Fidelity Holdings' CEO Expands Upon Lucent Strategic Agreement
13 April 2000
Fidelity Holdings' CEO Expands Upon Lucent Strategic Agreement
NEW YORK--April 13, 2000--Financing to Deploy Planned IG2(R) Network
Fidelity Holdings, Inc. (NASDAQ:FDHG), which announced today a Strategic Agreement reached between its communications subsidiary, IG2, Inc. ("IG2") and Lucent Technologies ("Lucent") (NYSE:LU), issued a statement clarifying certain terms of the arrangement.
Under the three-year agreement with an expected value of up to $400 million, IG2 will purchase Lucent's portfolio of industry-leading products and services to construct an Internet Protocol (IP) backbone capable of delivering video, voice, and data services.
"We have exerted great efforts over the past several months to bring this deal to fruition," said Doron Cohen, President and Chief Executive Officer of Fidelity Holdings, "With the result that Lucent has agreed to arrange up to $400 million in financing, necessary to design, construct and support IG2's planned end-to-end, nationwide network, the IG2(R) Network. We are gratified to have a company as prominent as Lucent recognize the achievements and potential of our growing company. With this arrangement, we expect our proposed Network to have the necessary partners to launch our project successfully, delivering local and long distance telephony, high speed Internet and video services through the customer's existing telephone line."
About Fidelity Holdings/IG2
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 -- Technology and Automotive. The Technology Division operates primarily through Computer Business Sciences, its IG2, Inc. subsidiary, its Info Systems, Inc. subsidiary and its CarsTV.com, Inc. subsidiary. The Automotive Division operates through Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan Area.
The IG2(R) Network is designed to provide a bundled package to residential and small business customers of high-speed Internet access, local and long distance telephone service, television programming, television quality video conferencing and e-Commerce capabilities, all through existing telephone wires already installed in the customer's home. Contributing to the IG2 platform are a series of consumer electronic manufacturers, software developers and companies seeking additional exposure utilizing e-Commerce.
For additional information, visit our websites at www.fdhg.com and www.ig2.com.
About Lucent Technologies:
Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers the systems, software, silicon and services for next-generation communications networks for service providers and enterprises. Backed by the research and development of Bell Labs, Lucent focuses on high-growth areas such as optical and wireless networks; Internet infrastructure; communications software; communications semiconductors and optoelectronics; Web-based enterprise solutions that link private and public networks; and professional network design and consulting services. For more information on Lucent Technologies, visit its Web site at http://www.lucent.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 Fidelity Holdings and Subsidiaries' ("the Company") Annual Reports 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.