SOURCE: Sitestar Corporation

November 09, 2007 16:26 ET

Sitestar Acquires Nationwide, InReach and Other Narrowband Customers From USA Telephone

Addition of Nearly 40,000 Subscribers to Double Revenues of Company

LYNCHBURG, VA--(Marketwire - November 9, 2007) - Sitestar Corporation (OTCBB: SYTE), a provider of residential and business Internet access, web hosting and value-added products and services, announced today that it has acquired nearly 40,000 dial-up subscribers from USA Telephone, a Competitive Local Exchange Carrier (CLEC) headquartered in Maine. The transaction, which is the largest deal Sitestar has consummated to-date, will double the Company's revenue, and will help accelerate expansion through additional customer acquisitions and fuel new-growth initiatives in web hosting services and Voice over Internet Protocol (VoIP).

The acquisition includes USA Telephone's narrowband Internet access subscribers. USA Telephone will continue to provide broadband Internet access, web hosting and other voice-related services to its customers.

"This acquisition of nearly 40,000 subscribers marks an exciting and key milestone for Sitestar," said Frank R. Erhartic, Jr., CEO for Sitestar. "By doubling our revenue stream, not only does this transaction help advance our objective of becoming one of the leading independent ISPs but, more importantly, puts Sitestar on a steeper growth trajectory, enabling us to complete more deals and pursue larger customer bases, while also generating the operating capital needed to invest in new and opportunistic business segments."

Sitestar anticipates the transition process to be seamless and smooth. "We're delighted to welcome the former USA Telephone narrowband customers to Sitestar and promise to provide an uncompromisingly high level of service and support," said Mr. Erhartic.

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements that are based on management's expectations, estimates, projections and assumptions. The Company assumes no obligation except as required by law to update the forward-looking statements contained in this press release as a result of new information or future events or developments. These forward-looking statements generally can be identified by words such as "believes," "expects," "projects," "anticipates," "foresees," "forecasts," "estimates," "should" or other words or phrases of similar import. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including and without limitation, as found in the Company's reports filed with the Securities and Exchange Commission.

About Sitestar

Sitestar is an Internet solutions provider that offers consumer and business-grade Internet access, Web hosting and Voice over Internet Protocol (VoIP). Headquartered in Lynchburg, Virginia, Sitestar maintains multiple sites of operation and provides services to customers throughout the U.S. and Canada. With a focus on competitive pricing, reliability, service and speed, Sitestar delivers customer value. For more information, visit www.sitestar.com.

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