SOURCE: Sitestar Corporation

August 08, 2008 10:39 ET

Sitestar Purchases Velocity West Customers

Acquisition Includes Wholesale & Retail Dial-up Business Plus Related Assets

LYNCHBURG, VA--(Marketwire - August 8, 2008) - Sitestar Corporation (OTCBB: SYTE), a provider of residential, business and wholesale Internet access, web hosting and value-added products and services, announced today that it has purchased the Internet-related assets of Texas-based Velocity West. The Company gains over 1,000 retail dial-up customers as well as hundreds of resellers. The transaction also includes robust administrative applications and an Internet dialer program that will enable Sitestar to better manage operating expenses by ensuring that customers are dialing into the Company's most cost-effective access lines. Additionally, an improved welcome screen portal utility will allow the Company to quickly create a standardized "start page" for newly-acquired customers that they can customize to their preferences and help them manage their account, thereby reducing the number of calls and wait-time for support agents.

"There are a myriad of benefits to Sitestar from this acquisition," said Frank R. Erhartic, Jr., CEO for Sitestar, "including new revenue from the Velocity West retail sales and its strong wholesale dial-up business. Plus, the programs they have developed can save us significant operating costs and increase our margins. We look forward to quickly implementing and integrating these assets."

Sitestar expects to maintain separate brand identities for Velocity West and the Company's other wholesale dial-up provider, Dial Assurance, but combine operating synergies to maximize efficiencies and impact. Velocity West is one of the top wholesale dial-up providers in the United States.

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 www.sitestar.com.

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