ALASKA NATIVE CORPORATIONS LEAD THE TOP 49ERS

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ALASKA NATIVE CORPORATIONS LEAD THE TOP 49ERS
A look at Chevak. Down by the river, not far from the Bering Sea,
                                                         this village is of the Qissunamiut Tribe. (Story and photos on Page 7)

                                                         Alaska Native Corporations
                                                         Lead the top 49ers
                                                         Two years ago, the U.S. slipped into a recession that the country hasn’t
                                                         seen since The Great Depression. 2008 was a year of financial turmoil in
                    Mudpies and smiles in Chevak         just about every business sector.

                                                         With the release of Alaska Business Monthly’s "Alaska’s Top 49ers,"
                                                         however, it is clear that the diversity, hard work and adaptability of Alaskan
                                                         Native Corporations prevails. For 26 years, ABM has been recognizing the
                                                         top 49 Alaskan-owned-and-operated companies. Most top industries are
                                                         Native corporations and in the construction sector.

                                                         Last year, a company had to have minimum gross revenue of $50.5 million
                                                         to make the 49ers list. This year the bar was raised to $55 million, and nearly
                                                         45 percent of the list represents Native corporations – 2 percent more than
                                                         last year! Eight of the Top 10 were ANCs. Notably, of the five companies
                                                         that topped $1 billion, all were Native corporations. Calista Corp. ranked 16
                                                         in the Top 49 (28 in 2007) with reported revenue earnings of $203 million.

                                                         ANCs have been relatively secure in this otherwise tumultuous economic
                                                         era. The 2008 revenues for the combined ANCSA regional corporations
                                                         totaled $6.89 billion – an increase of 17 percent from the year prior, and
                                                         total corporate assets rose by 5 percent.

                          October 2010                   (Continued on page 4)

                2                                  3 3                            6                             7

                                                           New Calista                Calista Reports on
  President and               Elders' Teachings                                                                  Bethel Museum has New
                                                         Acquisition Gets             Growth and Future
Chairman Messages               Are Medicine                                                                       Treasures on Display
                                                         Big Recognition               at AVCP Meeting
ALASKA NATIVE CORPORATIONS LEAD THE TOP 49ERS
Chairman’s Message
                      Art Heckman, Board Chairman
                      The Board of Directors would like to extend a warm        When a lawsuit by a Calista subsidiary employee
                      welcome to Andrew Guy, the new president and              was filed against President and CEO Matthew
                      CEO of Calista.                                           Nicolai, the board promptly commissioned an
                                                                                independent external investigation. All 11 board
                      Born and raised in Napaskiak, a small village
                                                                                members attended the special meeting within a
                      six miles downriver from Bethel, Guy grew up
                                                                                matter of days of the news and voted to put Nicolai
                      speaking Yup’ik as a first language and English as a
                                                                                on administrative leave during the investigation. The
                      second. His extended family still continues to live in
                                                                                board moved to terminate Nicolai’s employment
                      Napaskiak and surrounding villages.
                                                                                contract after findings from the investigation were
                      He left Napaskiak to pursue higher education at           reported. In the 34 years Nicolai has been with
                                                                                Calista, and the 16 years as president and CEO, he
     "Calista
                      University Alaska, Fairbanks, where he received a
                      BBA in business administration. Guy then received a       has raised the company’s worth. The board thanks
 Corporation’s goal   law degree at the University of Colorado School of        him for his years of service.
                      Law in Boulder, CO. Since then he has held several
 is to maintain the   very impressive jobs, including law clerk with the
                                                                                Calista Corporation’s goal is to maintain the highest
                                                                                level of Human Resources standards and honor our
   highest level of   Native American Rights Fund and vice president of
                                                                                Yup’ik, Cup’ik and Athabascan values. We have a
 Human Resources      Yulista Management Services. Guy has also been
                                                                                code of business ethics and personnel policies that
                      a member of Calista's executive team as General
   standards and      Counsel involving him in the Corporation's contract
                                                                                establishes these standards and values.

  honor our Yup’ik,   negotiations and business enterprises.                    We know Andrew Guy will continue the work of the
                                                                                corporation and have the utmost confidence in his
     Cup’ik and       His appointment at Calista follows some rather
                                                                                corporate leadership.
Athabascan values."   unfortunate events.

