| NEVADA                                                              |   | 88-0397234                           |
|---------------------------------------------------------------------|--------|--------------------------------------|
|  (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. Employer Identification No.) |

----

|                                                                                                                                                                                                                                               |   | Page Number |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|
| PART I.  FINANCIAL INFORMATION                                                                                                                                                                                                                |   |        |
|                                                                                                                                                                                                                                               |   |        |
| Item 1.  Financial Statements (Unaudited)                                                                             |   |        |
|                                                                                                                                                                                                                                               |   |        |
| Condensed Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010                                                                                                                                                                   |   |  2-3   |
|                                                                                                        |   |        |
| Condensed Consolidated Statements of Income for the three months ended March 31, 2011 and 2010                                                                                                                                                     |   |  4     |
|                                                                                                                                                                                                                                               |   |        |
| Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2011 and 2010                                                                                                                                                 |   |  5-6   |
|                                                                                                                                                                                                                                               |   |        |
| Notes to Condensed Consolidated Financial Statements                                                                                                                                                                                               |   |  7-16  |
|                                                                                                                                                                                                                                               |   |        |
| Item 2.   Management's Discussion and Analysis                                                                                                                                                                                           |   | 17-23       |
|                                                                                                                                                                                                                                               |   |        |
| Item 3.   Quantitative and Qualitative Disclosures About Market Risk                                                                                                                                                                |   | 23          |
|                                                                                                                                                                                                                                          |   |        |
| Item 4.   Controls and Procedures                                                                                                                                                                     |   | 24          |
|                                                                                                                                                                                                                                               |   |        |
| Part II.  OTHER INFORMATION                                                                                                                              |   | 25          |
|                                                                                                                                                                                                                                               |   |        |
| Item 1.  Legal Proceedings                                                                                                                                              |   | 25          |
|                                                                                                                                                                                                                                               |   |        |
| Item 1A. Risk Factors                                                                                                           |   | 25          |
|                                                                                                                                                                                                                                               |   |        |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                 |   | 25          |
|                                                                                                                                                                                                                                               |   |        |
| Item 3.  Defaults Upon Senior Securities                                                                                                                                |   | 25          |
|                                                                                                                                                                                                                                               |   |        |
| Item 4.  Submission of Matters to a Vote of Security Holders                                                                                                                                                    |   | 25          |
|                                                                                                                                                                                                                                               |   |        |
| Item 5.  Other Information                                     |   | 25          |
|                                                                                                                                                                                                                                               |   |        |
| Item 6.  Exhibits                                                                                                                                                                                                                             |   | 25          |
|                                                                                                                                                                                                                                               |   |        |
| SIGNATURES                                                                                                                                                                                                                                         |   | 26     |

----

|                                                                          |   | 2011        |      |   | 2010   |   |
|-------------------------------------------------------------------------------|--------|-------------|-----------|--------|--------|--------|
|                                                                          |   | (Unaudited) |      |   |   |   |
| CURRENT ASSETS                                                                |   |        |      |   |   |   |
|    Cash and cash equivalents                                   |   | $           | 216,114   |   |   | $      | 939,328 |   |
|    Accounts receivable, net of allowance of $6,089 and $5,433  |   |        | 85,986    |   |   |   | 74,669 |   |
|    Prepaid expenses                                            |   |        | 20,289    |   |   |   | 1,500 |   |
|        Total current assets                |   |        | 322,389   |   |   |   | 1,015,497 |   |
| PROPERTY AND EQUIPMENT, net                                                   |   |        | 174,923   |   |   |   | 177,844 |   |
| CUSTOMER LIST, net of accumulated amortization of $12,102,167 and $11,977,598 |   |        | 251,506   |   |   |   | 279,075 |   |
| GOODWILL, net of impairment                                                   |   |        | 1,288,559 |   |   |   | 1,288,559 |   |
| DEFERRED TAX ASSETS                                                           |   |        | 1,030,223 |   |   |   | 763,033 |   |
| REAL ESTATE HELD FOR INVESTMENT                                               |   |        | 1,378,172 |   |   |   | 515,202 |   |
| OTHER ASSETS                                                                  |   |        | 299,359   |   |   |   | 305,250 |   |
| TOTAL ASSETS                                                                  |   | $           | 4,745,131 |   |   | $      | 4,344,460 |   |

