Fidelity Holding's Major Automotive Subsidiary Breaks Its Sales Record

8 July 1999

Fidelity Holding's Major Automotive Subsidiary Breaks Its Used Car Sales Record; Exceeding 500 Cars Per Month in Long Island City Operation

    KEW GARDENS, N.Y.--July 7, 1999--Fidelity Holdings, Inc. today announced that the Company's subsidiary, Major Automotive Group, has reached a new record in used car sales, exceeding 500 cars sold in the month of June in its Long Island City operation.
    Bruce Bendell, Chairman of Fidelity, stated: "Major Automotive's accelerated used car sales are a result of an effective, efficient and growing infrastructure, advertising campaign, and recognition as a regional leader in the automotive industry. We believe that this momentum will continue as Major pursues its aggressive acquisition strategy and exploits its prime Long Island City location."
    Mr. Bendell continued: "Our growing used car revenues, a testament to our efforts at surpassing record sales, aggressively drive our judicious acquisitions strategy. While we are selective in our acquisitions approach, we are not limited in terms of location, franchise, or prior performance in our consideration of potential targets. We feel confident that dealerships we acquire will be able to capitalize on synergies and resources from which we already have begun to benefit."
    "We are very enthused with the increased sales volume of used cars in our Long Island City operation. Not only does it demonstrate the increased awareness of Major's advertising prowess and satisfaction guarantee, it is also the sector of the automotive dealership business yielding the highest return," concluded Richard L. Feinstein, Chief Financial Officer of Fidelity.
    Fidelity Holdings has been a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. The Company has operated 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 IG2, Inc. subsidiaries, 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 the financial statements.
    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-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.