Sitestar Redeems 32.5% of Its Outstanding Shares
LYNCHBURG, Va., Dec 11, 2002 (PRIMEZONE via COMTEX) -- Sitestar Corp.
(OTCBB: SYTE), a technology investment company, today announced that the Company
entered into a Stock Redemption Agreement on December 4, 2002, with its two
former officers and controlling shareholders, Frederick T. Manlunas and Clinton
J. Sallee. Pursuant to the Agreement, the Company redeems Messrs. Manlunas and
Sallee's remaining 32,483,346 shares of the Company's common stock in exchange
for an aggregate purchase price of $766,659, payable by the Company over a
23-month period. The redeemed shares will be returned to the Company's treasury
over the next 23 months as they are redeemed. Upon completion of the redemption,
the Company's outstanding shares of common stock will be reduced by
approximately 32.5%.
"This stock buyback will significantly reduce our outstanding shares and enhance
the ownership of all the remaining Sitestar shareholders," said Frank Erhartic,
Jr., Sitestar's President and CEO. "It is our intent to use our positive cash
flow to reduce outstanding shares, reduce debt and grow our revenues," added
Erhartic.
About Sitestar Corporation
Sitestar is a publicly held company that invests in emerging technology-based
enterprises. Its primary focus is 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, computer sales and repair and
other technology-related solutions to residential and business users.
Sitestar's wholly owned subsidiaries include Sitestar.net
(http://www.sitestar.net), Sitestar Applied Technologies
(http://www.sitestarapplied.net), Lynchburg.net (http://www.lynchburg.net),
Computers by Design (http://www.computersbydesign.com), CBD Toner Recharge
(http://www.recharge.net) and Advanced Internet Services (http://www.advi.net).
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By Staff
CONTACT: Sitestar Corporation
Frank Erhartic, Jr., CEO
434.239.4272
818.332.4213 (Fax)
investorrelations@sitestar.com
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