Fidelity Holdings Concludes Agreement for Sale of IG2 Subsidiary to Global Communications of New York, Inc.

    KEW GARDENS, N.Y.--March 28, 2001--

Management Buy-Out Led By Kimberly Peacock, formerly IG2's Vice-Chair

    Fidelity Holdings, Inc. today announced it has sold its majority interest in its IG2, Inc. telecommunications subsidiary to Global Communications of New York, Inc., which is led by IG2's Vice-Chair, Kimberly Peacock. Terms were not disclosed.
    Bruce Bendell, Chairman and Chief Executive Officer of Fidelity Holdings, stated "We are pleased that we have successfully concluded the sale of the IG2, Inc. portion of our telecommunications division. This sale continues our strategy of divesting our non-automotive related operations in a manner that we believe will most benefit our shareholders. As we stated in January, the divestitures of our technology division will help us to focus solely on our growing Major Automotive operations. This is an important milestone along our plan to have Major Automotive become the dominant dealership group in the New York metropolitan area."
    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.
    For additional information, visit the Company's website at www.fdhg.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 and 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.