News just out on SYTE
( BW)(CA-SITESTAR-CORP)(SYTE) Sitestar to Acquire Another ISP; Company Executes Letter of Intent to Acquire Internet Service Provider
Business Editors
ENCINO, Calif.--(BUSINESS WIRE)--June 14, 2001--Sitestar Corp. (OTCBB:SYTE), an investment holding company, today announced that it has executed a letter of intent to acquire a mid-Atlantic-based Internet service provider.
This ISP is complementary to Sitestar's existing ISP business.
Based on preliminary management estimates, on a consolidated basis, this acquisition will expand Sitestar's annual revenue by approximately $1.2 million, or 25 percent.
The target company has nearly 3,000 subscribers and will substantially increase Sitestar's geographic footprint throughout its target market. The company expects to complete the acquisition in the near term. Terms of the transaction were not disclosed at this time.
Clinton J. Sallee, Sitestar's president and chief executive officer, said: "We are looking forward to adding this target company to our growing base of portfolio businesses. This transaction keeps with our objective of consolidating ISPs in the mid-Atlantic region. The target company has a well-defined niche and offers substantial long-term growth.
"This transaction will have an immediate and sustained impact on the company's earnings. It will enhance our local coverage area, allow us to further leverage our infrastructure, and substantially improve our cash flow."
About Sitestar
Sitestar is a publicly held investment company that acquires and invests in emerging technology-based enterprises. Its primary focus is the acquisition of small independent Internet service providers in the rural and secondary markets of the mid-Atlantic region of the United States.
Sitestar's wholly owned subsidiaries provide narrow and broadband Internet access, electronic infrastructure development, Web hosting and design services, and other technology-related solutions to residential and business users.
Sitestar's primary objective is to create a mix of technology- based operating companies and technology-related portfolio investments to create a broad and diverse set of core products and services that will complement and enhance the value of its existing product and service offerings.
Sitestar's wholly owned subsidiaries include Sitestar.net, Lynchburg.net, Computers By Design, Neocom Microspecialists, Soccersite.com, Greattools.com and Holland-American.com, and the company has a minority equity investment in Qliq-On Corp.
Sitestar corporate headquarters are located at 16133 Ventura Blvd., Suite 635, Encino, Calif. 91436; telephone 818/981-4519; facsimile 818/981-2658. Additional information is available on the company's Web site at http://www.sitestar.com.
Statements regarding financial matters in this news release other than historical facts are "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such statements about the company's future expectations, including future revenues and earnings, the anticipated stock dividends and all other forward-looking statements, be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results.
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CONTACT: Sitestar Corp., Encino
Clinton J. Sallee, 818/981-4519
csallee@sitestar.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: INTERNET E-COMMERCE MERGERS/ACQ