Contact Information: Contact: Frank R. Erhartic, Jr. 434-239-4272
Sitestar to Restate Certain Prior Period Financial Statements
Corrective Actions and Control Already Implemented; Restatement Currently Being Completed
| Source: Sitestar Corporation
LYNCHBURG, VA--(Marketwire - May 18, 2009) - Sitestar Corporation (OTCBB : SYTE ), a
provider of residential, business and wholesale Internet access, web
hosting and value-added products and services, announced today that its
Board of Directors, on the recommendation of its independent registered
public accounting firm, determined that the Company should amend and
restate its financial statements for the quarters ended March 31, 2008,
June 30, 2008 and September 30, 2008. Accordingly, the Company's
previously issued financial statements for these periods, and all related
earnings press releases and communications relating to these periods,
should no longer be relied upon.
Management recently identified errors in the Company's calculation of the
income tax loss carry forward, an accounting technique that applies the
prior year's net operating losses to future years' profits in order to
reduce tax liability.
Sitestar has evaluated and remediated its internal controls and procedures.
The Company is currently working to prepare and file its restated financial
statements with the Securities and Exchange Commission (SEC) as soon as
practicable.
While the information herein describes all of the items for which the
Company and its independent accountants have determined a restatement is
appropriate at this time, there can be no assurance that further review of
the Company's financial statements will not identify additional items.
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.