Sitestar Purchases Broadband Customers From USA Telephone

LYNCHBURG, VA--(Marketwire - May 12, 2008) - 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 certain broadband digital subscriber line (DSL) accounts and related assets from USA Telephone. Last year, Sitestar closed a blockbuster deal with the Maine-based Competitive Local Exchange Carrier (CLEC) in which it acquired nearly 40,000 dial-up subscribers sold and marketed under the Nationwide Internet, InReach Internet and DFW Internet brands. This transaction increases Sitestar's broadband base and supports the Company's strategy of diversifying its customer portfolio to facilitate sustained revenue growth.

Commenting on the acquisition, Frank R. Erhartic, Jr., CEO for Sitestar, said, "We are delighted that we could leverage our existing business relationship with USA Telephone to acquire additional customers. Sitestar has earned a reputation of being able to successfully acquire, integrate and support a myriad of ISP access and web hosting customers. DSL service is typically more immune to churn than dial-up and, for this customer base, we can achieve very attractive margins by utilizing our existing infrastructure and favorable supplier partnerships."

"On behalf of everyone at Sitestar," added Mr. Erhartic, "We welcome the former USA Telephone DSL customers and look forward to serving their Internet communication needs."

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 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 www.sitestar.com.

Contact Information: Contact: Frank R. Erhartic, Jr. 434-239-4272