3 Auto Franchises Acquired by Fidelity Holdings' Major Auto Subsidiary
29 March 2000
Three New Auto Franchises Acquired by Fidelity Holdings' Major Automotive Subsidiary; Major Automotive To Purchase B&L Auto Group - Toyota, Subaru And Kia
KEW GARDENS, N.Y.--March 29, 2000--Fidelity Holdings, Inc. (NASDAQ NM: FDHG), today announced that the Company has agreed to acquire, via its Major Automotive division, Bronx, New York-based B&L Auto Group, subject to factory approval. B&L Auto Group operates three dealerships consisting of Toyota, Subaru and Kia. The acquisition, which marks Major Automotive's initial foray into the Bronx, New York market as well as its first Toyota dealership, continues the Company's geographic expansion plans in the New York/New Jersey Metropolitan region.Commenting on the development, Bruce Bendell, Chairman of Fidelity Holdings and President of Major Automotive Group, stated, "The anticipated acquisition of B&L Auto Group accomplishes two key initiatives for Major Automotive. First, it enables the Company to enter the Bronx, New York market and continue its geographic expansion objectives. Additionally, we are pleased to note that the acquisition enhances our brand diversity as it provides Major with its first Toyota dealership, as well as its second Subaru and Kia dealerships."
James R. Wallick, COO of Fidelity Holdings, said, "The proposed acquisition of B&L, which has been established for over a quarter century, represents another step in the execution of Major's strategic business plan to solidify its position as one of the leading automotive groups in the New York/New Jersey Metropolitan region. As we add dealerships and franchises to the Major World family, we are confident we can expand our acquisition options by offering dealers attractive alternatives and the ability to increase profits by joining one of the fastest growing automotive groups in the New York/New Jersey Metropolitan area."
Martin Ligorner, President of B&L Auto Group, noted, "We are quite pleased to become part of the Major Automotive family, one of the most recognizable names in the automotive industry in the Metropolitan region."
Robert Inserillo, Vice President of B&L, noted, "This association will enable us to take advantage of the strength, reputation and marketing prowess that Major can offer as well as its Major World used car operations. In addition, we will now be able to enhance our ability to finance more customers using a variety of lending institutions. We are confident this agreement represents a tremendous opportunity for Major Automotive, B&L Auto Group and, importantly, current and future customers."
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 primarily through Computer Business Sciences, its IG2, Inc. subsidiary, its Info Systems, Inc. subsidiary and its CarsTV.com, Inc. subsidiary.
For additional information, visit our websites 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.