JUNE 2011 • VOL 40 • ISSUE 2

ALEUTIAN CURRENT

AleutC O R P O R AT I O N

CEO REPORT

REMAINS BURIED ON SHEMYA ISLAND

PRESIDENT’S REPORT

BOARD ACTIONS

TAF UPDATE

ALEUT PICNICS

EASTERN ALEUTIAN PHOTOS

ALEUT WORD

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C O N T E N T S

CEO Report by Dave Gillespie

Aang Aang!

Well, spring has come to Alaska and I’ve begun to appreciate the value of blackout curtains!

This month’s topic: AMS 2.0

As you well know, Aleut Management Services (AMS) is a family of companies that performs government contracting work in the areas of Base Operations, IT Support and Operations, and Communications Technology. Based in Colorado Springs, AMS has had as many as 700 employees! Typically, AMS has represented about 80% of our revenue, but only about 50% of our cash flow. Over the past two years or so, AMS’ business environment has become increasingly challenging. Some of these challenges include:

• An erosion of support for the benefits traditionally afforded to Alaska Native Corporations under the Small Business Administration’s Section 8(a).

• A significant movement by the federal government toward insourcing, which resulted in the loss of two long-time AMS contracts at Cheyenne Mountain and Schriever Air Force Base.

• Budget constraints causing government contracting officers to focus almost solely on price without regard to additional value-adding services AMS might provide.

These pressures have caused us to see a slowing down of the AMS business. While AMS still remains profitable, its growth has slowed, and its business development pipeline (a strong indicator of potential future business) has deteriorated.

We are taking aggressive steps to totally reposition AMS to resume its strong growth now, while AMS is still in good health, rather than waiting for conditions to fade. We call this effort “AMS 2.0” to reflect that we are implementing a fundamental change to how we do business. Some of the changes we have implemented include:

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• Our new president, Sam Cole recruiting a new senior leadership team with a history of success at major government contractors like BAE, ITT and others.

• Restructuring our business development processes and organization to position AMS to prepare winning proposals.

• Driving costs out of the business to help make our prices more competitive.

AMS is a large organization and the improvements we have implemented in AMS 2.0 will take time to bear fruit. We expect our current fiscal year (2012) to continue to be transitional while we rebuild our new-business pipeline.

One of the strengths of your company is its diversity. By owning a diverse collection of operating businesses and investments, we can better manage through transitions like the one we are currently experiencing at AMS. Diversity in our businesses allows TAC to continue to fund the dividends and programs that are important to you, our shareholders.

Thanks!

continued from page 1CEO Report

Aleut remains taken from Amchitka Island during World War II were returned to the Aleut Corporation by the Puyallup Museum in the spring of 2010 under the Native American Graves Protection and Registration Act (NAGPRA).

Karlene Leeper, Cultural Resources Program Manager with the U.S. Air Force 611th Air Support Group and their crew; Debbie Corbett, U.S. Fish and Wildlife Service Archaeologist;

Aleut Remains Buried on Shemya Island

Tony Cange, President of Aleut Real Estate and Melvin Smith, Operations Manager of Aleut Real Estate transported the remains to Shemya Island for reburial. While on Shemya, Tony and Melvin also checked on the Aleut Corporation’s four 14(h)1 Historical and Cemetery lands. Burial at the gravesite on Shemya, which holds various remains from the far western Aleutians, assures that these remains will not be disturbed again, as they are in their final resting place.

Tony Cange, Debbie Corbett, Melvin Smith and Karlene Leeper

ONE OF THE STRENGTHS

OF YOUR COMPANY IS

ITS DIVERSITY.

Melvin Smith and Tony Cange at gravesite

Multiple communities voiced concerns

about the rising energy costs in our region

and rural Alaska as a whole. The A-Team

(a consortium of various entities that

provide services to stakeholders in the

Aleutian/Pribilof Islands region) will be

meeting again during the summer to discuss

the next steps to assist our communities

in conservation efficiencies, renewable

and sustainable projects and fuel issues.

An updated report will be on our website

at www.aleutcorp.com and the A-Team

website at www.aleutianenergy.org.

I am very much looking forward to seeing

the Western Aleutian and Pribilof Island

shareholders in August when I plan to

visit Unalaska, Akutan, Atka, Nikolski,

St. George and St. Paul.

Until then, have a great summer!

