Abbey, Gardy & Squitieri, LLP and Weinstein, Kitchenoff, Scarlato & Goldman, Ltd. Announce a Class Action Lawsuit Against Fidelity Holdings, Inc.

Business Editors & Legal Writers

NEW YORK & PHILADELPHIA--(BUSINESS WIRE)--Sept. 18, 2000

The following statement was issued today by the law firms of Abbey, Gardy & Squitieri, LLP and Weinstein, Kitchenoff, Scarlato & Goldman, Ltd.:

YOU ARE HEREBY NOTIFIED that a class action lawsuit has been commenced in the United States District Court for the Eastern District of New York on behalf of all purchasers of Fidelity Holdings, Inc. ("Fidelity" or the "Company") common stock between November 15, 1999 and April 12, 2000 (the "Class Period").

The Complaint charges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose material adverse information about the Company, including: a) that Fidelity had experienced massive losses in fiscal year 1999 rather than the net profits that the defendants led the investing public to believe through various press releases and financial statements; b) that the Company improperly deferred expenses for the first three quarters of fiscal year 1999 into the fourth quarter of 1999, with such expenses representing an outstanding 50% of the total operating expenses for fiscal year 1999; and c) that the Technology Division, which the Company announced would be retained because of its future prospects, rather than be divested as previously announced, was in fact being retained because its poor operating results prevented it from being sold and it could no longer be considered a discontinued operation, since it would result in a massive write-off that would cause a drastic drop in stock price.

Plaintiff seeks to recover damages on behalf of herself and all other purchasers of Fidelity common stock during the Class Period, excluding defendants and their affiliates. Plaintiff is represented by Abbey, Gardy & Squitieri, LLP and Weinstein, Kitchenoff, Scarlato & Goldman, Ltd., law firms with extensive experience in prosecuting class actions, and significant experience in prosecuting securities fraud.

If you are a member of the class described above, you may, not later than November 14, 2000, move the court to serve as lead plaintiff of the class, if you choose. In order to serve as lead plaintiff however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:

Mark C. Gardy ([e-mail]) Patricia Toher ([e-mail]) Abbey, Gardy & Squitieri, LLP 212 East 39th Street New York, New York 10016 Tel: [phone] (toll free) or [phone] Fax: [phone] http://www.a-g-s.com

Mark S. Goldman ([e-mail]) Weinstein, Kitchenoff, Scarlato & Goldman, Ltd. 1608 Walnut Street, Suite 1400 Philadelphia, PA 19103 [phone]