LYNCHBURG, Va.--(BUSINESS WIRE)--Aug. 3, 2005-- Sitestar Corporation (OTCBB: SYTE), an Internet Service Provider (ISP) and computer services company, today announced that profits were posted for the quarter ended June 30, 2005. The Company earned a net profit of $155,743 for the second quarter of 2005 and $227,810 for the six months ended June 30, 2005. This marks the fourth consecutive profitable quarter for Sitestar. "We have increased net profits in each of the last four consecutive quarters and, in fact, more than doubled our earning over the first quarter of this year," says Daniel Judd, CFO for Sitestar. "I think this demonstrates our ability to streamline our costs and make money in this business. As we acquire more companies and customers, we obtain greater economies of scale, better net profits, greater market penetration and increased customer service." Sitestar recently announced a Letter of Intent to acquire the Internet assets and customer base of a larger company that should almost double their revenues. In addition to increasing profits again for the second quarter 2005, Sitestar also increased EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) over 180.0 percent from $188,173 for the six months ended June 30, 2004 to $526,969 for the same period in 2005. EBITDA is a commonly used for evaluating a company's operating profitability before non-operating expenses. Income from Operations increased from $4,668 for the first two quarters in 2004 to $312,394 for the same period in 2005. For more detailed information on Sitestar's financial position and results of operations, please see the company's 10-KSB EDGAR filing at http://www.sec.gov .
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, 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.
About Sitestar Corporation
Sitestar Corporation is a mid-Atlantic Internet Service Provider (ISP) and computer services company offering a broad range of services to business and residential customers. Sitestar's main customer base is primarily in the Virginia and North Carolina markets but also sells most of its services nationwide. Sitestar's wholly owned subsidiaries provide narrow and broadband Internet access, Web-hosting and design services, computer sales and repair and other technology-related solutions to its residential and business customers. Sitestar's wholly owned subsidiaries include Sitestar.net (http://www.sitestar.net), SurfWithUs.Net (http://www.surfwithus.net), Lynchburg.net (http://www.lynchburg.net), Advanced Internet Services (http://www.advi.net), Computers by Design (http://www.computersbydesign.com) and CBD Toner Recharge (http://www.recharge.net).
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