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Fidelity Holdings' Major Automotive to Acquire Hempstead Nissan Dodge Suzuki

13 July 2000

Fidelity Holdings' Major Automotive to Acquire Hempstead Nissan Dodge Suzuki

    KEW GARDENS, N.Y. - Fidelity Holdings, Inc. (Nasdaq NM: FDHG), today announced that it has agreed to acquire, via its Major Automotive division, Hempstead Nissan Dodge Suzuki, based in Hempstead, New York, subject to factory approval.

    The acquisition, following an agreement to acquire Five Towns Lincoln - Mercury of Lawrence, New York and Hempstead Mazda, is the Company's third acquisition on Long Island and second this month.

    "In the past few months, we have been able to establish a strong foothold in the Long Island market and execute on our strategy of clustering franchises in an area and around a Major World used car dealership. This plan has proven successful, and we look forward to continuing this strategy throughout the New York/New Jersey Metropolitan region," said Bruce Bendell, Chairman and Chief Executive Officer of Fidelity Holdings and President of Major Automotive Group. "With this acquisition, our largest in the last two years, we look forward to re-establishing this dealership as the top retail Nissan dealer in the Nation, as it has been in the recent past."

    James Wallick, President and Chief Operating Officer of Fidelity Holdings, stated: "We are pleased to note the expansion of our franchise offerings to include Nissan and Suzuki. As we continue to acquire franchises, we expect to be able to add dealerships more efficiently, with less time required for factory approval. In addition, the combination of Hempstead Mazda and Hempstead Nissan Dodge Suzuki, both dealerships located on North Franklin Street, the hottest automotive strip in Nassau County, would give us the most franchises of any dealer group in Hempstead. The two Hempstead dealerships, together with Five Towns Lincoln - Mercury, will provide Major Automotive with a strong presence on Long Island."

    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 and ranked number one nationwide in used car sales dollars as a percentage of overall sales. The Technology Division operates primarily through Computer Business Sciences, its IG2, Inc. subsidiary, its Info Systems, Inc. subsidiary and its CarsTV.com, Inc. subsidiary.