Contact Information: Contact: Frank R. Erhartic, Jr. 434-239-4272
Sitestar Purchases Velocity West Customers
Acquisition Includes Wholesale & Retail Dial-up Business Plus Related Assets
| Source: Sitestar Corporation
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.