President’s Reportby Thomas Mack

One of my favorite times of year is May

when Village Visits begin. This May, I

visited the communities of Sand Point,

Nelson Lagoon, False Pass and King Cove.

TAC’s CEO Dave Gillespie, The Aleut

Foundation’s Executive Director Cynthia

Lind and Alaska State Representative

Bryce Edgmon joined me on my travels

to the Eastern Aleutian communities. In

each community, I held a shareholder

informational meeting to go over current

events happening at the Aleut Corporation.

The meetings were well attended and we

got excellent, positive feedback on how

much shareholders appreciate hearing

about the Corporation activities and having

their questions answered. The board and

management appreciate your feedback

and use it to help make sound decisions

on behalf of shareholders and their

descendants.

Please look for photos in this issue from

the Eastern Aleutian communities.

THE BOARD AND

MANAGEMENT APPRECIATE

YOUR FEEDBACK AND USE

IT TO HELP MAKE SOUND

DECISIONS ON BEHALF OF

SHAREHOLDERS AND THEIR

DESCENDANTS.

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The Aleut Corporation Board of

Directors welcomes the following

shareholders who have received

Aleut Corporation stock through

inheritance or gifting.

Jae Atwell

Tamara Buchanan

Deanne Burke

Anthony Cain

Mary Carter

Rachel Chuitt

Kim Cowden-Roe

Jennifer Eldred

Michael Galaktionoff

Samantha Johnson

Butch Johnson, Jr.

Tony Kalook

John McCarty

Elisabeth Melovidoff

Patrick Murphy

Clifton Newman

Jessi Newman

Nathan Newman

Raven Newman

Sierra Newman

Christopher Siftsoff

Kaylah Stroud

Payton Stroud

Cyri Thompson

Welcome New Shareholders

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Chair Report by Sharon Lind Summer 2011 is a season of change for the Aleut Corporation. We have new staff leading our largest subsidiary, AMS. Our new CEO, Dave Gillespie, led the Aleut Corporation through a very thorough and exciting strategic planning process and the board looks forward to new beginnings with Dave running our day-to-day business operations and Thomas maintaining our shareholder efforts. In February your board finished a detailed review of the Aleut Corporation’s assets and evaluated the Corporation’s strengths and weaknesses. Some apparent changes

CONTACT THE BOARD

The Aleut CorporationOne Aleut Plaza4000 Old Seward Highway, Suite 300Anchorage, AK 99503

Board Actions• Adopted revisions to Policy 204.1,

Election Cost; to increase the election cost amount from $1,000 to $2,000 that shall be reimbursed to an elected board member.

• Adopted the fiscal year 2012 incentive goal matrices for the CEO, CFO and President.

• Approved the Aleut Management Services fiscal year 2011 incentive payout in an amount not to exceed $180,000.

include some staffing changes at AMS with our new CEO Sam Cole at the helm. Smaller changes include a new focus and assessment of cash flow within the company and the recognition of our strong and weak areas of business.

While your board recognizes the importance of managing your assets and investments, we also realize the importance of hearing what shareholders want, need and expect from your corporation overall. We look forward to continuing the dialogue from our recent

• Appointed Angela Bourdukofsky to the Museum of the Aleutians Board as the Aleut Corporation representative.

• Adopted Resolution 11-07, a resolution that prohibits the fractionalization of Aleut Corporation shares.

shareholder survey and sharing with you outcomes and future follow through as a result of this critical communication tool.

Yes, summer 2011 is a season of change at the Aleut Corporation and change can sometimes be challenging. Be assured that your board is staying abreast of the challenges that lie ahead and monitoring the progress as we move toward new beginnings, face new challenges and most importantly, look at new opportunities for the Aleut Corporation.

907.561.4300 800.232.4882TACDirectors@aleutcorp.com

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Alaska Marketplace CompetitionThe Alaska Federation of Natives is calling for Alaska’s best and brightest ideas for the fifth Alaska Marketplace Competition. This is an ideas competition that supports economic development in rural Alaska. The winners of past competitions have helped create jobs and generate economic growth in Alaska’s rural communities.

Applications are available online at www.alaskamarketplace.org or by calling the Alaska Federation of Natives at (907) 274-3611. Deadline is August 1, 2011.

Shareholder Award NominationsWe are now accepting nominations for Elder and Shareholder of the Year. Get application from our website at www.aleutcorp.com or call (800) 232-4882.

Deadline is August 5, 2011.

