Major Automotive to Purchase L.I. NY Daewoo Dealership

    KEW GARDENS, N.Y.--Feb. 1, 2001--

   Acquisition Will Mark the Company's First Daewoo Dealership And
                    Seventh Hempstead Acquisition

        Major Continues To Strengthen Its Long Island Presence

    Fidelity Holdings, Inc. , today announced that it has agreed to purchase, via its Major Automotive division, the Daewoo factory dealership based in Hempstead, New York from Daewoo Motor America, Inc. The acquisition would be the company's seventh dealership acquisition in Hempstead New York and will mark its first Daewoo dealership.
    The dealership, to be renamed Major Daewoo of Hempstead, is located on North Franklin Street, along with the Company's other dealerships, one of the busiest auto strips in Nassau County, New York. Terms were not disclosed.
    Bruce Bendell, Chairman and Chief Executive Officer of Fidelity Holdings and President of Major Automotive Group, stated, "With this Daewoo dealership purchase, Major will be the largest franchised dealership group in Nassau County, Long Island. Additionally, our increased penetration of the Long Island market helps to solidify the Major brand name throughout the New York/New Jersey metropolitan area."
    "We are quite pleased with the success of our strategic plan to acquire key dealerships in our target market and cluster such acquisitions around a Major World used car operation," stated James Wallick, President and Chief Operating Officer of Fidelity Holdings. "The growing number of Major dealerships allows Major World to continually increase its used car sales, strengthening our position achieved as number one nationwide in used car sales dollars as a percentage of overall sales, as rated by industry opinion leader Ward's Dealer Business, as well as attract more consumers to all our dealerships."
    Fidelity Holdings' Automotive Division operates through Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan area. Fidelity Holdings, Inc. has announced its intention to divest its non-automotive activities by way of sale, merger, consolidation or other opportunities, and has announced that it plans to change its name to The Major Automotive Companies, Inc.
    For additional information, visit the Company's websites at www.fdhg.com, www.majorautomotive.com and www.majorworld.com.
    The information contained in this press release, including any "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company's annual report on Form 10-KSB and other publicly available information regarding the Company, copies of which are available from the Company upon request. Such publicly available information sets forth many risks and uncertainties related to the Company's business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the Company.