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Sitestar (News - Alert) Corporation has purchased Dial Assurance, a nationwide wholesale provider of managed modem dial solutions for Internet Service Providers (ISPs).

Sitestar is an Internet solutions provider that offers consumer and business-grade Internet access and Web hosting. Headquartered in Lynchburg, Virginia, Sitestar maintains multiple sites of operation and provides services to customers throughout the U.S. and Canada. 

The deal is expected to benefit the company by obtaining access to thousands of new dial-up numbers and significantly lowering its operating expenses to support its large dial-up customer base. 

In addition to gaining a new revenue stream from Dial Assurance's downstream ISP customers, this acquisition provides another way for ISPs to partner with Sitestar.

“The acquisition of Dial Assurance dovetails nicely with our growth strategy," said Frank R. Erhartic, Jr., CEO for Sitestar, in a statement. 

"Having worked with their management team as a customer, in Dial Assurance, we found a partner who shared our business philosophy of delivering great service at competitive prices while tightly managing operating expenses to generate strong revenue margins. By combining the two companies, we continue to diversify Sitestar's product portfolio, strengthen the Company's balance sheet and increase shareholder value." 

Sitestar by leveraging existing relationships with vendors and other contacts would be able to expand Dial Assurance's coverage area and customer base.

Sitestar will retain key Dial Assurance employees to provide on-going customer support and manage its whole network. 

Earlier in April this year, Sitestar Corporation had purchased the Internet access customer base and assets of Tennessee's N2 The Net. 

The acquisition closely followed the Company's recent purchase of Comcation.

"N2 The Net's narrowband and broadband customer base fits squarely into Sitestar's acquisition sweet-spot where our economies of scale and value-added service offerings enable us to generate stronger margins and retain customers longer than smaller ISPs can," said Frank R. Erhartic, Jr., CEO for Sitestar. 

"We are encouraged by our progress so far in 2008 and anticipate closing more opportunities by leveraging our increased cash flow to capitalize upon the current economic climate." 

N2 The Net customers can look forward to an easy transition, access to additional services such as Surfboost Web Accelerator as well as other benefits including advanced spam filtering, reliable network uptime and extended support hours, along with Sitestar's friendly, personal support.