LYNCHBURG, Va., Aug 02, 2005 (BUSINESS WIRE) -- Sitestar Corporation (SYTE), an Internet Service Provider (ISP) and computer services company, today announced it has entered into a letter of intent to acquire a western United States company's Internet assets and mostly residential customer base. This company has over 11,000 accounts consisting of dial-up access, Digital Subscriber Line (DSL) access, wireless access, web hosting, web acceleration and other services.

"This acquisition will nearly double our sales, allow us to utilize greater economies of scale and enhance our customer service," says Daniel A. Judd, CFO for Sitestar. "This is a cash transaction with partial funding by the seller. There will be no additional shares of stock issued to pay for these assets."

"We have the knowledge, technology and staff to transition these customers into our company smoothly and quickly," says Frank R. Erhartic, Jr., CEO for Sitestar. "Since approximately twenty-five percent of these customers will be either DSL or wireless, we will be keeping a good portion of the current network infrastructure intact. In fact, the network spans six states. We look forward to welcoming these customers into Sitestar."

This transaction is scheduled to close on or before September 1, 2005. It will be subject to the satisfaction of a number of conditions, including the completion of due diligence and audits, board of director approvals, the execution of a mutually acceptable definitive agreement and other customary conditions. More information will be disclosed in a press release and an 8-K filing with the SEC when this transaction closes.

Forward looking statements

This report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Stockholders are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, our ability to expand our customer base, make strategic acquisitions, general market conditions, and competition and pricing. Although we believe the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the report will prove to be accurate.

About Sitestar Corporation

Sitestar Corporation is a mid-Atlantic Internet Service Provider (ISP) and computer services company offering a broad range of services to business and residential customers. Sitestar's main customer base is primarily in the Virginia and North Carolina markets but also sells most of its services nationwide. Sitestar's wholly owned subsidiaries provide narrow and broadband Internet access, Web-hosting and design services, computer sales and repair and other technology-related solutions to its residential and business customers.

Sitestar's wholly owned subsidiaries include Sitestar.net (http://www.sitestar.net), SurfWithUs.Net (http://www.surfwithus.net), Lynchburg.net (http://www.lynchburg.net), Advanced Internet Services (http://www.advi.net), Computers by Design (http://www.computersbydesign.com) and CBD Toner Recharge (http://www.recharge.net).

For more information, visit one of the following Web sites: www.sitestar.com, www.sitestar.net, www.lynchburg.net, www.surfwithus.net, www.advi.net, www.computersbydesign.com or www.recharge.net.

SOURCE: Sitestar Corporation

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