Sitestar to Restate Certain Prior Period Financial Statements

LYNCHBURG, VA, May 18 (MARKET WIRE) --
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.

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

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