----

|                                                                                                                                                                                  |   | 2011        |               |   | 2010   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------------------|--------|--------|--------|
|                                                                                                                                                                                  |   | (Unaudited) |               |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                                   |   |        |               |   |   |   |
|   Accounts payable                                                                                                                                                          |   | $           | -                  |   |   | $      | 15,565 |   |
|   Accrued income taxes                                                                                                                                                      |   |        | 37,405             |   |   |   | 147,717 |   |
|   Accrued expenses                                                                                                                                                          |   |        | 28,300             |   |   |   | 22,528 |   |
|   Deferred revenue                                                                                                                                                          |   |        | 588,135            |   |   |   | 594,038 |   |
|   Notes payable                                                                                                                                                             |   |        | 933,615            |   |   |   | 900,615 |   |
|      Total current liabilities                                                                                                                               |   |        | 1,587,455          |   |   |   | 1,680,463 |   |
|   NOTES PAYABLE - STOCKHOLDERS                                                                                                                                              |   |        | 89,920             |   |   |   | 49,460 |   |
|   TOTAL LIABILITIES                                                                                                                                                         |   |        | 1,677,375          |   |   |   | 1,729,923 |   |
| STOCKHOLDERS' EQUITY                                                                                                                                                                  |   |        |               |   |   |   |   |   |
|   Preferred Stock, $.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding                                                                           |   |        | -                  |   |   |   | - |   |
|   Common stock, $.001 par value, 300,000,000 shares authorized, 91,326,463 shares issued in 2011 and 2010 and 74,585,705 and 74,735,705 shares outstanding in 2011 and 2010 |   |        |   91,326 |   |   |   |    91,326 |   |
|   Additional paid-in capital                                                                                                                                                |   |        | 13,880,947         |   |   |   | 13,880,947 |   |
|  Treasury stock, at cost, 16,740,758 and 16,590,758 common shares                                                                                                                |   |        | (786,794           | )      |   |   |  (785,024 | ) |
|   Accumulated deficit                                                                                                                                                       |   |        | (10,117,723        | )      |   |   | (10,572,712 | ) |
|      Total stockholders’ equity                                                                                                                        |   |        | 3,067,756          |   |   |   | 2,614,537 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                            |   | $           | 4,745,131          |   |   | $      | 4,344,460 |   |

----

|                                                          |   | 2011   |          |   | 2010   |   |
|---------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|
| REVENUE                                                       |   | $      | 1,048,615     |   |   | $      | 1,462,009 |   |
|                                                          |   |   |          |   |   |   |   |   |
| COST OF REVENUE                                               |   |   | 491,485       |   |   |   | 657,729 |   |
|                                                          |   |   |          |   |   |   |   |   |
| GROSS PROFIT                                                  |   |   | 557,130       |   |   |   | 804,280 |   |
|                                                          |   |   |          |   |   |   |   |   |
|  OPERATING EXPENSES:                                     |   |   |          |   |   |   |   |   |
|    Selling general and administrative expenses |   |   |  378,941 |   |   |   | 778,320 |   |
|                                                          |   |   |          |   |   |   |   |   |
| INCOME (LOSS) FROM OPERATIONS                                 |   |   | 178,189       |   |   |   | 25,960 |   |
|                                                          |   |   |          |   |   |   |   |   |
| OTHER INCOME (EXPENSES)                                       |   |   | 44            |   |   |   | (27,500 | ) |
|                                                          |   |   |          |   |   |   |   |   |
| INCOME (LOSS) BEFORE INCOME TAXES                             |   |   | 178,233       |   |   |   | (1,540 | ) |
|                                                          |   |   |          |   |   |   |   |   |
| INCOME TAXES (EXPENSE) BENEFIT                                |   |   |  276,756 |   |   |   | 9,578 |   |
|                                                          |   |   |          |   |   |   |   |   |
| NET INCOME (LOSS)                                             |   | $      | 454,989       |   |   | $      | 8,038 |   |
|                                                          |   |   |          |   |   |   |   |   |
| BASIC AND DILUTED EARNINGS PER SHARE                          |   | $      | 0.01          |   |   | $      | 0.00 |   |
|                                                          |   |   |          |   |   |   |   |   |
| WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED       |   |   | 74,691,038    |   |   |   | 75,319,705 |   |

