-- Total Revenue for the three (3) months ended September 30, 2008 was
$2,485,294, an increase of $1,003,408 or 67.7% from $1,481,886 for the same
period in 2007.
-- Net Income for the three (3) months ended September 30, 2008 was
$392,060, an increase of $207,316 or 112.2% from $184,744 for the same
period in 2007.
-- Total Revenue for the nine (9) months ended September 30, 2008 was
$7,644,538, an increase of $3,193,938 or 71.8% from $4,450,600 for the same
period in 2007.
-- EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) for the nine (9) months ended September 30, 2008 was
$3,461,515, an increase of $1,748,708 or 102.1% from $1,712,807 for the
same period in 2007.
-- Net Income for the nine (9) months ended September 30, 2008 was
$1,092,939, an increase of $510,107 or 87.5% from $582,832 for the same
period in 2007.
"Increased sales results driven by our expansive customer base comprised of
narrowband, broadband and web hosting services and our thrifty,
highly-efficient approach to operations which leverages our investments in
wholesale managed modem services continue to propel Sitestar toward its
first $10,000,000-plus fiscal year," said Frank R. Erhartic, Jr., CEO for
Sitestar. "Despite the current challenging economic climate, Sitestar has
never been financially stronger. Not only is net income significantly
higher, but, more importantly, we have paid off our bank notes and are
generating sufficient cash flow to act opportunistically to continue to
fuel our growth."
Regarding the Company's future outlook, Mr. Erhartic commented, "Strong
companies make bold strides during economic downturns. We believe that
good, but monetarily weakened, ISPs will be increasingly more receptive to
being acquired by Sitestar in this market. Similarly, we think that our
high profit margin dial-up customers may be less likely to switch to more
expensive but lower margin broadband service offerings in an economy where
households seek to curtail discretionary monthly expenses. Being in a
healthy financial position amidst weakened market conditions, we are
confident about the future of Sitestar."
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.
Contact Information: Contact: Frank R. Erhartic, Jr. 434-239-4272