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Fidelity Holdings Completes Acquisition of Internet/DSL Company

17 February 2000

Fidelity Holdings Completes Acquisition of Virginia-based Internet/DSL Company; Richmond, Va. Company To Serve as Test Site for Planned IG2 Network

    NEW YORK--Feb. 17, 2000--Fidelity Holdings, Inc. today announced that it has completed the acquisition of regional full service Internet Service Provider (ISP) and DSL provider CarsTV.com, Inc. (the "Company"), as well as a content supplier for the cable industry focused on the automotive sector. Based in Richmond, Virginia, Internet Connections and CarsTV, two subsidiaries of the Company represent its Internet division and cable divisions, respectively. Terms were not disclosed.
    Internet Connections (www.internetconnections.com), operating regionally throughout the Mid Atlantic, provides a full range of Internet services from dial-up through DS-3, collocation services, web design and development, and e-commerce solutions to individuals and small-to-medium sized businesses. In support of the Internet operations, Internet Connections provides application hosting services to enhance business-to-business services. As a Citrix Gold Reseller, Internet Connections offers value added services and efficient communication capabilities for intra-company data transfer.
    "We believe that many benefits can be obtained from this acquisition," said Doron Cohen, Chief Executive Officer of Fidelity Holdings. "As one of the area's largest DSL service resellers to small and medium size businesses, Internet Connections is strategically placed to assist in the anticipated rollout of our planned IG2(TM) DSL product line. IG2 has selected Forest Hills, NY and Richmond, VA as test roll out sites for the designed IG2 Network. The Company can provide our IG2, Inc. communications subsidiary the opportunity to accumulate local multimedia content for the planned network that IG2 intends to roll out in 2000, and we expect to assist the Company in expanding from a Virginia to a regional and national presence. The Company's automotive Internet experience will also be used to enhance the Major Automotive web presence and television promotions. Finally, Internet Connections' small and medium business customer is also a prime market to utilize the new Talkie(R) Browse N Talk(TM)."
    Jack Singer, President of Internet Connections stated, "We are excited that IG2 has chosen to utilize our presence and staff in moving closer to full implementation of the IG2 Network. We believe that Richmond, with our customer base, will prove a solid test site for the Network. It will provide us the opportunity to tie in our TV and DSL experience with the plans of IG2 and Talkie to roll out a successful future for our Company in the Internet arena. As a forward-looking ISP, we believe that the growth of dial up service for Internet is limited and the future is DSL."
    Kimberly Peacock, CEO of IG2 stated, "We believe having Internet Connections join us is an important step in the planned deployment of our network. Having two cities in the test can give us the experience that we need to complete the rollout once tests have been concluded. The Company will give us immediate access to content from internal sources and via the relationships they have established with the cable industry."
    Fidelity Holdings is a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. Fidelity Holdings 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, its CarsTV.com, Inc. subsidiary and its plastics subsidiary.
    For additional information, visit our website at www.fdhg.com, www.majorautomotive.com, www.majorworld.com, www.carstv.com and www.internetconnections.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.