-- Total Revenue for the three (3) months ended June 30, 2008 was
$2,614,699, an increase of $1,085,966 or 71.0% from $1,528,733 for the same
period in 2007.
-- Net Income for the three (3) months ended June 30, 2008 was $396,879,
an increase of $307,359 or 343.3% from $89,520 for the same period in 2007.
-- Total Revenue for the six (6) months ended June 30, 2008 was
$5,159,244, an increase of $2,190,530 or 73.8% from $2,968,714 for the same
period in 2007.
-- EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) for the six (6) months ended June 30, 2008 was $2,297,683, an
increase of $1,155,130 or 101.1% from $1,142,553 for the same period in
2007.
-- Net Income for the six (6) months ended June 30, 2008 was $700,879, an
increase of $302,791 or 76% from $398,088 for the same period in 2007.
"Having fully completed the complex integration and network optimization of
last year's USA Telephone/Nationwide narrowband customer acquisition, our
second quarter results are the first indicative realization of the
significant earnings potential from this game-changing transaction," said
Frank R. Erhartic, Jr., CEO for Sitestar. "More importantly, we have
successfully increased our revenue as reflected in our significant growth
in total revenue, EBITDA and net income while not commensurately decreasing
our cost of revenue as a percentage of sales. We believe these to be key
traits of a healthy company that delivers value to its shareholders."
Commenting on Sitestar's future outlook, Mr. Erhartic added, "We are
trending toward completing our first year in which we expect to achieve
over $10,000,000 in sales. To propel us toward that benchmark, we are
focusing our business development efforts on core acquisition targets that
consist of ISP customer bases that have a strong narrowband makeup. In
addition, we will expand our fledgling wholesale dial-up business which we
expect to become a feeder for ISP acquisitions. Lastly, we continue to
analyze the web hosting and VoIP (voice-over-internet-protocol) markets to
identify synergistic business opportunities. With strong financial results
and a robust opportunity pipeline, we are highly optimistic about
Sitestar's future."
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