The "z" is a plural: "Sitez". Surely this meme, while old, can't be so old that only I remember it. Can it?
Meanwhile, let me introduce you to Google's website building business: http://sites.google.com
That's arguably in the same field of business -- enough to cause confusion in the marketplace, which is the legal standard -- and their URL is two characters away from the alleged infringing URL.
I guess this company could try to argue that Google is infringing their trademark... provided they launched before Google Sites, which came online under that name in 2008. Except, oops, the opponent is Google, a company whose legal team's lunch budget could probably buy and sell us all.
Run away!