                      President’s Message                                           Calista Mission Statement:
                      Andrew Guy, President and CEO
                      Calista Corporation was created to generate profits           Increase Shareholder benefits and
                      and to balance the interests of our Shareholders,             economic opportunities through
                      Descendants and clients regardless of who is at
                      the helm. It is the nature of corporations to be              innovation, growth, leadership,
                      perpetual – to survive longer than any one person.            execution and financial discipline.
                      It is not any one particular individual that makes or
                      breaks a corporation.

                      It is both humbling and an honor to be appointed          • Placed among the top 49 revenue earning
                      the new president of Calista Corporation. As a              companies in the state.
                      Calista intern in 1984, I first worked in the brokerage
                      industry and with Professional Services in the            • Issue dividend checks to Shareholders three
  "It is my goal to   planning department doing research and financial            years in a row.

    do everything     analyses. Since then my service has been at Calista       • Acquire two well-established successful Alaska
                      in a number of capacities, including director and           companies this summer. This further diversifies
   in my power to     chairman on the Calista Board, and vice president           our company, provides new job opportunities
continue increasing   of Yulista Management Services in Bethel. My work           for Shareholders and Descendants and enables a
                      experience serving as General Counsel with Calista,
    revenue, keep     the Alaska State Legislature, the Native American
                                                                                  more active business presence in our Region.

 moving operations    Rights Fund and the legal system have also                As president, one of my primary objectives is to
                                                                                create more jobs in the region. We need to be
 steadily forward     prepared me for this new role.
                                                                                concentrating on our region more than we have in
  and protect the     It is my goal to do everything in my power to             the past.
                      continue increasing revenue, keep moving
 assets of Calista    operations steadily forward and protect the assets        I have an open door policy because I like good
   Shareholders."     of Calista Shareholders.                                  communication, and welcome Shareholders to
                                                                                express their thoughts and ideas to me. I want to
                      I am a Shareholder of Napaskiak Inc. and Calista          know what people expect and want from Calista.
                      and there are many good reasons to be pleased
                      with being a Calista Shareholder.                         I am confident I can continue to lead this company
                                                                                forward, and thank you all for giving me the
                      As the second largest Native Corporation in Alaska,       opportunity to do so. I ask for your prayers for all of
                      our hard work has seen us:                                us at Calista.

 2
ALASKA NATIVE CORPORATIONS LEAD THE TOP 49ERS
Brice's successes honored
New subsidiary is Inducted
Last July, Calista Corp. acquired Brice Inc. and its family
of companies. The Brice companies include construction,
transportation, quarry and environmental services. Just a month after the
acquisition, The Brice Family of Brice Constructors was tapped to be inducted
into the Alaska Business Hall of Fame (AKBHF).

Junior Achievement of Alaska Inc. (JAA) and Alaska Business Monthly Magazine
are the primary sponsors of the AKBHF event. Since 1987, JAA has been honoring
outstanding individuals of Alaskan business. These individuals are nominated
statewide and selected by a group of business peers. Business leaders are
selected based on their commitment and direct impact toward furthering the
success of Alaska business, and commitment to Junior Achievement programs.

Junior Achievement is a worldwide organization dedicated to educating students               and they are permanently inducted and recognized for
about workforce preparedness, financial literacy and entrepreneurship. The                   their accomplishments.” The Brice Family joins ranks
annual recognition of companies into the Hall of Fame has become one of the                  among 100 other Hall of Fame Alaska laureates.
state’s most prestigious events.                                                             The official Alaska Business Hall of Fame induction
“Laureates become role models for the next generation of business leaders,” says             ceremony will be held at the Dena’ina Civic &
 JAA President Flora Teo. “Their stories are shared to young people all over the state       Convention Center, Jan. 27, 2011.

Yukon Equipment
Calista’s Newest Subsidiary
Last August, Calista further diversified and expanded its
ventures with the purchase of Yukon Equipment Inc. They
join subsidiaries Tunista Construction Inc. and the recently acquired Brice Inc.