ELDER OF THE YEAR

Peter Gordon Gould, 1986

Sergie Sovoroff, 1986

Bill Tcheripanoff, 1986

Chris Gundersen, 1998

Annie Hatch, 1999

Aleck Sr. & Anesia McGlashan, 2000

Alice Petrivelli, 2001

Hubert McCallum, 2002

Nora Newman, 2003

Richard Mack, 2004

Mary Bourdukofsky, 2004

Walter Dyakanoff, 2005

Flore Lekanof Sr., 2006

Pauline Dushkin, 2007

Ruel Holmberg, 2008

George Bezezekoff, 2009

Larry Chercasen, 2010

SHAREHOLDER OF THE YEAR

Clara Snigaroff, 1986

Lillie Hope McGarvey, 1987

Agafangel (Alfred) Stepetin, 1988

Andrew Gronholdt, 1989

Paul Gundersen, 1990

Edwin Bendixen, 1991

Innokenty Golodoff, 1991

Alex Samuelson, 1992

Fr. Michael Lestenkof, 1993

Alvin Osterback, 1993

Nicholai Lekanoff Sr., 1994

Mary Bourdukofsky, 1995

Marina Gundersen, 1996

Fr. Paul & Elizabeth Merculief, 1997

Aquilina Lestenkof, 1998

Elekonida & Andronik Kashevarof Sr., 1999

Dimitri Philemonof, 2000

Robert Galovin, 2002

Sharon Lind, 2003

Carla Chebetnoy, 2004

Chris Mandregan, 2005

Mark Snigaroff, 2006

Cynthia Lind, 2007

Jason Bourdukofsky, 2008

Zenia Borenin, 2009

Dave Nevzuroff, 2010

STUDENT OF THE YEAR

Raymond Melovidov, 2010

Past Honorees

The Aleut Foundation Update by Cynthia Lind, Executive Director

Aang Aang! Summer has arrived in Anchorage after a long winter and the staff at The Aleut Foundation has been busy. We had a wonderful turnout for the second summer scholarships. Last month I joined Thomas Mack on his village visits to Sand Point, Nelson Lagoon, False Pass and King Cove and made a presentation about The Aleut Foundation programs. It was great to meet some of our scholarship recipients and future students in the region. They are our future!

By now, I expect that you have received the Unangam (Aleut) Student Resource Handbook, which has a wealth of information about preparation for

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Aleut shareholder and descendant, Keanu Lestenkof and Sheldon Webb completed the CH2M Hill Training last month in King Salmon and were offered jobs on the North Slope.

the

foundation

“Enhancing the life and culture of the Aleut People”

For information about internships, scholarships, travel scholarships or any other programs we provide, please contact:

THE ALEUT FOUNDATIONPhone Number: 907.646.1929Toll-Free: 800.232.4882 – ask to be transferred to The Aleut FoundationFax Number: 907.646.1949Email: taf@thealeutfoundation.orgWebsite: www.thealeutfoundation.org

Congratulations Keanu and Sheldon!

REMINDERS TO OUR

SHAREHOLDERS AND

DESCENDANTS:

• You are eligible to receive funding for both education and training through The Aleut Foundation.

• The 2011-2012 School Year Scholarship deadline is June 30, 2011.

education and career planning. There is a comprehensive listing of scholarship and training opportunities that are offered by various Aleut entities such as The Aleut Foundation, APIA, APICDA, AEB, EAT AHA and many others. We hope that you will share the handbook with your family members. If you did not receive one or would like another copy we will be happy to mail one to you.

Two TAF scholarship recipients, Marlee Beers and Derek Fostyk, are participating in the First Alaskans Institute intern program this summer in Anchorage. This leadership development program matches a participant with a partner organization for a ten-week internship with emphasis on management practices, communications, policy development, planning and decision-making. We are looking forward to meeting both of them.

The Aleut Picnic will be held June 23rd at noon at the Aleut Corporation building. Please mark your calendars and bring your favorite dishes to share with our fellow Aleuts. This year there will be a Chili Cook-Off and Bake-Off. If you are going to enter either competition, please have your items at the picnic area by 11:45 a.m. for judging. We want to include them on the table so others can enjoy your tasty treats! This is

a wonderful time to visit and catch up on what has been happening. We look forward to seeing you there.

