Lynchburg, Virginia - August 20, 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 the Company has released its second quarter financial results which puts Sitestar on a trajectory to complete its first fiscal year in which it will generate over ten million dollars in revenue. During the quarter, the Company also acquired customers from N2 the Net and AdaNet, purchased broadband customers from USA Telephone/Nationwide in a follow-up transaction and diversified its service portfolio by absorbing Dial Assurance, a wholesale dial-up provider. Financial highlights for the quarter include:
o Total Revenue for the three (3) months ended June 30, 2008 was $2,614,699, an increase of $1,085,966 or 71.0% from $1,528,733 for the same period in 2007.
o Net Income for the three (3) months ended June 30, 2008 was $396,879, an increase of $307,359 or 343.3% from $89,520 for the same period in 2007.
o Total Revenue for the six (6) months ended June 30, 2008 was $5,159,244, an increase of $2,190,530 or 73.8% from $2,968,714 for the same period in 2007.
o EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the six (6) months ended June 30, 2008 was $2,297,683, an increase of $1,155,130 or 101.1% from $1,142,553 for the same period in 2007.
o Net Income for the six (6) months ended June 30, 2008 was $700,879, an increase of $302,791 or 76% from $398,088 for the same period in 2007.
"Having fully completed the complex integration and network optimization of last year's USA Telephone/Nationwide narrowband customer acquisition, our second quarter results are the first indicative realization of the significant earnings potential from this game-changing transaction," said Frank R. Erhartic, Jr., CEO for Sitestar. "More importantly, we have successfully increased our revenue as reflected in our significant growth in total revenue, EBITDA and net income while not commensurately decreasing our cost of revenue as a percentage of sales. We believe these to be key traits of a healthy company that delivers value to its shareholders."
Commenting on Sitestar's future outlook, Mr. Erhartic added, "We are trending toward completing our first year in which we expect to achieve over $10,000,000 in sales. To propel us toward that benchmark, we are focusing our business development efforts on core acquisition targets that consist of ISP customer bases that have a strong narrowband makeup. In addition, we will expand our fledgling wholesale dial-up business which we expect to become a feeder for ISP acquisitions. Lastly, we continue to analyze the web hosting and VoIP (voice-over-internet-protocol) markets to identify synergistic business opportunities. With strong financial results and a robust opportunity pipeline, we are highly optimistic about Sitestar's 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.
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.