Yukon Equipment provides equipment for a number of different types of construction
and maintenance operations. Past projects include construction of the Alaska
Highway, the trans-Alaska oil pipeline and the Distant Early Warning line support.

“We are happy to partner with such a well-established organization,” says Morry
 Hollowell, Yukon Equipment president. “This relationship will benefit our clients
 and Calista’s shareholders.”
                                                                                             The Calista-Yukon connection is a natural one which
Yukon Equipment has headquarters in Anchorage and a branch office in Fairbanks.              will lower clients’ costs and improve overall services;
Their managers will remain on staff to continue to provide the quality of service            as well as provide additional job opportunities and a
they have all along.                                                                         new revenue stream for Calista Shareholders.

Elders’ Voices Heard and Put to Text
In 2003, a three-day gathering was held           She explains that the gathering was                  the addendum to
with 20 Elders. All in their 80s and 90s, men     comprised of Elders from all over the                the book, Sparks
and women both discussed and shared with          region who were invited to discuss                   writes, “These are the
others the Cupiit/Yupiit teachings of how         traditional methods of child rearing,                stepping stones to a
best to raise our children.                       instructions for married couples and other           journey to understand
                                                  ways of Yup’ik living.                               the Cupigtatt/
This gathering was enormously inspiring
                                                                                                       Yupigtaat principles
and in its wake is the release of a 476-page     The literal translation of the title, “Qanruyuteput
                                                                                                       and maxims.”
book, transcriptions from a video of the         Iinruugut” is “Our Yup’igtaat/Cup’igtaat
meeting titled, “Qanruyuteput Iinruugut:         precepts and principles are medicine.” This           “Qanruyuteput
Our Teachings are Medicine.”                     represents the Elders’ wisdom: “Qanrututet             Iinruugut …” is
                                                 (oral instructions), if swallowed, zipped into our     published by the Association
The book, edited by Alice Rearden and
                                                 pockets or tied securely to ourselves will guide       of Village Council Presidents in partnership
Anna Jacobson of the Calista Elders Council,
                                                 us to make decisions that will heal us from            with the Alaska Native Language Center. It
took close to seven years and numerous
                                                 whatever trouble we may find ourselves in.”            is available for sale at the Yupiit Piciryarait
partners to complete.
                                                                                                        Museum in Bethel, Calista Elders Council in
                                                 The book is written word for word in Cup’igtun/
Lucy Spark, the organizer of the 2003                                                                   Anchorage and the Alaska Native Language
                                                 Yup’igtun and translated into English. In
Elders gathering wrote the introduction.                                                                Center in Fairbanks.
                                                                                                                                                      3
ALASKA NATIVE CORPORATIONS LEAD THE TOP 49ERS
Fiscal Community Impact of
    Alaska Native Corporations

    Scholarships                                                   Employment                                  Contributions
    To change the great                                            Total worldwide                             ANCs contributed more
                               $11.1 million for 3,200 students.

                                                                                                                                          $24 million to charities
                                                                                          16%
    disparity found in the                                         employment by                               than $24 million to
    education between Native                                       ANCs rose                                   charities and community-
    and non-Native students,                                       16 percent to                               oriented organizations.
    ANCs give a tremendous                                          35,430 – 15,000                            One notable organization
    amount of money toward                                         of which reside                             is the Alaskan Native
    various scholarships and                                       in Alaska. The average                      Science and Engineering
    endowments. During                                             annual compensation                         Program (ANSEP) of the
    2008, ANCs donated                                             per employee is $47,000.                    University of Alaska,
    $11.1 million toward the                                                                                   Anchorage. Dedicated to
    advancement of more than                                                                                   educating Alaska Natives
    3,200 Native students.                                                                                     in highly skilled labor,
                                                                                                               more than 190 Native
                                                                                                               scientists and engineers
                                                                                                               have graduated from
                                                                                                               ANSEP since 1992.

                                                                                                               Above ANSEP photo
                                                                                                               by Michael Dineen

4                                                                                    All figures from ANCSA Regional Association.
ALASKA NATIVE CORPORATIONS LEAD THE TOP 49ERS
Last year, total ANC assets rose by 5 percent, from $4.39 billion
to $4.61 billion. That sort of increase means Shareholders and
communities have a solid base of economic capital.