----

|                                                                                             |   | 2011   |          |   | 2010   |   |
|--------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                            |   |   |          |   |   |   |
| Net income                                                                                       |   | $      | 454,989       |   |   | $      | 8,038 |   |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |   |   |          |   |   |   |   |   |
| Depreciation and amortization expense                                                            |   |   | 135,879       |   |   |   | 527,834 |   |
| Allowance for doubtful accounts                                                                  |   |   | 656           |   |   |   | (765 | ) |
| Deferred income taxes                                                                            |   |   | (267,190      | )      |   |   | (138,345 | ) |
| (Increase) decrease in:                                                                          |   |   |          |   |   |   |   |   |
| Accounts receivable                                                                              |   |   | (11,973       | )      |   |   | 44,794 |   |
| Prepaid expenses                                                                                 |   |   | (18,789       | )      |   |   | (42 | ) |
| Other assets                                                                                     |   |   | (1,500        | )      |   |   | - |   |
| Increase (decrease) in:                                                                          |   |   |          |   |   |   |   |   |
| Accounts payable                                                                                 |   |   | (15,565       | )      |   |   | (82,636 | ) |
| Accrued expenses                                                                                 |   |   | 5,772         |   |   |   | 17,937 |   |
| Deferred revenue                                                                                 |   |   | (5,903        | )      |   |   | (78,326 | ) |
| Accrued income taxes                                                                             |   |   | (110,312      | )      |   |   | (374,000 | ) |
|                                                                                             |   |   |          |   |   |   |   |   |
| Net cash provided by (used in) operating activities                                              |   |   | 166,064       |   |   |   |  (75,511 | ) |
|                                                                                             |   |   |          |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                            |   |   |          |   |   |   |   |   |
| Other assets held for resale                                                                     |   |   | 2             |   |   |   | 1,643 |   |
| Purchase of property and equipment                                                               |   |   | -             |   |   |   | - |   |
| Purchase of real estate held for investment                                                      |   |   | (862,970      | )      |   |   | - |   |
| Purchase of non-compete                                                                          |   |   | (1,000        | )      |   |   | - |   |
| Purchase of customer list                                                                        |   |   |  (64,000 | )      |   |   | - |   |
|                                                                                             |   |   |          |   |   |   |   |   |
| Net cash provided by (used in) investing activities                                              |   |   | (927,968      | )      |   |   |  1,643 |   |
|                                                                                             |   |   |          |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                            |   |   |          |   |   |   |   |   |
| Repayment of notes payable – stockholders                                                  |   |   | (49,460       | )      |   |   | (122,315 | ) |
| Purchase of treasury stock                                                                       |   |   | (1,770        | )      |   |   | (35,398 | ) |
| Proceeds from notes payable - stockholders                                                       |   |   | 89,920        |   |   |   | - |   |
|                                                                                             |   |   |          |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                              |   |   | 38,690        |   |   |   | (157,713 | ) |
|                                                                                             |   |   |          |   |   |   |   |   |
|    NET (DECREASE) IN CASH AND CASH  EQUIVALENTS                         |   |   | (723,214      | )      |   |   | (231,581 | ) |
|                                                                                             |   |   |          |   |   |   |   |   |
|    CASH AND CASH EQUIVALENTS – BEGINNING OF  PERIOD               |   |   | 939,328       |   |   |   | 1,090,807 |   |
|                                                                                             |   |   |          |   |   |   |   |   |
|    CASH AND CASH EQUIVALENTS – END OF  PERIOD                     |   | $      | 216,114       |   |   | $      | 859,226 |   |

----

----

|                                        |   | 2011   |       |   | 2010   |   |
|---------------------------------------------|--------|--------|------------|--------|--------|--------|
| Net income available to common shareholders |   | $      | 454,989    |   |   | $      | 8,038 |   |
| Weighted average number of common shares    |   |   | 74,691,038 |   |   |   | 75,319,705 |   |
| Basic and diluted income per share          |   | $      | 0.01       |   |   | $      | 0.00 |   |

----

|                            |   | Corporate |      |   | Internet |   |      | Consolidated |   |
|---------------------------------|--------|-----------|-----------|--------|----------|--------|-----------|--------------|--------|
| Revenue                         |   | $         | -         |   |     | $      | 1,048,615 |         |   | $ | 1,048,615 |   |
| Operating Income (loss)         |   | $         | (33,115   | )      |     | $      | 211,304   |         |   | $ | 178,189 |   |
| Depreciation and amortization   |   | $         | -         |   |     | $      | 135,879   |         |   | $ | 135,879 |   |
| Interest expense                |   | $         | -         |   |     | $      | 864       |         |   | $ | 864 |   |
| Real estate held for investment |   | $         | 1,378,172 |   |     | $      | -         |         |   | $ | 1,378,172 |   |
| Intangible assets               |   | $         | -         |   |     | $      | 1,548,898 |         |   | $ | 1,548,898 |   |
| Total assets                    |   | $         | 1,378,172 |   |     | $      | 3,366,959 |         |   | $ | 4,745,131 |   |

