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[ToshacH]

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Sitestar Pursues Planned Spin-Off

ENCINO, Calif., May 7, 2001 (BUSINESS WIRE) -- Sitestar Corp. (OTCBB:SYTE) today
announced that it is continuing to pursue the spin-off of Sitestar Applied
Technologies into a separate, independent company, per the previously announced
resolution of Sitestar's board of directors.

Sitestar wishes to update its shareholders, in response to many inquiries, that
it will attempt to bring the spin-off process to a successful conclusion in the
near future.

"Sitestar is continuing to act on its plan to become two independent public
companies, with shares of the spun off company to be traded under a different
symbol," commented Clinton J. Sallee, president and CEO of Sitestar.

"This move will create an independent public company focused on content
development, and will unlock value for shareholders. As we face continued delays
from the regulatory authorities, and in an effort to expedite the process, we
are reviewing potential merger partners that will instantly provide trading
status, in addition to pursuing the regulatory process.

"The board is committed to bringing the process to a successful completion and
will pick the alternative most advantageous to our shareholders."


About Sitestar Corp.

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,
Holland-American.com and has a minority equity investment in Qliq-On Corp.

Sitestar corporate headquarters are located at 16133 Ventura Blvd., Suite 635,
Encino, Calif. 91436, telephone [phone] and 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, 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.


CONTACT: Sitestar Corp., Encino
Clinton J. Sallee, 818/981-4519
[e-mail]

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KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
E-COMMERCE
INTERNET

STOCK SYMBOLS: [(syte)]