Dividends
All 12 ANCs paid                                              Arctic Slope
                       39%
dividends to
their Shareholders.
These dividends
                                                       Nana
                       2009

                              2010

rose by 39 percent
from the year prior,
from $125 million
                                                                             Doyon
to $171 million.
                                     Bering
                                     Straits

                                                                                      Ahtna
                                        Calista                          Cook Inlet

                                                                                       Chugach

                                                                                                 Sealaska
                                         Bristol Bay

                                                                        Koniag

                                       Aleut

                                                                                                            5
ALASKA NATIVE CORPORATIONS LEAD THE TOP 49ERS
AVCP Gets Calista Update                                                                Around the State:
At the Association of Village Council Presidents meeting Oct. 5th in Bethel,
Calista Corporation Board of Director Felix Hess and Chief Operations Officer
                                                                                         News From Other Regions
Christine Klein delivered a Calista company update. Together they presented and          ANC Endorsement for Murkowski
covered three topics: corporate growth and changes, strategic management plan            Last month, the Alaska Federation of Natives
and the future of Calista.                                                               Board of Directors voted unanimously to ratify a
                                                                                         resolution to endorse Lisa Murkowski as a write-
Corporate Growth and Changes
                                                                                         in candidate for the U.S. Senate. According to
The past year has been a busy one, with continuing SBA 8(a) growth and increasing
                                                                                         a press release issued by AFN, Sen. Murkowski
contracts. This is largely due to diversifying non-government revenues. In addition,
                                                                                         is the right candidate to represent the Native
Calista has seen the acquisition of two successful new companies: Yukon Equipment,
                                                                                         communities and the rest of Alaska.
a well-established heavy equipment provider, and Brice Construction, a civil
construction company that touts the highest village and local hire record in Alaska.     “AFN does not take endorsements lightly,”
Although Calista has been growing quickly and seeing solid profits, the year has also     said Albert Kookesh, co-chair of AFN’s Board
come with some internal changes. Besides Calista’s notable change at the position of      of Directors. “Today’s unanimous vote by
CEO, for the first time a COO position was added to the corporation’s ranks. As COO,      our board is a testament to the faith in Sen.
Klein’s job is to oversee the functions and general operations of the company.            Murkowski that so many of us in Alaska share.
                                                                                          She is the right person to stand up for our
“Often, rapid growth makes it more difficult to communicate regularly, internally and     Native communities, and the right person to
 externally, to each business and person on a one-on-one basis anymore—so we              stand up for all Alaska.”
 have to work even harder, faster and more efficiently than ever before,” Klein said.
                                                                                         AFN is now the largest statewide Native
From February to April the Calista Shareholder Relations Committee visited               organization in Alaska. Its membership
over 15 villages to listen to and communicate with Shareholders. Other Native            includes 178 villages, 12 regional Native
corporations have approached Calista to learn about this model effort and do             corporations and 12 regional nonprofit and
something similar. To ensure continued company success, Klein said that Calista is       tribal consortiums.
encouraging employees to cross-train with one another to provide greater depth
within the organization. Succession planning has been requested by the board for         The AFN Resolution 10-1 is slated to be the
the corporation and its subsidiaries.                                                    first addressed at this year’s convention, but
                                                                                         ANCs around the state did not wait to declare
Strategic Management Planning                                                            their endorsements.
Calista and its board have adopted a strategic management planning framework
to guide the corporation and its subsidiaries into the future. There are five            Prior to the convention, Bristol Bay Native
main areas or goals of the plan to focus on continued positive growth over the           Corporation announced it was endorsing
next five years which include: reaching $350M in revenues by 2015; increasing            Sen. Murkowski.
company pre-tax revenues; competing for and obtaining Donlin Creek contracts
                                                                                         “Keeping Lisa Murkowski as Alaska’s senior
if a mine proceeds; increasing regional infrastructure investment; and increasing
                                                                                          senator helps make sure our rural communities
Shareholder value in jobs, dividends and education. The plan is a general map
                                                                                          continue to sustain the health care, housing
intended to help the corporation, its employees and subsidiaries focus on and aim
                                                                                          and transportation infrastructure, as well
for the same goals in order to benefit Calista Shareholders.
                                                                                          as education programs that are so vital to
Calista’s Focus on the Future                                                             everyday life in rural Alaska,” said Jason
Hess and Klein said the future looks great for Calista. There are innumerable             Metrokin, BBNC president and CEO. “Not only
opportunities that lie ahead, and much of the company’s success will rely on its          has Sen. Murkowski been a tireless advocate
people, resources and diversity. Some key points included: getting better at              for Alaska Natives and our corporation, she
all that we do; becoming more competitive – business and people; positioning              has been a great representative of the best
ourselves with the capability and experience to obtain work if a mine in the region       interests of all Alaskans.”
is developed; actively participating in legislation affecting our region; and training
                                                                                         The NANA Regional Corp. also endorsed Sen.
and developing a highly capable workforce.
                                                                                         Murkowski, stating it acknowledged her track
Calista has been building partnerships with other ANCs, collaborating on                 record for securing contracts and funding
strengths and weaknesses and building complimentary businesses as seen by the            toward infrastructure improvements. As did at
recent business acquisitions. Calista’s future growth will likely come from internal     least a dozen other ANCs around the state.
growth, acquisitions and hopefully contracts at the Donlin Creek property.
                                                                                          Election Day is Nov. 2 –
To close, Klein pointed out the importance of the ANC – that it does not merely           Get out the Native vote!
function as a means to make a profit, it is also an investment in the people and
community that it ultimately serves. Doing so
entails outreach and generosity.

