Fidelity Holdings' IG2, Inc. Subsidiary Signs DSL Agreement With Bell Atlantic

Cambridge Telcom Report, Jan 10, 2000

Fidelity Holdings, Inc. Tuesday announced that its IG2, Inc. ("IG2") subsidiary has signed a contract with Bell Atlantic enabling IG2 to offer Digital Subscriber Line (DSL) services to areas outside its proposed targeted markets.

Once operational, this offering will expand IG2's footprint throughout New York's 132 LATA which encompasses the following communities: Nassau, Suffolk, Manhattan, Queens, Brooklyn, Bronx, Staten Island, Westchester and territories up to and including Albany, with further plans to expand this DSL footprint throughout the Bell Atlantic service area from Maine to Virginia. IG2 will purchase DSL service and dedicated internet access from Bell Atlantic, package it with the IG2 family of enhanced services and resell it to IG2's customers.

Kimberly Peacock, Chief Executive Officer of IG2, Inc., said "DSL can serve to minimize churn and increase IG2's planned subscriber base, allowing it to compete effectively against high speed cable modems from cable providers. In conjunction with the IG2 network, the addition of DSL will provide the opportunity to expand our presence throughout the Bell Atlantic service area and create a larger service area footprint, without requiring access lines to or from individual points of presence, or `POPs.'"

Doron Cohen, President of Fidelity Holdings, Inc., stated: "The strides Fidelity's technology division, Computer Business Sciences ("CBS"), has made in 1999 have been noteworthy, filled with milestones such as Competitive Local Exchange Carrier (CLEC) licenses granting us authority as a facilities based telecommunications provider in 26 states, covering 55 of the largest markets in the United States; near completion of the build-out of our first central office in Forest Hills, New York; build-out of a custom SONET ring for IG2 by Bell Atlantic; and now signing the DSL agreement with Bell Atlantic. We are proud of the achievements of our Company in moving towards implementation of the IG2 Network, and look forward to a promising 2000 as we consider the future of our technology division."

CBS's services are planned to be offered, via its IG2, Inc. subsidiary, on a multimedia network platform, IG2, 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.

Fidelity Holdings has been 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 through Computer Business Sciences, its IG2, Inc. subsidiary, its Info Systems, Inc. subsidiary and its plastics subsidiary. Fidelity Holdings, Inc. is presently exploring the divestiture of its non-automotive activities by way of sale, merger, consolidation or other opportunities. Accordingly, all such non-automotive activities have been classified as discontinued operations in its financial statements.

FMI: www.majorautomotive.com and www.majorworld.com.