Acquisition Extends Company's Reach Into Ohio

For Immediate Release

LYNCHBURG, Va./EWORLDWIRE/July 5, 2006 --- Sitestar Corporation (OTCBB: SYTE), a provider of residential and business Internet access and value-added computer services, today announced that it has purchased the dial-up subscriber base of FIRST NET, an Ohio-based Internet Service Provider (ISP). The acquisition is the third this year for Sitestar, following quickly upon the heels of the company’s recent purchases of Colorado’s Prolynx and Canada’s NetRover. http://newsroom.eworldwire.com/newsroom_headers/sitestarsmlogo.gif" align="right">

Founded in 1996, FIRST NET is the leading ISP in the Ohio Valley. Sitestar plans to migrate the FIRST NET subscribers to its own infrastructure to maximize operational efficiencies, a process which Sitestar expects to be seamless. Once complete, FIRST NET customers will continue to enjoy fast, easy and cost-effective dial-up Internet access plus receive additional benefits including extended technical support hours, an expanded coverage area, web acceleration, advanced e-mail antivirus and spam protection and much more.

“The purchase of FIRST NET is the culmination of our team’s extensive research, tenacity and commitment to seek out acquisition opportunities in which we can quickly realize a sound return on investment,” said Frank R. Erhartic, Jr., CEO for Sitestar. “Having strong brand recognition and customer loyalty, FIRST NET is an ideal acquisition for Sitestar and perfectly complements our growth strategy, adding approximately one million dollars to our annual revenue. We welcome the FIRST NET dial-up subscribers to Sitestar.”

Sitestar has embarked upon an aggressive campaign this year to expand its Internet subscriber base in target markets. Combined, the company’s acquisitions factor to significantly increase revenue and fuel continued growth and expansion.

“Success breeds success,” added Erhartic. “We’ve come out of the gate strong and have engaged a list of compelling acquisition candidates. We’re confident that additional acquisitions will soon follow.”

About Sitestar
Sitestar (http://www.sitestar.com) 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, and service and speed, Sitestar delivers customer value. Sitestar is headquartered in Lynchburg, Va. Its wholly owned subsidiaries and brands include Sitestar.net (www.sitestar.net), FIRST NET (www.1st.net), NetRover, Inc. (www.netrover.com), Prolynx (www.prolynx.com), SurfWithUs.Net (www.surfwithus.net), Lynchburg.net (www.lynchburg.net), Advanced Internet Services (www.advi.net), Computers by Design (www.computersbydesign.com) and CBD Toner Recharge (www.recharge.net).

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, the company's ability to expand its customer base, make strategic acquisitions, general market conditions, and competition and pricing. Although management believes 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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CONTACT:
Frank Erhartic, Jr.
Sitestar Corporation
7109 Timberlake Road
Lynchburg, VA 24502
PHONE. 434-239-4272
FAX. 818-332-4213
EMAIL: investorrelations@sitestar.com
http://www.sitestar.com

Michael Collado
Sitestar Corporation
7109 Timberlake Road
Lynchburg, VA 24502
PHONE. 434-239-4272
EMAIL: marketing@sitestar.com
http://www.sitestar.com

WEBSITES: http://www.sitestar.com, http://www.sitestar.net, http://www.netrover.com, http://www.surfwithus.net, http://www.lynchburg.net, http://www.computersbydesign.com, http://www.recharge.net, http://www.advi.net

SOURCE: Sitestar