SOURCE: Sitestar Corporation

Sitestar Corporation

August 17, 2009 12:44 ET

Sitestar Posts Second Quarter 2009 Earnings

Still Profitable With Opportunities to Further Reduce Costs

LYNCHBURG, VA--(Marketwire - August 17, 2009) - Sitestar Corporation (PINKSHEETS: SYTE), a provider of residential, business and wholesale Internet access, web hosting and value-added products and services, today announced financial results for the quarter ended June 30, 2009. Overall revenue remained in-line with the Company's recent quarterly trends, while net income increased sharply due to recognition of an income tax benefit based upon Sitestar's profitable financial operations and ability to take advantage of prior tax losses. Highlights for the quarter include:

--  Total Revenue for the six (6) months ended June 30, 2009 was
    $4,832,611, a decrease of $326,633 or 6.3 percent from $5,159,244 for the
    same period in 2008.
--  Net Income for the six (6) months ended June 30, 2009 was $823,220, an
    increase of $280,873 or 51.8 percent from $542,347 for the same period in
--  EBITDA (Earnings Before Interest, Taxes, Depreciation and
    Amortization) for the six (6) months ended June 30, 2009 was $1,569,562, a
    decrease of $728,121 or 31.7 percent from $2,297,683 for the same period in

"Sitestar continues to be profitable even given the current economic environment facing many businesses and individuals," said Frank R. Erhartic, Jr., CEO for Sitestar. "Although our narrowband business is declining, we are increasing our business in areas like broadband and wholesale services where we can keep customers longer. This is giving us new opportunities to consolidate costs and increase efficiencies which we haven't yet fully realized but have been working on for many months.

"Early this year we were delisted from the Over-The-Counter (OTC) Stock Exchange due to a typographical error that caused a financial filing to be late," added Erhartic. "We have been diligently working on restoring our OTC status. We have made significant progress and we believe that we will soon be relisted. With this behind us, we will be able to be aggressive on new acquisitions to increase our revenues."

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, wholesale managed modem services for downstream ISPs and Web hosting. 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

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