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Sitestar Corporation: Sitestar to Restate Certain Prior Period Financial Statements

^{Published on 2009-05-18 13:49:40, Last Modified on 2009-11-03 07:28:35 - Market Wire}
 

LYNCHBURG, VA--(Marketwire - May 18, 2009) - Sitestar Corporation (OTCBB: [ SYTE ]), a provider of residential, business and wholesale Internet access, web hosting and value-added products and services, announced today that its Board of Directors, on the recommendation of its independent registered public accounting firm, determined that the Company should amend and restate its financial statements for the quarters ended March 31, 2008, June 30, 2008 and September 30, 2008. Accordingly, the Company's previously issued financial statements for these periods, and all related earnings press releases and communications relating to these periods, should no longer be relied upon.

Management recently identified errors in the Company's calculation of the income tax loss carry forward, an accounting technique that applies the prior year's net operating losses to future years' profits in order to reduce tax liability.

Sitestar has evaluated and remediated its internal controls and procedures.

The Company is currently working to prepare and file its restated financial statements with the Securities and Exchange Commission (SEC) as soon as practicable.

While the information herein describes all of the items for which the Company and its independent accountants have determined a restatement is appropriate at this time, there can be no assurance that further review of the Company's financial statements will not identify additional items.

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 ].