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SYTE News! 10Q Out! 2nd Quarter Profit
Sitestar Corporation (OTCBB: SYTE), an Internet Service Provider (ISP) and computer services company, today announced that profits were posted for the quarter ended June 30, 2005. The Company earned a net profit of $155,743 for the second quarter of 2005 and $227,810 for the six months ended June 30, 2005. This marks the fourth consecutive profitable quarter for Sitestar.

"We have increased net profits in each of the last four consecutive quarters and, in fact, more than doubled our earning over the first quarter of this year," says Daniel Judd, CFO for Sitestar. "I think this demonstrates our ability to streamline our costs and make money in this business. As we acquire more companies and customers, we obtain greater economies of scale, better net profits, greater market penetration and increased customer service."

Sitestar recently announced a Letter of Intent to acquire the Internet assets and customer base of a larger company that should almost double their revenues.

In addition to increasing profits again for the second quarter 2005, Sitestar also increased EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) over 180.0 percent from $188,173 for the six months ended June 30, 2004 to $526,969 for the same period in 2005. EBITDA is a commonly used for evaluating a company's operating profitability before non-operating expenses. Income from Operations increased from $4,668 for the first two quarters in 2004 to $312,394 for the same period in 2005.

For more detailed information on Sitestar's financial position and results of operations, please see the company's 10-KSB EDGAR filing at http://www.sec.gov .