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Sitestar Corporation Reports Record End Of Year Results

Company Exceeds Revenue Projections, Grows Customer Base and Increases Operational Efficiencies

Sitestar Corporation , a provider of residential and business Internet access and value-added computer services, today announced record earnings for its annual results of operations ended December 31, 2005, highlighted by a net income of $640,114, resulting in an increase of $557,194 or 671.97 percent from the same period in 2004. In addition, EBITDA (earnings before interest, taxes, depreciation and amortization) surged to $1,419,317 for the year ended December 31, 2005 for an increase of $645,669 or 83.35 percent compared to the same period a year ago. The company attributes these gains to the growth of its Internet division, low customer attrition and parsimonious operational efficiencies. End of year income per share was $0.01 for the year ended December 31, 2005 compared to $0.00 for the same period in 2004.

"Our performance throughout 2005 produced a historic and momentum-building year for our company," said Frank R. Erhartic, Jr., CEO for Sitestar. "We exceeded key financial goals by aggressively and flawlessly executing our business plan that called for expanding our Internet division while minimizing customer attrition and operating with high efficiency. By leveraging these successes, we are well-positioned to continue to grow the company and deliver value for our shareholders."

Sitestar plans for controlled development in underserved rural markets in North America where the company’s dial-up and broadband Internet access products face less competition than in metropolitan markets. The company’s growth strategy includes acquiring competing ISPs in target markets, forming strategic partnerships, reducing customer attrition by providing exceptional customer service and up-selling value-added services such as its SurfBoost(TM) Web accelerator. To assist in the execution of its business plan, Sitestar announced in January that it has brought in high-tech veteran Michael Collado to lead the company’s marketing and business development efforts. Earlier this year, Sitestar has announced the acquisition of the Canadian based NetRover, Inc.

Sitestar will hold an online shareholder chat meeting in April to review its end of year results. The exact date and time is yet to be announced.

About Sitestar

Sitestar is an Internet and computer solutions provider that offers narrow and broadband Internet access, Web hosting and design, and other value-added services. The company's customers include residential and commercial accounts throughout the United States and Canada. With a focus on competitive pricing, reliability, service and speed, Sitestar delivers customer value. Sitestar is headquartered in Lynchburg, Va.

Its wholly owned subsidiaries include:

Sitestar.net
NetRover, Inc.
SurfWithUs.Net
Lynchburg.net
Advanced Internet Services
Computers by Design
CBD Toner Recharge

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.
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   President
   Sitestar Corporation
   Lynchburg,    VA,    24502
   United States
   434-239-4272 (phone)
   818-332-4213 (fax)
   investorrelations@sitestar.com
   www.sitestar.com