(COMTEX) B: Sitestar Completes Virginia Acquisition; Revenue Will Inc
B: Sitestar Completes Virginia Acquisition; Revenue Will Increase by 85%
ENCINO, Calif., Nov 28, 2000 (BUSINESS WIRE) -- Sitestar Corporation
(OTCBB:SYTE), a diversified Internet holding company, today announced that it
has successfully completed the acquisition of Lynchburg.net and Computers By
Design, based in Lynchburg, Va.
This acquisition is another aggressive step in Sitestar's consolidation strategy
of mid-Atlantic based ISPs, and will increase Sitestar's revenue base by
approximately 85%.
Lynchburg.net offers Internet access, Web design and ancillary services. It has
over 3,000 residential and commercial Internet access subscribers throughout
central and southern Virginia. Computers By Design is a retail computer sales
and service business, targeting individual and business customers. Computers By
Design also provides toner recharge services, marketed online at
www.recharge.net. The two companies generate over $1.7M in revenue and are cash
flow positive. The acquisition is immediately accretive to Sitestar's EBITDA.
Financial terms of the acquisition were not disclosed.
"I am delighted to have Lynchburg.net and Computers By Design as the newest
additions to the Sitestar family," said Clinton J. Sallee, President and CEO of
Sitestar. "Lynchburg.net is a perfect fit to our ISP consolidation strategy. It
is in the heart of our geographic target area, has significant internal growth
potential and is dominant within its local market. Computers By Design provides
us with two highly synergistic businesses, a stable revenue base and multiple
growth opportunities. In addition to the tremendous growth in geographic
coverage, subscribers base, revenue, earnings and product offerings, this
transaction greatly enhances our management team."
"This transaction reflects Sitestar's continued commitment to adding shareholder
value via an aggressive growth and expansion strategy," added Sallee.
About Sitestar Corporation
Sitestar Corp. is a diversified Internet holding company that participates,
through its wholly owned Web-based subsidiaries, in emerging segments of the
Internet, such as Internet access and e-commerce. 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.
Sitestar's wholly owned subsidiaries include NEOCOM Microspecialists,
Lynchburg.net, Sitestar.net, Soccersite.com, Greattools.com and
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 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 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 Corporation
Clinton J. Sallee, 818/981-4519
csallee@sitestar.com |
