Lynchburg, Virginia - (The Hosting News) - February 26, 2007 - Residential and business Internet access, web hosting and services firm, Sitestar Corporation, has acquired the customers and assets of Magnolia Internet Services, an Arkansas-based Internet Service Provider (ISP).

Located in South Arkansas and founded in 1997, Magnolia Internet has grown its base of dial-up, Digital Subscriber Line (DSL) and web hosting customers to include both residential and business accounts. Sitestar has begun migrating the Magnolia Internet customers to its own reliable network and highly efficient customer infrastructure. The company intends to leverage its economies of scale business model to achieve robust profit margins and expects to increase customer retention by delivering higher levels of service and customer support.

Frank R. Erhartic, Jr., CEO for Sitestar remarked, “The Magnolia Internet deal neatly dovetails with our strategy to acquire the assets or customers of the seller and transition them to the Sitestar platform. Given our size and business processes, we’re able to realize greater cost savings than most ISPs, so we can generate a faster and stronger return on investment. We have established a repeatable process whereby we are identifying, qualifying and negotiating deals to grow our customer base and revenues. Most importantly, we’re looking out for our shareholders by staying disciplined and buying smart.”

Magnolia Internet customers are hoped to benefit from extended customer support hours and have access to value-added products and services. Mr. Erhartic continued, “On behalf of everyone at Sitestar, we welcome the new Magnolia Internet customers.”

Sitestar is an Internet and computer solutions provider that offers narrow-band (dial-up) services and broadband Internet access services (ISDN, DSL, satellite, cable and wireless), web hosting and design, and other value-added services including web acceleration, spam and virus filtering as well as spyware protection. Headquartered in Lynchburg, Virginia, Sitestar maintains multiple sites of operation and provides services to customers throughout the U.S. and Canada, with concentrations of customers in the Mid-Atlantic and Rocky Mountain regions in the U.S. and in Ontario, Canada. With a focus on competitive pricing, reliability, service and speed, Sitestar delivers customer value.

To learn more, please visit: www.sitestar.com.