Fidelity Holdings' Board Votes to Retain its Technology Operations
7 February 2000
Fidelity Holdings' Board Votes to Retain its Technology Operations
KEW GARDENS, N.Y.--Feb. 7, 2000--Fidelity Holdings, Inc. today announced that the Board of Directors has determined to continue the development and operations of its Technology Division, which includes its Computer Business Sciences, Inc. ("CBS"), IG2, Inc. ("IG2") and InfoSystems, Inc. subsidiaries. Until recently Fidelity Holdings, while exploring the divestiture of its non-automotive activities, classified all such activities as discontinued operations in its financial statements for accounting purposes. The Company will amend its quarterly and annual report filings for 1999 shortly. The reclassified financial statements, however, will not affect or modify any reported prior net earnings, net earnings per share or shareholders' equity.
The Company also announced that Doron Cohen, President, has been named Chief Executive Officer of Fidelity Holdings. Bruce Bendell will remain Chairman of the Company.
"I am proud of IG2's accomplishments to date," said Bruce Bendell, Chairman of Fidelity Holdings. "Our Company has grown significantly through contributions from our dedicated staff and their technological breakthroughs. As we move forward, I am excited that we will continue our development, particularly, as we further integrate our technology into our Major Auto operations, as we have begun with Talkie(R) Browse N Talk(TM)."
Doron Cohen, Chief Executive Officer of Fidelity and Chairman of CBS and IG2 stated, "We have examined our technology operations during this year of extensive analysis, including meetings with investment bankers, industry analysts and participants, performing our own research, and exploring various divestiture alternatives. All the while, we continued our development of the IG2(TM) concept and network. Finally, after a comprehensive meeting with the head of our Technology Advisory Board, Hon. Jack Fields, we have shaped a technology strategy for the Company. The Board has concluded that the future of telecommunications lies in the areas that IG2 is developing and that our best course for maximizing shareholder value from our technology division is to continue to develop and roll out the network. We are now going full speed ahead in that direction."
Kimberly Peacock, Chief Executive Officer of IG2, stated, "This past year has been one of tremendous advances for IG2. The fact that we have achieved CLEC status in 56 of our planned 62 markets, the Company's Open Video System initiative and our extensive Interconnection agreements with Regional Bell Operating Companies are all very positive developments for IG2. Our contracts with Bell Atlantic, Paradyne and Realtech should be viewed as particularly significant, as they signal the establishment of the architecture of the planned IG2(TM) Network."
Hon. Jack Fields, former congressman from Texas and chief architect of the Telecommunications Act of 1996, concluded, "IG2 has crystallized the concept of convergence and the bundling of services for consumers. As such, I believe that the consumers of America will benefit from IG2's vision and the execution of its strategic plan."
Fidelity Holdings is 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, its IG2, Inc. subsidiary, its Info Systems, Inc. subsidiary and its plastics subsidiary.
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.