Fidelity Holdings' Major Automotive Subsidiary Completes Acquisition of Hempstead Mazda; Major Automotive Expands Operations To Long Island, New York

19 April 2000

Fidelity Holdings' Major Automotive Subsidiary Completes Acquisition of Hempstead Mazda; Major Automotive Expands Operations To Long Island, New York

    KEW GARDENS, N.Y.--April 19, 2000--Fidelity Holdings, Inc. (NASDAQ NM: FDHG), today announced that the Company's Major Automotive division has completed the acquisition of Hempstead Mazda based in Hempstead, New York, now operating as Mazda of Hempstead, a Major World Dealership. The acquisition, terms of which were not disclosed, signals Major's expansion into the Long Island, New York market as well as its first Mazda dealership. This announcement, together with the automotive division's nine existing franchises, as well as the Company's recent news that it had agreed to acquire, subject to factory approval, Bronx, New York-based B&L Auto Group, is part of the Company's strategic business plan to strengthen its position as a dominant auto dealership group in the NY/NJ Metropolitan area.
    Commenting on the announcement, Bruce Bendell, Chairman of Fidelity Holdings and President of Major Automotive Group, stated, "Fidelity Holdings has made major strides. Our strong fundamentals continue to drive our technology and automotive divisions. We are pleased to note our automotive subsidiary's continued successes as Major Auto continues to position itself for further growth and enhanced shareholder value, as evidenced by this acquisition of Hempstead Mazda. We believe that this transaction will provide a significant opportunity to increase our market reach in the New York metropolitan area."
    "Major will utilize Fidelity's technology to enhance sales at Mazda of Hempstead by connecting the dealership to the Internet and capturing a portion of the rapidly growing market for car sales over the net. We plan to expand our current relationships with Microsoft CarPoint and CUC Autovantage, among others, to help make Mazda of Hempstead one of the premier dealerships on Long Island."
    Mr. Bendell continued, "Focus on our fundamentals permits continued acquisitions in the automotive sector, as well as setting new records nearly every month and quarter in our Major World used car operations. We are proud to welcome Mazda of Hempstead to the Major Automotive family."
    James Wallick, Chief Operating Officer of Fidelity Holdings, noted, "Mazda of Hempstead represents not only an important new dealership, but the realization of a new franchise to our automotive division. We are pleased to note that this acquisition marks our entrance into the Long Island, New York market. Equally as important, we will operate on the hottest automotive strip in Nassau County and we believe that Major World will grow to be one of the largest used car dealerships on Long Island.
    As indicated by our recent financial results, as our acquisitions around the New York metropolitan area have increased, we have been able to leverage our growing power in new and used car sales to post record unit sales. We look forward to working with the entire Hempstead Mazda team to further build Hempstead Mazda and continue to enhance its impressive reputation which has been built over the last 20 years."
    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.