SOURCE: Sitestar Corporation

August 14, 2007 18:38 ET

Sitestar Reports Second Quarter Financial Results

Company Posts Eleventh Consecutive Profitable Quarter Buoyed by Steady Revenue and Continued Growth

LYNCHBURG, VA--(Marketwire - August 14, 2007) - Sitestar Corporation (OTCBB: SYTE), a provider of residential and business Internet access, web hosting and value-added products and services, announced today its financial results for the quarter ended June 30, 2007. It marks the eleventh straight quarter of profitability for the Company which has grown its revenue primarily by increasing its Internet subscriber base through strategic acquisitions and by controlling operating expenses.

Revenue for the six months ended June 30, 2007 increased by $146,162 or 5.2% from $2,822,552 for the six months ended June 30, 2006 to $2,968,714 for the same period in 2007. The increase is largely attributed to the addition of Internet customers from the asset acquisitions of Magnolia Internet Services, OW Holdings (OneWest) and AlaNet. These acquisitions, for the six months ended June 30, 2007, yielded approximately $586,000 in additional net revenues.

"Dial-up continues to be a highly lucrative market segment for Sitestar and is the chief source of our revenues," said Frank R. Erhartic, Jr., CEO for Sitestar. "2007 appears to be a pivotal year for dial-up because ISP owners are increasingly weighing the benefits of selling their subscriber bases amidst stout competition from cable and telco broadband providers. This trend puts Sitestar and other remaining consolidators in an advantageous and opportunistic position. As a result, we are actively in negotiations with large and small ISPs and everything in-between."

"Additionally, we are exploring and ramping up other areas of our business to enable us to both complement and potentially supersede our dial-up revenue. We are near the launch date for our Voice-over-Internet Protocol (VoIP) service and expect to gradually increase resources to grow our web hosting business both organically and through acquisition. These advances along with our successful dial-up acquisition initiatives make us confident that Sitestar will continue to deliver strong and profitable quarters for some time into the future."

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 consumer and business-grade Internet access, 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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