Sitestar Completes Latest Acquisition and Expects to Double Revenues.

LYNCHBURG, Va. -- Sitestar Corporation (OTCBB: SYTE), an Internet Service Provider (ISP) and computer services company, today announced it has entered into an agreement with IDACOMM, a wholly owned subsidiary of IDACORP company (NYSE: IDA). The arrangement consists of acquiring approximately 11,500 Internet customers with such services as dial-up access, Digital Subscriber Line (DSL) access, web hosting and web acceleration. IDACOMM had marketed to these customers mainly under the Velocitus brand name. Financial terms of the transaction were not disclosed.

"We are very excited to welcome these new customers into the Sitestar family," said Frank R. Erhartic, Jr, CEO for Sitestar. "We anticipate a smooth transition. Customers will be able to keep their existing email addresses and should not notice any changes in their current service."

"This transaction will allow IDACOMM to focus on our core businesses of providing integrated voice and data solutions to commercial customers in Boise, ID and Reno and Las Vegas, NV and on developing broadband over powerline opportunities throughout the United States," said Chris Britton, president and chief executive officer of IDACOMM.

"We will be expanding the Sitestar customer base in Virginia and the Northwestern United States, with the majority of customers in Idaho, Washington, Utah, Nevada, Arizona and Virginia," said Erhartic. "We have also entered into a favorable wholesale agreement with IDACOMM to lease part of their network to service the new customers. This will be a win-win situation for everyone involved."

"This acquisition will strengthen our company by doubling our revenues and increasing net profits," said Daniel A Judd, CFO for Sitestar. "We will be able to increase our economies of scale and enhance our customer service capabilities. We will be adding more jobs and expanding our technical support hours. This transaction should have a very positive impact on our shareholder value and get us closer to our goal of 100,000 customers by the summer of 2006."

Brampton Capital acted as an advisor on the transaction.

More information will be available in an 8-K filing with the SEC.

Forward looking statements

This report contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Stockholders are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, our ability to expand our customer base, make strategic acquisitions, general market conditions, and competition and pricing. Although we believe the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the report will prove to be accurate.

About Sitestar Corporation

Sitestar Corporation is a mid-Atlantic Internet Service Provider (ISP) and computer services company offering a broad range of services to business and residential customers. Sitestar's main customer base is primarily in the Virginia and North Carolina markets but also sells most of its services nationwide. Sitestar's wholly owned subsidiaries provide narrow and broadband Internet access, Web-hosting and design services, computer sales and repair and other technology-related solutions to its residential and business customers.

Sitestar's wholly owned subsidiaries include Sitestar.net (http://www.sitestar.net), SurfWithUs.Net (http://www.surfwithus.net), Lynchburg.net (http://www.lynchburg.net), Advanced Internet Services (http://www.advi.net), Computers by Design (http://www.computersbydesign.com) and CBD Toner Recharge (http://www.recharge.net).

For more information, media only:
Frank Erhartic, Jr. [phone], [e-mail]

For more information, visit one of the following Web sites:
www.sitestar.com, www.sitestar.net, www.lynchburg.net,
www.surfwithus.net, www.advi.net, www.computersbydesign.com or
www.recharge.net.

About IDACOMM

IDACOMM is the facilities-based communications subsidiary of IDACORP (NYSE: IDA), a $2.8 billion family of companies including the award-winning utility Idaho Power. IDACOMM shares a heritage of technical expertise, customer service and financial stability uncommon in the current telecom landscape. Operating metro fiber and voice networks in Boise, Idaho, Las Vegas and Reno, Nevada, IDACOMM possesses more than 25 years of fiber optic networking expertise. Further information about the company can be found at www.idacomm.com or www.idacomm-bpl.com.