The foundation will hold the Aleut Extravaganza Raffle this year at the Aleut Corporation’s Shareholder Meeting in October. We are in the process of soliciting donations for raffle prizes. If you are interested or can suggest anyone or an organization that can donate an item, please contact us at TAF 1 (800) 232-4882 or 646-1929.

AFN will be held in Anchorage this year. If you are interested in attending the convention, please get your requests in early.

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HONORS

Scott Bartell

Jill Gilmore

Jasmine Villalobos

ExCEPTIONAL

Jessica Galovin

John Weston

ACHIEVEMENT

Faye Neiderhofer

Ashley Webb

MERIT

Richard Lindsey

Danelle Shelikoff

Rachel Zavarse

GRADUATE

Matthew Hinson

Alexandra Hope

Wayne Horine

Tina Woods

DISTANCE LEARNING

Myron Melovidov, Jr.

VOCATIONAL

Travis Burt

Michael Ferguson

Clarence Golodoff

Haley Hinkle

Nicholas Huwe

Summer Scholarship RecipientsThe Aleut Foundation is pleased to announce the 2011 Summer Scholarship recipients:

PART-TIME

Elizabeth Ball

Jessica Beers

Lisa Dirks

Nathaniel Dobbs

Arthur Endresen

Sarai Etheridge

Ray Gould

Jacole Gronholdt

Liza Mack

Tina Meehan-Regnani

Desiree Merculief

Theresa Olanna

Caitlyn Pallotta

Elizabeth Paull

Melody Quirk

Chelsea Torres-Pallotta

Lost Shareholders

Mary Bagley

John Berntsen

Carl Calugan

Maxim Chandonnet

Robert Chouinard

Melody Clary

Ronald Ericksen, II

Albert Fredericks, Jr.

Michael Galovin

Stanley Galovin

Alexandra Gilbert

Peter Gould

Lloyd Gundersen

Patrick Hackman

Rod Hare

Helen Hazel

Valerie Jacla

Butch Johnson, Jr.

Tony Kalook

Victor Lekanoff

Paula Levesque

Leo Miller

Jessi Newman

Robert Norris

Carole Orloff

Sara Orloff

Clarence Pardue

Gladys Rosier

The following shareholders are listed as Lost Shareholders because their mailings have either been returned or required

paperwork has not been completed. If you know anyone on this list, please have him or her contact the Shareholder Department at (800) 232-4882 to update his or her current contact information.

Annie Scott

Bonita Severian

Sherri Sharpe

Quemond Shearer

Arnold Sifsof

Christopher Siftsoff

Troy Smith

Tamara Solares

Muriel Tumbloo

Heather Van Pelt

Bruce Ward

Thomas White

Tony Whitted

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The Pacific Northwest Aleut Council (PNAC) in Seattle cordially invites you, your family and friends to join us at our annual picnic.

SATURDAY, AUGUST 27

NOON TO 5 P.M.

WOODLAND PARK, PICNIC SITE #6

1000 NORTH 50 STREET

SEATTLE, WASHINGTON 98103

The Pacific Northwest Aleut Council Picnic

This is a potluck event. Please bring your favorite dish to share. There will be door prizes and a raffle. You are welcome to contribute to both. If you have any questions, please contact Jane at (425) 672-6387 or gajones5@msn.com.

Please join us for the annual Aleut picnic, hosted by The Aleut Foundation. The bake-off and chili cook-off judging will be at 11:45. Bring side dishes, salads

and desserts to share.

THURSDAY, JUNE 23

NOON TO 3:00 P.M.

ALEUT CORPORATION LAWN

ONE ALEUT PLAZA

4000 OLD SEWARD HIGHWAY

Anchorage Aleut Potluck Picnic

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Shareholder Clarence Golodoff of Anchorage announces his marriage to Jane Masuleak of Nuiqsut, Alaska.

Clarence and Jane will be married on June 19, 2011, at 3:00 p.m. at the University Lake Spring Hill Suites located at 4050 University Lake Drive, Anchorage, Alaska. They invite all family and friends to join in the celebration of their marriage.

WEDDING ANNOUNCED

62 JOHN CARPENTER, JR. Pasadena, CA

97 LAWRENCE COLLINS Seattle, WA

69 JULIA DELANEYBig Lake, AK

61 MARTIN DUGAN Barraigada, Guam

92 DOROTHY DUPEE Midland, Tx

66 MARY CATHERINE FRATIS St. Paul Island, AK

89 ANNIE GOULD King Cove, AK

73 KARL HANSON Anacortes, WA

42 THOMAS HAPOFF Surprise, AZ

77 ELIZABETH HARALSON Lake Stevens, WA

CondolencesThe board of directors and the staff of the Aleut Corporation would like to extend their sincere condolences to the families and friends of shareholders who have recently passed away.

