SOURCE: Sitestar Corporation

November 15, 2007 14:16 ET

Sitestar Announces Third Quarter Financial Results

Company Notches Twelfth Consecutive Profitable Quarter

LYNCHBURG, VA--(Marketwire - November 15, 2007) - Sitestar Corporation (OTCBB: SYTE), a provider of residential and business Internet access, web hosting and value-added products and services, announced today its financial results for the quarter ended September 30, 2007. The Company continued its streak of consecutive profitable quarters by maximizing operational efficiencies for Internet access customers acquired in the previous quarters this year and set the stage for a strong fourth quarter performance by engaging in negotiations with USA Telephone for the recently completed acquisition of nearly 40,000 narrowband subscribers marketed under the Nationwide, InReach and DFW Internet brands.

Revenue for the nine months ended September 30, 2007 increased by $164,163 or 3.8% from $4,286,437 for the nine months ended September 30, 2006 to $4,450,600 for the same period in 2007. The increase in Internet sales is attributed to the integration and optimization of operating expenses related to the asset acquisitions of Magnolia Internet Services, OW Holding (One West) and AlaNet. Combined, these acquisitions, for the nine months ended September 30, 2007, yielded approximately $1,024,000 in additional net revenues.

"As we continue to grow Sitestar, our momentum begets a beneficial, self-perpetuating cycle. With greater cash flow, we can close not only more acquisitions, but also larger deals," said Frank R. Erhartic, Jr., CEO for Sitestar. "Plus, we can leverage existing infrastructure to support newly added customers at little-to-no incremental operational cost and negotiate more advantageous terms with our suppliers."

"Dial-up acquisitions will drive our core growth in 2008," added Mr. Erhartic. "However, we expect our web hosting and soon-to-be launched Voice-over-Internet Protocol (VoIP) initiatives to begin to have an increasingly positive impact on our revenue stream going forward."

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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