Sitestar Purchases AlaNet Assets

LYNCHBURG, VA--(Marketwire - June 25, 2007) - Sitestar Corporation (OTCBB: SYTE), a provider of residential and business Internet access, web hosting and value-added products and services, announced today that it has acquired the dial-up subscriber and web hosting customer base and other assets of AlaNet Internet Services. The deal is the third acquisition Sitestar has consummated in 2007 as the Company continues to aggressively execute its plan to increase its customer base, revenues and net profits.

Sitestar has deployed a model of steady quarterly growth with the objective of becoming one of the Internet Service Provider (ISP) industry's dominant players. With a focus on optimizing operational efficiencies, the Company has created a proven and repeatable process to identify attractive acquisition targets like AlaNet, successfully integrate their customers into the Sitestar infrastructure and generate strong returns on investment by leveraging economies of scale.

"We are dedicated to taking Sitestar to the next level by acquiring more ISPs and expanding our focus to include other growth segments and initiatives to further increase the Company's revenues," said Frank R. Erhartic, Jr., CEO for Sitestar. "Based upon our progress and performance to date, Sitestar is securely on track to meet its corporate goals and objectives. Moreover, both the depth of our opportunity pipeline and the resounding receptiveness of business owners to a Sitestar acquisition continue to buoy our optimism that 2007 will be a year of significant growth for the Company."

Sitestar expects a seamless transition of the AlaNet customer base to the Company's own infrastructure. "We welcome the new AlaNet customers to Sitestar and look forward to providing them with our pledge to deliver outstanding service and support," added Mr. Erhartic.

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 (www.sitestar.com) is an Internet and computer solutions provider that offers consumer and business-grade Internet access, Web hosting and design, and other value-added services including web acceleration, spam and virus filtering as well as spyware protection. Headquartered in Lynchburg, Virginia, Sitestar maintains multiple sites of operation and provides services to customers throughout the U.S. and Canada, with concentrations of customers in the Mid-Atlantic and Rocky Mountain regions in the U.S. and in Ontario, Canada. With a focus on competitive pricing, reliability, service and speed, Sitestar delivers customer value.

Contact Information: Contact: Frank R. Erhartic, Jr. 434-239-4272