68 SHIRLEY KOCH Coos Bay, OR

86 ANNA LEKANOF Anchorage, AK

57 MARTHA MANDREGAN Valdez, AK

56 MARVA MARTIN Ocean Park, WA

86 ALExANDER MELOVIDOFF Lakewood, WA

89 NICHOLAI MERCULIEF Anchorage, AK

54 LIDA MERCULIEF Anchorage, AK

22 ANDREW MILLS Saugus, MA

73 ROBERT ROSALES Berkely, CA

29 JEFFERY WETZEL Everett, WA

Subsidiary Board MembersHOW TO APPLY

To submit your name for considerationto serve on a subsidiary board, pleasesubmit a letter of interest and a resume.

Mail:4000 Old Seward Hwy, Suite 300Anchorage, Alaska 99503Email Address: info@aleutcorp.com Fax: (907) 563-4328

Your letter of interest should includewhy you wish to serve on a subsidiaryboard and what you believe you willbring to the organization.

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Eastern Aleutian Communities

Pam Newman’s daughter and CEO Gillespie, King Cove Shareholder meeting, Sand Point

Gilda Shellikoff, False PassWind turbines, Sand Point

Shirley, Jim and Barret Brown’s greenhouse, Sand Point Marcus Adams, Sand Point

April Wilson preparing nets, Sand Point Ticket winner Raynelle Gardner, Sand Point

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Gunnar’s semi, Nelson Lagoon

Nora Newman, Sand Point

Ticket winner Della Trumble, King Cove

Shareholder meeting, King Cove

Shareholder meeting, False Pass

Manny Krone, Sand Point

Ticket winner Lori McNeley, Nelson Lagoon

Shareholder meeting, Nelson Lagoon

Unangam TunuuWord of the Week Sound file narrated by Fr. Paul Merculief from St. George Island, AK

Qagaadan Tunuu ( Eastern Dialect) Ala}u{.

Sea - ocean.

A sound file is sent as an email attachment, along with this pdf document, as part of the subscription to Unangam Tunuu Word of the Week. Please see email message to hear the attached sound file. For more information please contact Millie McKeown at milliem@apiai.org or Sharon Kay at sharonkay@apiai.org or (907) 276-2700. Week of 05/22/11

The Aleut Corporation Board of DirectorsSHARON GUENTHER LIND Chairman

DEBRA MACK Vice Chair

DICK JACOBSEN Vice President JENIFER SAMUELSON NELSON Secretary/Treasurer

TaRa BOURDUKOFSKY Director

ELARY GROMOFF JR.Director

JAMES JENCKES IIDirector

STaNLEY MACK Director

CaRL MOSES Director

A L E U T W O R DAla}u{

Sea – Ocean

TAC StaffExECUTIVE & SHAREHOLDER AFFAIRSThomas Mack, PresidentDavid Gillespie, CEOJanelle Morris, Director of Environmental, Health and Safety Memry Dahl, Human Resources DirectorChris Lace, Administrative ManagerShirlee Smith, Executive AssistantAngela Bourdukofsky, Shareholder Relations ManagerAnna Jensen, Shareholder Records ManagerMaggie Samuelson, Receptionist

FINANCE & ACCOUNTING

Tracy Woo, CFORob Hemmen, ControllerBill McDonnell, Financial Analyst Dave Nevzuroff, Accounting ManagerGenevieve Karlsen, Accounting TechnicianShelly Tuttle, Accountant

ALEUT REAL ESTATE, LLCTony Cange, PresidentMelvin Smith, Operations Manager

One Aleut Plaza

4000 Old Seward Highway, Suite 300

Anchorage, Alaska 99503

Phone Number: 907.561.4300

Toll-Free: 800.232.4882

Fax Number: 907.563.4328

Email: receptionist@aleutcorp.com

Website: www.aleutcorp.com

Shareholder Affairs

Email: info@aleutcorp.com

The Aleut Corporation reserves the

right to edit and revise all news items

submitted for publication.

PRSRT FIRST CLASSU.S. POSTAGE

PAIDPermit #69

Anchorage, AK