SOURCE: Sitestar Corporation

May 19, 2008 10:28 ET

Sitestar Reports Fiscal 2007 Results

Company Continues Growth Trend; Positioned for Breakout Year in 2008

LYNCHBURG, VA--(Marketwire - May 19, 2008) - Sitestar Corporation (OTCBB: SYTE), a provider of residential and business Internet access, web hosting and value-added products and services, announced today that the Company has continued its trend of posting profitable quarters and noted its most successful fiscal year to date. Financial highlights for the year include:

--  Total Revenue was $6,567,264, an increase of $969,934 or 17.3 percent
    from $5,597,330 for the same period in 2006.
    
--  EBITDA (Earnings Before Interest, Taxes, Depreciation and
    Amortization) was $2,629,162, an increase of $385,241 or 17 percent from
    $2,243,921 for the same period in 2006.
    
--  Net Income was $789,972, a decrease of $202,413 or -20 percent from
    $992,385 for the same period in 2006.
    
--  End of year income per share was $0.01.
    

"2007 was a landmark year for Sitestar in terms of revenue growth and subscriber growth," said Frank R. Erhartic, Jr., CEO for Sitestar. "Of our 2007 acquisitions, two of them were large and one truly added the boost at the end of the year that increased our revenues and subscriber count. The financial results from the acquisition of the USA Telephone/Nationwide customer bases are not fully reflected in our year end results because of the timing and acquisition costs. Due to this acquisition and to other recently completed acquisitions, our cash flow will be significant enough to be able to close even more deals in 2008."

"We continue to be able to grow our business and turn a profit in an industry where few others are profitable," said Frank R. Erhartic, Jr. "We do this by closely watching our bottom line, seeking out acquisitions that add value and increasing our economies of scale. Sitestar is also able to up-sell additional services to our new and existing clients thereby increasing their ARPU (Average Revenue Per User). 2008 should be a great year for Sitestar as we continue to diversify and grow. With this momentum, we believe the market will put the Sitestar share price on a similar trajectory."

For more detailed information on Sitestar's financial position and results of operations, please see the company's 10-KSB EDGAR filing at http://www.sec.gov.

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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