----

|                            |   | Corporate |   |   | Internet |   |      | Consolidated |   |
|---------------------------------|--------|-----------|--------|--------|----------|--------|-----------|--------------|--------|
| Revenue                         |   | $         | -      |   |     | $      | 1,462,009 |         |   | $ | 1,462,009 |   |
| Operating Income                |   | $         | (3,084 | )      |     | $      | 29,044    |         |   | $ | 25,960 |   |
| Depreciation and amortization   |   | $         | -      |   |     | $      | 527,834   |         |   | $ | 527,834 |   |
| Interest expense                |   | $         | -      |   |     | $      | 11,490    |         |   | $ | 11,490 |   |
| Real estate held for investment |   | $         | -      |   |     | $      | -         |         |   | $ | - |   |
| Intangible assets               |   | $         | -      |   |     | $      | 2,931,678 |         |   | $ | 2,931,678 |   |
| Total assets                    |   | $         | -      |   |     | $      | 5,639,134 |         |   | $ | 5,639,134 |   |

----

----

----

| Equipment                                                            |   | $      | -      |   |
|----------------------------------------------------------------------|--------|--------|--------|--------|
| Customer list           |   |   | 21,520 |   |
| Non-compete agreement                                                |   |   | 1,000  |   |
| Deferred revenue                                                     |   |   | (5,500 | )      |
| Purchase price                                                       |   | $      | 17,020 |   |

----

| Equipment                                                            |   | $      | -       |   |
|----------------------------------------------------------------------|--------|--------|---------|--------|
| Customer list           |   |   | 97,000  |   |
| Non-compete agreement                                                |   |   | 1,000   |   |
| Deferred revenue                                                     |   |   | (10,000 | )      |
| Purchase price                                                       |   | $      | 88,000  |   |

|                                         |   | 2011 |              |
|----------------------------------------------|--------|------|-------------------|
| Net sales                                    |   | $    | 1,062,615         |   |
| Gross profit                                 |   | $    | 564,396           |   |
| Selling, general and administrative expenses |   | $    | 383,144           |   |
| Net income                                   |   | $    | 458,052           |   |
| Basic income per share                       |   | $    |    0.01 |   |

----

|                       |   | 2011   |     |   | 2010   |   |
|----------------------------|--------|--------|----------|--------|--------|--------|
| Current provision:         |   |   |     |   |   |   |
|   Federal        |   | $      | (8,131   | )      |   | $      | 125,735 |   |
|   State          |   |   | (1,435   | )      |   |   | 22,188 |   |
| Deferred provision:        |   |   |     |   |   |   |   |   |
|   Federal        |   |   | (227,112 | )      |   |   | (117,593 | ) |
|   State          |   |   | (40,078  | )      |   |   | (20,752 | ) |
| Total income tax provision |   | $      | (276,756 | )      |   | $      | (9,578 | ) |

|                                                                                                                           |   |  2011 |       |   |  2010 |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|------------|------------|--------|------------|--------|
| Accounts receivable                                                                                                            |   | $          | 6,089      |   |       | $      | 5,420 |   |
| Amortization of Intangible assets                                                                                              |   |       | 3,576,554  |   |       |   | 3,446,206 |   |
| Less valuation allowance                                                                                                       |   |       | (2,552,420 | )      |       |   | (2,552,420 | ) |
| Deferred tax asset                   |   | $          | 1,030,223  |   |       | $      | 899,206 |   |

----

|                                                             |   | 2011   |     |   | 2010   |   |
|------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Non-interest bearing amount due on acquisition of USA Telephone. |   | $      | 900,615  |   |   | $      | 900,615 |   |
|                                                             |   |   |     |   |   |   |   |   |
| Non-interest bearing amount due on acquisition of NCISP          |   |   | 33,000   |   |   |   | - |   |
|                                                             |   |   |     |   |   |   |   |   |
| Totals                                                           |   |   | 933,615  |   |   |   | 900,615 |   |
| Less current portion                                             |   |   | (933,615 | )      |   |   | (900,615 | ) |
| Long-term portion                                                |   | $      | -        |   |   | $      | - |   |

