Sitestar Purchases DONOBi Customers & Assets

LYNCHBURG, VA--(Marketwire - November 3, 2008) - Sitestar Corporation (OTCBB: SYTE), a provider of residential, business and wholesale Internet access, web hosting and value-added products and services, announced today that it has purchased the Internet related assets of Washington-based DONOBi Internet Services. The acquisition includes dial-up, DSL and high-speed fiber optic Internet accounts as well as web hosting and collocation. Sitestar has now completed acquisitions in each quarter this fiscal year -- a first for the Company.

Fiber optic Internet service, which rides over infrastructure deployed by local Public Utility Districts (PUDs), delivers speed and bandwidth that favorably compete with other broadband services such as cable, DSL and wireless on both performance and price. Because of this, customers have a very low attrition rate. Additionally, fiber optic is a medium that is ideally suited to support services such as VoIP (Voice over Internet Protocol) and IPTV (Internet Protocol Television).

"The DONOBi transaction includes an attractive mix of high-profit, 'sticky' residential and business customers and a compelling choice of broadband solutions that we can promote to win new customers or offer to existing customers who require faster connectivity," said Frank R. Erhartic, Jr., CEO for Sitestar. "We are particularly enthusiastic about the fiber service because it is growable, has minimal customer churn and the PUD is currently increasing the fiber optic network footprint. Plus, fiber is the perfect conduit to deliver additional recurring revenue service opportunities like VoIP or IPTV, whose viability we are investigating."

The Company expects a smooth and seamless transition and plans to consolidate infrastructure from its existing regional customer base to reduce operating expenses.

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