Sitestar to Spin Off Content Services Division; Sitestar Will Become Two Independent Public Companies With Shares of Spun Off Company to be Traded Under Different Symbol Spin-Off Targeted for January 2001 -- 11:09 AM EST
ENCINO, Calif., Nov 7, 2000 (BUSINESS WIRE) -- Sitestar Corporation
(OTCBB: SYTE) Tuesday announced that its board of directors has approved a plan
to create an independent public company focused on content development.
The goal is to unlock value by separating Sitestar's rapidly growing content
development business.
Sitestar intends to spin off the content services business, to be named Sitestar
Applied Technologies, as an independent public company that will trade under its
own separate symbol. Sitestar shareholders will benefit from the enhanced
enterprise value and will receive distribution of the new shares at a later
date. Completion of the spin-off is conditional upon receiving an IRS ruling
that will qualify it as a tax-free distribution, and is scheduled for January
2001.
Under the proposed new structure, Sitestar Corporation's Internet Access
division, Sitestar.net Inc., will continue to focus on providing Internet
connectivity, hosting and co-location solutions for businesses and residential
users in the mid-Atlantic region. Sitestar Corporation will also retain its
e-commerce portfolio. Sitestar Applied Technologies will concentrate on the
development of Web infrastructure by delivering an array of custom software and
Web-enabling solutions to small- to mid-sized businesses.
"The creation of two strong Internet services companies is a strategic milestone
for Sitestar," said Clinton J. Sallee, Sitestar president and chief executive
officer. "Over the past twelve months, we have successfully focused our efforts
and investments on consolidating Internet service providers in the mid-Atlantic
region. Along with those acquisitions, we have built a thriving content services
division. We believe that separating our Internet access and content services
into two independent public entities will allow each company to sharpen its
customer focus, enhance its competitive position, realize its full growth
potential, and maximize shareholder value," added Sallee.
Additional details concerning the spin-off will be announced in the coming
weeks.
About Sitestar Corporation
Sitestar Corporation is a diversified Internet holding company that
participates, through its wholly owned Web-based subsidiaries, in emerging
segments of the Internet such as e-commerce, value-added content, ISP and
Portal/Community.
To sustain its growth, the Company acquires and invests in emerging
Internet-related enterprises to create a broad and diverse set of core Internet
businesses that deliver a variety of online solutions.
In addition to developing and integrating Internet-based technologies, the
Company's primary objective is to maximize shareholder value by creating a
healthy mix of Internet operating companies and Internet-related portfolio
investments that will enhance the value of its core holdings.
Sitestar's wholly-owned subsidiaries include Neocom Microspecialists,
Sitestar.net, Soccersite.com, Greattools.com and Holland-American.com and it has
a minority equity investment in Qliq-On Corporation. Sitestar corporate
headquarters is located at 16133 Ventura Blvd., Suite 635, Encino, CA 91436.
Telephone 818/981-4519 and Facsimile 818/981-2658. Additional information is
available on the company's Web site at sitestar.com.
Statements regarding financial matters in this press 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 Corporation, Encino
Clinton J. Sallee, 818/981-4519
csallee@sitestar.com
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