For the $$$ it is fine, however what exactly do you mean by a webhosting site? Are you simply speaking of a website for your own use or as a reseller offering webhosting?
If for your own purposes, then it is along the "giveaway" pricing that's out there right now.
How long has this company been in business? You may want to do a search on the forum by their name and see if there is any negative feedback on there about them. You may also want to check the whois to see how long they have been up (this doesn't indicate how long they have been in business exactly, but will at least show some particulars as well as how long the domain has been registered).