors
             Kirsten Chapman, 415-433-3777
             David Barnard, CFA, 415-433-3777
             david@lhai-sf.com