SOURCE: Sitestar Corporation

March 01, 2007 05:00 ET

Sitestar Acquires Assets of OneWest.net

Acquisition Fortifies Company's Foothold in the Northwestern United States

LYNCHBURG, VA -- (MARKET WIRE) -- March 1, 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 purchased the customers and assets of OneWest.net, an Internet Service Provider (ISP) having customers in Idaho, Wyoming and Montana. The acquisition will appreciably increase the company's revenue and it significantly adds to Sitestar's customer base within the Northwestern United States where Sitestar acquired many subscribers of Idacomm Corporation's Velocitus Internet Services division in 2005.

As one of the largest privately-held ISPs in the region, OneWest.net provides dial-up and broadband Internet access and email services, web hosting and domain name registration to both consumers and businesses across Idaho, Wyoming and Montana. Sitestar plans to support the OneWest.net customers by purchasing network services from Contact Communications and by utilizing its own customer provisioning and billing platform and existing call center personnel to maximize profit margins. The company also expects to increase the customer base by leveraging the strong OneWest.net brand to attract new customers.

"Our acquisition methodology targets ISP's that have successfully developed strong brand awareness and deep customer loyalty which are paramount to achieve sustainable income," said Frank R. Erhartic, Jr., CEO for Sitestar. "OneWest.net considerably boosts our subscriber count, generates steady and predictable revenue and supports our strategy to expand our broadband customer base. Plus, this deal strengthens our foothold within the region where we expect to continue to grow through new customer sign-ups and additional acquisitions."

Sitestar anticipates the migration of the OneWest.net customer base to its own infrastructure to be seamless and smooth. "We're delighted to welcome the new OneWest.net customers to Sitestar and pledge to deliver exceptional 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 (www.sitestar.com) is an Internet and computer solutions provider that offers narrow-band (dial-up) services and broadband Internet access services (ISDN, DSL, satellite, cable and wireless), Web hosting and design, and other value-added services including web acceleration, spam and virus filtering as well as spyware protection. Headquartered in Lynchburg, Virginia, Sitestar maintains multiple sites of operation and provides services to customers throughout the U.S. and Canada, with concentrations of customers in the Mid-Atlantic and Rocky Mountain regions in the U.S. and in Ontario, Canada. With a focus on competitive pricing, reliability, service and speed, Sitestar delivers customer value.

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