Fidelity Holdings, Inc. (Nasdaq NM: FDHG) today announced that it is reviewing various options with respect to its corporate structure, including the relationship with IG2, the company's telecommunications subsidiary. Based on advice from Rodman & Renshaw, its recently engaged financial advisor, a New York based investment banking firm, as well as its own extensive analysis, Fidelity is considering the appropriate actions to maximize shareholder value, which may include selecting a strategic partner/investor or sale or spin-off of IG2. The Company believes that establishing IG2 as a separate company would clarify its status, attract investment and allow Fidelity's rapidly growing automotive activity, Major Automotive Group, to continue its growth unencumbered by the start-up expenses attributable to establishing IG2. While no decision has been made to date, it is anticipated that a decision regarding IG2 will be reached within the next 30 to 60 days and such decision implemented by late 2000 or early 2001.
"Fidelity's new management team is focused on enhancing shareholder value," stated Bruce Bendell, Chairman and CEO of Fidelity Holdings and President of Major Automotive Group. "The Company's Major Automotive subsidiary continues to show strong revenue and earnings growth as well as continued rapid expansion throughout the New York/New Jersey Metropolitan region. While we are convinced that IG2's technology offers an excellent growth opportunity, we believe it can reach its goals and objectives faster and attain a valuation in line with its growth potential if it were an independent entity. Although we would retain an ownership interest in IG2, and thereby participate in its success, Fidelity management would be able to concentrate on its core business in successfully acquiring and operating automotive dealerships and leave the growth of IG2 in the hands of our experienced managers who can better focus and communicate with industry analysts."
Fidelity Holdings is a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. The Company currently 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.
For additional information, visit the Company's websites at www.fdhg.com, www.ig2.com, www.majorautomotive.com, www.majorworld.com, www.carstv.com www.internetconnections.com, www.infotalkie.com and www.talkie.co.il.
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.
"Fidelity's new management team is focused on enhancing shareholder value," stated Bruce Bendell, Chairman and CEO of Fidelity Holdings and President of Major Automotive Group. "The Company's Major Automotive subsidiary continues to show strong revenue and earnings growth as well as continued rapid expansion throughout the New York/New Jersey Metropolitan region. While we are convinced that IG2's technology offers an excellent growth opportunity, we believe it can reach its goals and objectives faster and attain a valuation in line with its growth potential if it were an independent entity. Although we would retain an ownership interest in IG2, and thereby participate in its success, Fidelity management would be able to concentrate on its core business in successfully acquiring and operating automotive dealerships and leave the growth of IG2 in the hands of our experienced managers who can better focus and communicate with industry analysts."
Fidelity Holdings is a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. The Company currently 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.
For additional information, visit the Company's websites at www.fdhg.com, www.ig2.com, www.majorautomotive.com, www.majorworld.com, www.carstv.com www.internetconnections.com, www.infotalkie.com and www.talkie.co.il.
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.
