Fidelity Holdings Clarifies Strategic Agreement With Lucent
14 April 2000
Fidelity Holdings Clarifies Strategic Agreement With Lucent; Lucent to Provide up to $400 Million in Financing and Equity for IG2, Inc.
NEW YORK--April 13, 2000. Fidelity Holdings, Inc. (NASDAQ:FDHG), today announced a Strategic Agreement reached between its communications subsidiary, IG2, Inc. ("IG2") and Lucent Technologies ("Lucent") (NYSE:LU). In anticipation of financing arranged by Lucent, 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. Lucent will also take an equity portion, the terms of which have not yet been disclosed, but will be disclosed at a later date."In order to build out a nationwide network, it is necessary for any company to obtain the right financing arrangement with the right strategic partner, one that is a leader in the industry, and we have that in Lucent," said Doron Cohen, President and CEO of Fidelity Holdings. "In recognition of our potential and existing achievements, in both arranging for the financing as well as in taking an equity stake in IG2, we believe Lucent has clearly demonstrated their confidence that our IG2 business is something special and an important strategic investment."
Mr. Cohen continued: "We regret the confusion created earlier today by news services' attempts at characterization of this deal. Steps are being undertaken to ensure that this does not recur in the future. Good news of this magnitude for Fidelity Holdings and IG2 can have a positive effect on our future prospects, and we appreciate the interest of the financial community."
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.
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.