Fidelity Holdings to Effect 1-for-5 Reverse Stock Split

    KEW GARDENS, N.Y.--April 2, 2001--Fidelity Holdings, Inc. today announced that in furtherance of its determination to maintain its Nasdaq National Market listing, the Board of Directors and persons holding a majority of the issued and outstanding shares of the Company's Common Stock have approved a 1-for-5 reverse split of its common stock.
    Under the stock split, which is expected to become effective on or about April 30, 2001, stockholders will receive one new share of Fidelity's stock for each five old shares they currently hold.
    One of the key requirements for continued listing on the Nasdaq Market is that the Company's Common Stock must maintain a minimum bid price above $1.00 per share. The Company believes, although there can be no assurance, that the reverse split will improve the price level of its common stock so that it will be able to maintain compliance with the Nasdaq listing standards. Furthermore, the Company believes that maintaining the Nasdaq Market listing may provide it with a broader market for its Common Stock and facilitate the use of the Common Stock in acquisitions and financing transactions in which the Company may engage. Fidelity Holdings' operates through Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan area. Fidelity Holdings, Inc. is continuing to divest its remaining 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.