Major Automotive, Completes Acquisition of Compass Lincoln Mercury

13 September 1999

Fidelity Holdings Auto Division, Major Automotive, Completes Acquisition of New Jersey-based Compass Lincoln Mercury - Major World Brand Expands to New Jersey

    KEW GARDENS, N.Y.--Sept. 13, 1999--Fidelity Holdings, Inc. today announced that in conjunction with its wholly owned subsidiary Major Acquisition of New Jersey, the Company consummated the acquisition of Essex County, New Jersey-based Compass Lincoln-Mercury. The acquisition represents the Company's entry into the New Jersey market, signaling another milestone in its regional acquisition strategy and creating a hub for expanded activity in the New Jersey area.
    "The acquisition of Compass Lincoln-Mercury firmly establishes Major Automotive in an area it has targeted to further its regional acquisition plan," said Bruce Bendell, Chairman and CEO of Fidelity. "The Essex County location represents a prime target for Major Automotive wherein the Company can provide Compass with tremendous advantages and opportunities in a market Major knows well, the New York tri-state area. We expect to expand our used cars operation to New Jersey, to implement our program that has proved so successful in New York, setting new records for sales."
    Mr. Bendell continued, "One of the most attractive aspects of this transaction is the element of a relationship with Ford Motor Company, which affords Major the ability to offer new vehicles from each of the "Big Three" U.S. manufacturers. Also, the opportunity to have inventory financing from Ford Motor Credit opens other exciting avenues to us."
    Arthur and Scott Picon, President and Vice President of Compass Lincoln-Mercury for the past twenty-five years, stated, "We are excited to be part of the Major Automotive Group for obvious reasons; combined knowledge, advertising strategy, experience, capital resources and market reach. We plan to make this first New Jersey merger a winner and take advantage of the used car sales opportunities in the State."
    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 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.