FDHG: Fidelity Holdings, Inc.'s Computer Business Sciences Subsidiary Approved for CLEC Status in NY and California
Applications Pending Approval for the States of Illinois and Florida
Thursday February 4, 7:00 am Eastern Time
Company Press Release
NEW YORK--(BUSINESS WIRE)--Feb. 4, 1999-- Fidelity Holdings, Inc. (NASDAQ:FDHG - news) through its technology subsidiary, Computer Business Sciences, Inc. (''CBS''), today announced approval of CLEC (Competitive Local Exchange Carrier) status in the states of New York and California. In addition, CBS has two applications pending approval by the Commissions of the States of Illinois and Florida.
The approvals of these applications allow CBS to operate as a Facilities-Based Carrier of Telecommunications Services and Intrastate Interexchange Services in both states, and will enable it, with its IG2, Inc. subsidiary, to provide its XDSL services in those states. Fidelity Holdings recently announced that IG2, Inc.'s multimedia network platform, IG2(TM) plans to provide to residential and small business customers high speed Internet access, eCommerce capabilities, local and long distance telephone service, television quality video conferencing and television programming, all through existing telephone wires already installed in the customer's home.
''These are the first steps to providing XDSL services in New York and California, which represent tremendous markets,'' stated Doron Cohen, Chairman of IG2, Inc. and President of Fidelity. ''CLEC status is crucial in enabling telecommunications carriers to compete fairly. Since we anticipate more approvals for CLEC status in additional states, we expect to be able to deploy our XDSL based services and offer flat rate long distance to XDSL subscribers throughout much of the United States. We plan to have established CLEC status in more than 30 states by or before the end of 1999.''
IG2, Inc. anticipates deploying its IG2(TM) services in these first states initially in the next quarter and plans to expand to an expected 62 of the largest metropolitan areas across the U.S.
Kimberly Peacock, President of IG2, Inc., commented: ''We are on an aggressive rollout of our service offerings. With the anticipated activity level in New York and California, we are actively seeking strategic partners for enhancing our services.''
Contributing to the IG2(TM) platform are a series of collaborative strategic partnerships and alliances with consumer electronic manufacturers, software developers and companies seeking additional exposure utilizing e-Commerce.
Companies operating in comparable areas are: Concentrix (NYSE:CNCX - news), Harvard Net (www.harvardnet.com), NetRhythms, UUNET (a division of MCI WorldCom) (NASDAQ:WCOMP - news), Covad Communications (NASDAQ:COVD - news) and U.S. West (NYSE:USW - news). Cable companies including AT&T's (NYSE:T - news)''At Home'' are also working towards a solution such as IG2(TM) is expected to provide as the Internet expands into mass marketing.
Fidelity Holdings is a diversified holding company that utilizes information and technology to target industries experiencing consolidation and/or deregulation. The Company operates three divisions - Automotive, Technology and Plastics. The Automotive Division operates through Major Automotive Group, a leading consolidator of automotive dealerships in the New York Metropolitan Area. The Technology Division operates under Computer Business Sciences and its newly formed IG2, Inc. subsidiary. The Plastics Division is developing proprietary products through existing patents.
Fidelity Holdings, Inc. is presently exploring the divestiture of its non-automotive activities by way of sale, merger, consolidation or other opportunities.
For additional information, visit our website at www.fdhg.com, www.majorautomotive.com and www.majorworld.com.
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-K 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.
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