----

| Twelve months ending March 31, 2012            |   | $      |      933,615                                                             |   |
|------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------|--------|
| Twelve months ending  March 31, 2013 |   |   |      -                                                                   |   |
| Twelve months ending  March 31, 2014 |   |   |      -                                                                   |   |
| Twelve months ending  March 31, 2015 |   |   |      -                                                                   |   |
| Twelve months ending  March 31, 2016 |   |   |                 - |   |
| Thereafter                                     |   |   |                 - |   |
| Total                                          |   | $      |   933,615                                                                               |   |

|                                                                                                                                                                                                                          |   | 2011   |   |   | 2010   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Note payable to officer and stockholder on a line of credit of $750,000 at an annual interest rate of 10% interest.  The accrued interest and principal are due on January 1, 2014.        |   | $      | 89,920 |   |   | $      | 49,460 |   |
|                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Totals                                                                                                                                                                                                                        |   |   | 89,920 |   |   |   | 49,460 |   |
| Less current portion                                                                                                                                                                                                          |   |   | -      |   |   |   | - |   |
| Long-term portion                                                                                                                                                                                                             |   | $      | 89,920 |   |   | $      | 49,460 |   |

| Year ending March 31, 2012 |   | $      | -      |   |
|----------------------------|--------|--------|--------|--------|
| Year ending March 31, 2013 |   |   | -      |   |
| Year ending March 31, 2014 |   |   | 89,920 |   |
| Year ending March 31, 2015 |   |   | -      |   |
| Year ending March 31, 2016 |   |   | -      |   |
| Total                      |   | $      | 89,920 |   |

----

| ● | Internet access services; |
|---------|---------------------------|

| ● | Web acceleration services; |
|---------|---------------------------------|

| ● | Web hosting services; |
|---------|-----------------------|

| ● | End-to-end e-commerce solutions; and |
|---------|--------------------------------------|

| ● | Toner and ink cartridge remanufacturing services. |
|---------|---------------------------------------------------|

----

|                               |   | For the three months ended March 31, 2011 |    |
|------------------------------------|--------|-------------------------------------------|---------|
|                               |   | Corporate                                 |    |   | Internet |   |   | Total |   |
| Revenue                            |   | $                                         | -       |   |   | $ | 1,048,615 |   |   | $ | 1,048,615 |   |
| Cost of revenue                    |   |                                      |  - |   |   |   | 491,485 |   |   |   | 491,485 |   |
|                               |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Gross profit                       |   |                                      | -       |   |   |   | 557,130 |   |   |   | 557,130 |   |
|                               |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Operating expenses                 |   |                                      | 33,115  |   |   |   | 345,826 |   |   |   | 378,941 |   |
|                               |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations |   |                                      | (33,115 | ) |   |   | 211,304 |   |   |   | 178,189 |   |
| Other income (expense)             |   |                                      | -       |   |   |   | 44 |   |   |   | 44 |   |
|                               |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes  |   |                                      | (33,115 | ) |   |   | 211,348 |   |   |   | 178,233 |   |
| Income taxes (expense) benefit     |   |                                      | -       |   |   |   | 276,756 |   |   |   | 276,756 |   |
|                               |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Net income (loss)                  |   | $                                         | (33,115 | ) |   | $ | 488,104 |   |   | $ | 454,989 |   |

----

|                               |   | For the three months ended March 31, 2010 |    |
|------------------------------------|--------|-------------------------------------------|---------|
|                               |   | Corporate                                 |    |   | Internet |   |   | Total |   |
| Revenue                            |   | $                                         | -       |   |   | $ | 1,462,009 |   |   | $ | 1,462,009 |   |
| Cost of revenue                    |   |                                      |  - |   |   |   | 657,729 |   |   |   | 657,729 |   |
|                               |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Gross profit                       |   |                                      | -       |   |   |   | 804,280 |   |   |   | 804,280 |   |
|                               |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Operating expenses                 |   |                                      | 3,084   |   |   |   | 775,236 |   |   |   | 778,320 |   |
|                               |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations |   |                                      | (3,084  | ) |   |   | 29,044 |   |   |   | 25,960 |   |
| Other income (expense)             |   |                                      | -       |   |   |   | (27,500 | ) |   |   | (27,500 | ) |
|                               |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes  |   |                                      | (3,084  | ) |   |   | 1,544 |   |   |   | (1,540 | ) |
| Income taxes (expense) benefit     |   |                                      | -       |   |   |   | 9,578 |   |   |   | 9,578 |   |
|                               |   |                                      |    |   |   |   |   |   |   |   |   |   |
| Net income (loss)                  |   | $                                         | (3,084  | ) |   | $ | 11,122 |   |   | $ | 8,038 |   |

