Fidelity Holdings To Acquire Internet Provider/Cable TV Operator CarsTV.com
12 January 2000
Fidelity Holdings To Acquire Internet Provider/Cable TV Operator CarsTV.com
NEW YORK--Jan. 12, 2000--Fidelity Holdings, Inc. today announced that it has agreed to acquire CarsTV.com, Inc. ("CarsTV"), a leading software development firm for the broadcast and automotive industries, as well as a regional Internet Service Provider.Based in Richmond, Virginia, CarsTV has two subsidiaries: Internet Connections and CarsTV. Details of the transaction will be provided upon Closing.
The CarsTV division (www.carstv.com) provides software that enables the easy assimilation and distribution of data in the database of an automotive dealer or real estate company to the local cable operator for content distribution. According to CarsTV, its products are seen daily in over 700,000 households in the Virginia area. The product allows an automotive company in real time to update its inventory and promote this inventory both on their website and local television. While only some of the households have access to the Internet, the CarsTV product gives the automotive company access to the households in its regional area with cable television or Internet. The customer is able to shop for vehicles or homes from the comfort of his own living room. The attraction of the CarsTV product to a cable operator is that there is no manual intervention necessary to obtain the data.
Internet Connections (www.internetconnections.com), operating regionally throughout the Mid-Atlantic, provides Internet services, web design and development, and wide area connectivity through arrangements with inter-exchange carriers. As one of the area's largest DSL service reseller, Internet Connections services also include application and web hosting, on-site maintenance services and software sales. As a Citrix Gold reseller, Internet Connections offers efficient transport solutions to its customers.
Jack Singer, President of CarsTV stated, "We are excited to be joining the Fidelity team. We believe in the synergies for our companies. The new Talkie(R) Browse N Talk(TM), which permits direct interaction between the customer and service over the Internet, will be an exciting feature to add to our system. The IG2(TM) Network platform, once operational, is expected to offer an ideal distribution vehicle for the enhanced services that we are providing today. The CarsTV product enables our customers to broaden the scope of their advertising efforts from just the Internet or just traditional television broadcast by taking advantage of their convergence."
Bruce Bendell, Chairman of Fidelity Holdings, commented: "Jack Singer has created an entity that is fascinating-the ability to bring the car into a home via television or Internet with immediate updates. Content, and the system that delivers it, are integral to each other's success. As we consider the future of our technology division, CarsTV and Mr. Singer will be an important part of the equation."
James Wallick, Chief Operating Officer of Fidelity, concluded: "We believe that the synergies between the companies will increase Major Automotive's sales abilities-groupwide. Browse N Talk(TM), CarsTV and the Internet are the winning combination that provide us with the tools to enhance our ability to pursue acquisition candidates."
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 through Computer Business Sciences, its IG2, Inc. subsidiary, its Info Systems, 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-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.