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Fidelity Holdings, Inc. Announces CLEC Approval in the State of Florida

19 April 1999

Fidelity Holdings, Inc.'s Computer Business Sciences Subsidiary Announces CLEC Approval in the State of Florida; Applications Filed and Pending Approval in 12 Other States

    KEW GARDENS, NY--April 19, 1999--Fidelity Holdings, Inc. through its technology subsidiary, Computer Business Sciences, Inc. ("CBS"), today announced approval of CLEC (Competitive Local Exchange Carrier) status in the state of Florida. In addition, CBS has twelve applications filed and pending approval by the Commissions of the states of Illinois, Massachusetts, New Jersey, Pennsylvania, Connecticut, District of Columbia, Texas, Georgia, Ohio, Arizona, Colorado, and Minnesota.
    CBS also has approved CLEC status in the states of New York and California and is preparing for collocation with the Regional Bell Operating Companies (RBOCs) in those states, beginning by deploying IG2, Inc.'s XDSL-based services in the New York Metropolitan Area in a collocation arrangement with Bell Atlantic .
    Should these applications be approved, CBS will be able to operate as a Facilities-Based Carrier of Telecommunications Services and Intrastate Interexchange Services in 16 states, which would enable its IG2, Inc. subsidiary to provide its XDSL services in those states.
    IG2, Inc.'s services are based on a multimedia network platform, IG2(TM), which is designed to provide to residential and small business customers high speed Internet access, eCommerce capabilities, local and long distance telephone service, television quality video conferencing and television programming, all through existing telephone wires already installed in the customer's home.
    "Achieving CLEC status in the State of Florida will open up IG2's market window considerably," stated Kimberly Peacock, President of IG2, Inc. "The accomplishment of filing in so many states moves CBS that much closer to achieving its ultimate goal of deploying its IG2(TM) services in the 62 most populous cities in the United States. We expect to be able to deploy our XDSL based services and offer flat rate long distance to XDSL subscribers beginning in the New York Metropolitan area and our goal is to have established CLEC status in more than 30 states by or before the end of 1999. We are well on our way."
    "One of our main objectives is to continue to position our technology division in line with our strategic plan. The CLEC status and twelve pending applications demonstrate that commitment as did the Company's extraordinary year-end results," concluded Doron Cohen, President of Fidelity.
    Upon approval as CLEC in the additional 12 states, CBS plans to establish itself as a competitive carrier of telecommunications services initially in 40 of the most populous cities in the United States, including New York, Rochester, Albany, Syracuse, Buffalo, Miami, Ft. Lauderdale, Tampa, Jacksonville, San Francisco, Los Angeles, Anaheim, Oakland, San Bernadino, San Diego, San Jose, Sacramento, Chicago, Boston, Springfield, Cincinnati, Cleveland, Columbus, Dayton, Toledo, Phoenix, Newark, Patterson, Hartford, Washington, D.C., Atlanta, Denver, Philadelphia, Pittsburgh, Allentown, Minneapolis, Houston, Dallas, Ft. Worth, and San Antonio.
    Contributing to the IG2(TM) platform are a series of collaborative strategic partnerships and alliances with consumer electronic manufacturers, software developers and companies seeking additional exposure utilizing e-Commerce.
    Companies operating in comparable areas are: Concentrix , Harvard Net (www.harvardnet.com), NetRhythms, UUNET (a division of MCI WorldCom) , Covad Communications and U.S. West . Cable companies including AT&T's "At Home" are also working towards a solution such as IG2 is expected to provide as the Internet expands into mass marketing.
    Fidelity Holdings has been a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. The Company operates two divisions - Automotive and Technology. The Automotive Division operates through Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan Area. The Technology Division operates under Computer Business Sciences and its newly formed IG2, Inc. subsidiary, and its plastics subsidiary.
    Fidelity Holdings, Inc. is presently exploring the divestiture of its non-automotive activities by way of sale, merger, consolidation or other opportunities. Accordingly, all such non-automotive activities have been classified as discontinued operations in its financial statements.
    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.