“Every day we get better at what we
 do,” said Klein. "Every day Calista
 increases its profitability and better
 serves its community.”

6
ALASKA NATIVE CORPORATIONS LEAD THE TOP 49ERS
Chevak

Village Profile: Chevak
Down by the riverside

 Cup’ik Rule:
Pairtesqevkenaku

                                                                                   Chiulista Brings Food
–Never go against
 the consensus of

                                                                                   to Yuut’s Tables
 the people. Always
 work together once a
 decision has been made.
                                                                                   Yuut Elitnaurviat Corp., The People’s Learning Center,
Located 15 miles east                                                              is dedicated to educating and training the local
off the Bering Sea,                                                                people of the Yukon-Kuskokwim Delta region to
Chevak is home to                                                                  obtain high wage jobs. Yuut is considered a “one-stop
nearly 1,000. The village is on the Yukon-Kuskokwim Delta, approximately           shop.” It meets the needs of those who are looking for
                                                                                   work, unemployable, uneducated or underskilled.
136 miles from Bethel and only 17 miles east of Hooper Bay.
                                                                                   The brainchild of Sen. Ted Stevens and YK Health
The word “chevak” refers to a connecting slough, where the original village was
                                                                                   Corp. CEO Gene Peltola, Yuut was formed from a
situated along – the Keoklevic River – eight miles west of where Chevak is now
                                                                                   conversation about how to offer local vocational
located. Due to storm tide flooding, “Old Chevak" was abandoned before 1950.
                                                                                   training to create a workforce that could meet the
Though the village is in the Yup’ik Eskimo region, the people of Chevak, part      needs of residents and employers. The result was a
of the Qissunamiut Tribe, are Cup’ik Eskimo – they speak a different dialect       non-profit corporation supported primarily by nine
that is understood throughout the region.                                          local “partner” organizations, including Calista Corp.

