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Fidelity Holdings Receives Approval for a Million Dollar Grant From State of Virginia

3 August 2000

Total Benefits Estimated At Five Year Value of $2.8 Million

>     KEW GARDENS, N.Y. - Fidelity Holdings, Inc., today announced that it has received approval for governmental grants from the state of Virginia, under Governor Jim Gilmore, for the benefit of Internet Connections, part of the Company's IG2, Inc. subsidiary.

    Governor Gilmore approved a $500,000 matching grant from the Governor's Opportunity Fund to supplement a $500,000 endowment for site preparation by Henrico County, Virginia for a new operations center. The Virginia Economic Development Partnership, the Greater Richmond Partnership and Henrico County facilitated the award of the grant to the Company. Total benefits over the next five years, including tax incentives, training services to be provided by the Virginia Department of Business Assistance, infrastructure, and management, technical and financial assistance are estimated at $2.8 million, as calculated by the Greater Richmond Partnership.

    "We are excited to welcome Fidelity Holdings to Virginia," said Governor Gilmore. "Our growing reputation in the high tech arena is sure to serve as a catalyst for Fidelity's future expansion. We anticipate a long and successful association with the Company, as it continues to gain skilled and dedicated employees and develops its IG2(R) business."

    Dennis Roth, Chairman & Chief Executive Officer of Fidelity Holdings' technology division, stated: "We are pleased to select Virginia as a major technical center from where all Mid-Atlantic operations will be driven. The growing technical infrastructure, the available academic community and skilled workforce, and supportive governmental policies make Henrico County an attractive choice."

    "Henrico County and Virginia will reap the rewards of Fidelity Holdings and its reputation as a `leading edge' in developing bundled communication services," said Virginia Secretary of Commerce and Trade Barry E. DuVal. "We are honored to have Fidelity as one of our newest technology citizens."

    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, Inc., 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 and ranked number one nationwide in used car sales dollars as a percentage of overall sales.