----

|     |   | Corporate |    |   | Internet |   |     | Total  |   |
|--------------------|--------|-----------|---------|--------|----------|--------|----------|--------|--------|
| EBITDA             |   | $         | (33,115 | )      |     | $      | 348,091  |   |   | $ | 314,976 |   |
| Interest expense   |   |      | -       |   |     |   | (864     | )      |   |   | (864 | ) |
| Taxes              |   |      | -       |   |     |   | 276,756  |   |   |   | 276,756 |   |
| Depreciation       |   |      | -       |   |     |   | (2,921   | )      |   |   | (2,921 | ) |
| Amortization       |   |      | -       |   |     |   | (132,958 | )      |   |   | (132,958 | ) |
|               |   |      |    |   |     |   |     |   |   |   |   |   |
| Net income (loss)  |   | $         | (33,115 | )      |     | $      | 488,104  |   |   | $ | 454,989 |   |

|              |   | Corporate |   |   | Internet |   |     | Total  |   |
|-------------------|--------|-----------|--------|--------|----------|--------|----------|--------|--------|
| EBITDA            |   | $         | (3,084 | )      |     | $      | 540,868  |   |   | $ | 537,784 |   |
| Interest expense  |   |      | -      |   |     |   | (11,490  | )      |   |   | (11,490 | ) |
| Taxes             |   |      | -      |   |     |   | 9,578    |   |   |   | 9,578 |   |
| Depreciation      |   |      | -      |   |     |   | (3,967   | )      |   |   | (3,967 | ) |
| Amortization      |   |      | -      |   |     |   | (523,867 | )      |   |   | (523,867 | ) |
|              |   |      |   |   |     |   |     |   |   |   |   |   |
| Net income (loss) |   | $         | (3,084 | )      |     | $      | 11,122   |   |   | $ | 8,038 |   |

----

----

|                                            |   |  2011 |           |   | 2010   |   |
|-------------------------------------------------|--------|------------|----------------|--------|--------|--------|
| EBITDA for the three months ended March 31,     |   | $          | 314,976        |   |   | $      | 537,784 |   |
| Interest expense                                |   |       | (864           | )      |   |   | (11,490 | ) |
| Taxes                                           |   |       | 276,756        |   |   |   | 9,578 |   |
| Depreciation                                    |   |       | (2,921         | )      |   |   | (3,967 | ) |
| Amortization                                    |   |       |  (132,958 | )      |   |   | (523,867 | ) |
| Net income for the three months ended March 31, |   | $          | 454,989        |   |   | $      | 8,038 |   |

|       |   | 2011   |         |   | 2010   |   |
|------------|--------|--------|--------------|--------|--------|--------|
| Current    |   | $      | 46,652       |   |   |   | 54 | % |   | $ | 38,037 |   |   |   | 51 | % |
| 30 < 60 |   |   | 18,517       |   |   |   | 22 | % |   |   | 22,550 |   |   |   | 30 | % |
| 60 +       |   |   |  20,817 |   |   |   | 24 | % |   |   | 14,082 |   |   |   | 19 | % |
| Total      |   | $      | 85,986       |   |   |   | 100 | % |   | $ | 74,669 |   |   |   | 100 | % |

----

----

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| 31.1   |   | Certification of President Pursuant to the Securities Exchange Act of 1934, Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.               |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                     |
| 31.2   |   | Certification of Chief Financial Officer Pursuant to the Securities Exchange Act of 1934, Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|   |   |                                                                                                                                                                                     |
| 32     |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                   |

----

|               | SITESTAR CORPORATION |                                                                                              |
|--------------------|----------------------|---------------------------------------------------------------------------------------------------|
|               |                 |                                                                                              |   |
| Date: May 13, 2011 | By:                  | /s/ Frank Erhartic, Jr.                                                                           |   |
|               |                 | Frank Erhartic, Jr.                                                                               |   |
|               |                 | President, Chief Executive Officer (Principal Executive Officer and Principal Accounting Officer) |   |

| Date: May 13, 2011 | By:    | /s/ Daniel A. Judd.                                   |   |
|--------------------|--------|-------------------------------------------------------|--------|
|               |   | Daniel A. Judd                                        |   |
|               |   | Chief Financial Officer (Principal Financial Officer) |   |
|               |   |                                                  |   |

----