Chevak has a maritime climate. It experiences high precipitation, with             This year, Calista subsidiary Chiulista Services Inc.
temperatures that range from -25° to 79° F and a winter snowfall average of        jumped on board. CSI specializes in purchasing
                                                                                   and expediting food and housekeeping services for
60 inches. The village sits on the north banks of the Niglifak River. Skiffs are
                                                                                   remote-site projects. Their services are both efficient
used for local travel in the summer. In the winter, snowmachines are used
                                                                                   and economical.
and trails are maintained to Hooper Bay, Scammon Bay and Newtok.
                                                                                   With the introduction of CSI at Yuut, not only is
In the summer the economy relies on BLM firefighting and construction jobs,
                                                                                   food available to students on campus, but they can
but their incomes are supplemented by craftwork and subsistence; salmon,
                                                                                   also choose culinary skills from the list of vocational
seal, walrus and clams are harvested as well as duck and goose.
                                                                                   training courses offered.
Last May, Chevak was one of four villages being considered as a possible
bypass mail hub by the US Postal Service. This will most likely mean an
increase of jobs, predominately for infrastructure and airport upgrades.
The current airport’s gravel airstrip is 3,200’ long and 75’ wide. If Chevak is
approved as a mail hub, there could be economic benefits.
                                                                                                                                         7
ALASKA NATIVE CORPORATIONS LEAD THE TOP 49ERS
Gi ts o Treasured Things
                                                       History and Nostalgia on Display at Bethel Museum

                                                        Often, objects we treasure hold
                                                        great sentiment. Yet they rarely hold
                                                        significance or allure for others, unless
                                                        of course you add time and craft.

Calista HR Talent Bank
                                                       “Gifts of Treasured Things,” the new
                                                        exhibit at the Yupiit Piciryarait Museum
                                                        in Bethel, does exactly that.
When you visit Calista Corporation’s website
you’ll notice the Human Resources (HR) job             This exhibit is comprised of donations
section has moved to a new online Talent Bank          from 14 different collections. The
system. This allows HR to more quickly notify          recently accrued objects come from
applicants of open positions.                          collections and estates all over the          **NEED CAPTION**
                                                       U.S., though most are regionally
Applicants who have submitted Talent Bank
                                                       local. Among the donors is the Marie
applications within the last two years will need to
verify their information in the system by contacting   O. Swanson Estate, objects from the Swanson Store in Bethel collected over 20
the HR Department at 1-888-968-2416, ext. #2. For      years ago. The children of Rev. Thorlief Harberg and his wife Elsie Johnson Harberg
applicants outside of the two-year window, you will    donated miniature objects and other items their parents collected from 1937-1941
need to create a new profile in the system.            while they were in Alaska with the Morovian Missionary.

The HR Department regularly receives new job           Found among the treasures on display are baskets, photographs, dolls and
announcements, but if your profile is not current      interesting craftworks, like a pin cushion made from moose teeth donated by
we cannot inform you of these opportunities.           the Robert Overton collection and 15 articles of clothing donated by the Nagel
To view the Calista Corporation Career Center or       Collection. KYUK, the Native American Public Radio Station in Bethel donated
to create a profile in the Talent Bank system visit    historical footage that will play continuously in one of the galleries.
www.jobs-calista.icims.com/jobs/intro.
                                                       “Gifts of Treasured Things” will run to Jan. 15, 2011.

                                                                                                    Personal Data form
                      Anchorage, AK
U.S. Postage
PRESORTED

                       Permit # 165
STANDARD

               Paid

                                                                               Shareholder Name
                                                                               New Mailing Address
                                                                               Phone (      ) 			 -       SSN
                                                                               Birth Date 		 /		 /

                                                                               Would you like Calista to send you new will forms? n Yes n No
                                                                               Calista Shares
                                                                               Village Corporation Shares
                                                                               Please change my address as I have indicated above. I understand that you
                                                                               cannot make address changes without my permission and signature, which
                                                                               I hereby give of my own free will and without constraint. I further authorize
                                                                               Calista and its subsidiaries to share this information.
                                                                               Shareholder Signature
                                                                               			              Date      /   /
                                                                               Signature of Witness 1
                                                                               Signature of Witness 2
                        301 Calista Court, Suite A

                                                                               (Two witnesses are required if Shareholder signs with an “X.”)
                        Anchorage, AK 99518

                                                                                                                Mail to:
                                                                                                       301 Calista Court, Suite A
                                                                                                      Anchorage, AK 99518-3028
                                                                                              Toll Free 800-277-5516 • Fax 907-279-8430
                                                                                                         www.calistacorp.com
ALASKA NATIVE CORPORATIONS LEAD THE TOP 49ERS ALASKA NATIVE CORPORATIONS LEAD THE TOP 49ERS
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