Fidelity Holdings' Subsidiary IG2, Inc. Announces Strategic Initiative to Launch Broadband Based Portal to Enable Next Generation Services
23 August 1999
Fidelity Holdings' Subsidiary IG2, Inc. Announces Strategic Initiative to Launch Broadband Based Portal to Enable Next Generation Services
KEW GARDENS, N.Y.--Aug. 20, 1999--Fidelity Holdings, Inc. , via its technology subsidiary, IG2, Inc. is expecting to launch its service enabling live voice and video for customer services, e-services, education, and entertainment.IG2's portal is expected to provide real-time meetings where documents, presentations and applications can be shared with anyone on the Internet.
With this in mind, IG2 expects to promote a concept called the Virtual Office, which is intended to enable users to create a personal space to meet, schedule meetings, send and receive documents and help the user work together simultaneously with colleagues, customers and clients. The Virtual Office will be integrated with a Virtual Yellow Pages, the broadband directory service IG2 expects to offer.
"We are developing this service to integrate with the IG2 network. Our network, which we expect to bring online in the 62 most populous cities in the US within a year, is intended to enable consumers to receive broadband Internet access with television quality video and voice, over the same infrastructure that currently only delivers telephone service. We already have CLEC licenses in 36 of those markets. Most importantly, IG2 should be able to offer this at consumer price points. While we explore divestiture of IG2, we nonetheless contribute resources necessary to enhance its value, and are proud of its progress," said Doron Cohen, Chairman of IG2, Inc. and President of Fidelity.
The Honorable Jack Fields, former Chairman of the House Telecommunications Committee and chief architect of the Telecommunications Act of 1996, stated: "A few short years ago, the Internet was little more than a toy. Today, the Internet is affecting every business process. What IG2 is building is a platform to support the next evolution in e-commerce. When the 1996 Telecommunications Act was signed, it was anticipated that technology would quickly move to permit companies to offer advanced communication services such that IG2 will offer. This creates the ability for companies such as SBC, Ameritech, Bell Atlantic and TCI to further benefit consumers through their cable/DSL network rollouts. I believe IG2's service, when complete, will build on those companies' consumer broadband capacity."
Kimberly Peacock, Chief Executive Officer of IG2, Inc., explains the benefits of IG2: "We expect to provide the consumer with affordable broadband, with all the characteristics of a dedicated switched service that until now was affordable only to large companies. This network enables our service platform, the Virtual Office and the Virtual Yellow Pages. We do this to assist companies to outsource more efficiently and on demand. The benefit is clear: An employer would be able to pay more efficiently for labor services. When working simultaneously with contract staff elsewhere, the most appropriate person for the job is paid only for time spent on the project, without having to pay for ancillary costs such as travel and extra time. Only core employees are utilized on site, outsourcing all other functions for the most efficient price. This should translate to lower overhead, which should result in greater profit for the company."
Contributing to the IG2 platform are a series of consumer electronic manufacturers, software developers and companies seeking additional exposure utilizing e-Commerce.
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 its 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.
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.