Fidelity Holdings to Explore Divestiture of Non-automotive Activities
18 December 1998
Fidelity Holdings to Explore Divestiture of Non-automotive Activities; Doron Cohen Appointed President by Board of Directors
KEW GARDENS, N.Y.--December 18, 1998--Fidelity Holdings, Inc. today announced that it is exploring the possible divestiture of its non-automotive activities by way of sale, merger, consolidation or spin-off. Concurrently, the Board of Directors has appointed Doron Cohen President. Bruce Bendell will remain as Chief Executive Officer and Chairman of the Board.
The Board determined that to enhance shareholder value, it is prudent and appropriate to allow management of each of the automotive and non-automotive areas of Fidelity's business to focus solely on each of their respective areas of expertise. This resolution, additionally, provides the investment community the opportunity to focus separately on each business, allowing for appropriate valuations by market segment.
To accomplish this goal, the Board deemed it in the best interests of the Corporation to appoint Doron Cohen President of Fidelity Holdings, Inc. during this process. Mr. Cohen will conduct the due diligence requisite to consummate this type of transaction, explore potential candidates, respond to inquiries and allow Mr. Bendell to focus his efforts primarily on the automotive aspects of Fidelity's business model.
Bruce Bendell, Chairman of the Board, commented, "Doron Cohen assuming the role of President and the plans to divest the non-automotive assets of Fidelity, is crucial to our goal of providing long-term value to our shareholders. Also, the actions of the Board allows us to continue to pursue our aggressive acquisition strategy in the automotive sector."
"The Company's activities in technology, through its Computer Business Sciences (CBS) Division, and its automotive business should and must be evaluated and valued as separate entities, each with a distinct focus. It is with great pride that I accept this position that we contend will refocus and reposition the businesses of Fidelity," concluded Doron Cohen, President.
Fidelity Holdings, Inc. is a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. The Company operates two division
-- Automotive and Technology. The Automotive Division operates through Major Automotive Group, a leading consolidator of automobile dealerships in the New York Area. The Technology Division operates through Voice Processing and Computer Telephony Technology divisions.
For additional information, visit our website 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-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.