The Major Automotive Companies Announces Settlement of Class Action Lawsuit

    LONG ISLAND CITY, N.Y.--March 11, 2003--The Major Automotive Companies, Inc. (Nasdaq SC: MAJR - news) today announced that the settlement of a class action against the Company and several of its current and/or prior directors and/or officers, captioned In re Fidelity Holdings, Inc. Securities Litigation, has been approved by the United States District Court Eastern District of New York.
    Accordingly, the settlement fund will be fully funded with payment of $4,450,000 from the Company's insurance carrier and such funds will be distributed, after payment of legal and administrative expenses, to claimants who have not validly excluded themselves and who submit valid claims. There will be no further costs to the Company in connection with this action and all prior costs have been reflected in the Company's previously issued financial statements.
    The District Court, in approving the settlement, found it to be "fair, reasonable and adequate." The Company entered into the settlement agreement solely for the purpose of settling this litigation. The Notice of Pendency previously sent to potentially eligible claimants, stated that neither the Company nor any of its directors or officers have admitted any liability or wrongdoing.
    All persons, other than officers and directors of The Major Automotive Companies, Inc. (formerly known as Fidelity Holdings, Inc.) and their families and affiliates, who acquired shares of Fidelity Holdings, Inc. between June 24, 1999 and April 17, 2000, who have not validly excluded themselves, are included in the class eligible to receive compensation from the settlement fund. All such persons should have previously received a complete description of the proposed settlement and a claim form. Such documents may be obtained from the claims administrator, at: Fidelity Holdings Security Litigation, c/o The Garden City Group, P.O. Box 9000 #6051, Merrick, New York 11566-9000.

For additional information, visit the Company's website at http://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 and Exchange Act of 1934 contained herein, should be reviewed in conjunction with the Company's annual report on Form 10-K 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.