WEST PALM BEACH, Fla., Oct. 21 /PRNewswire-FirstCall/ -- Fidelity
Bankshares, Inc. (Nasdaq: FFFL), the holding company for Fidelity Federal Bank
& Trust, announced today that it will redeem its existing $28.75 million trust
preferred securities, which currently bear a fixed rate of interest of 8.375%
annually. The redemption date will be November 24, 2004.  The redemption of
the existing fixed-rate trust preferred securities will require a write-off of
previously deferred issuance costs, resulting in a charge against income of
$1.2 million before taxes, in the fourth quarter of 2004.
    The proceeds for this redemption will be provided by a new $30.9 million
issue of floating rate trust preferred securities that will bear interest at
three month LIBOR plus 1.97%. Currently, this would be 4.05%. The company has
been assisted in the placement of the new issue of trust preferred securities
by Sandler, O'Neill & Partners, L.P.

    Fidelity Bankshares, Inc., through its subsidiary Fidelity Federal Bank &
Trust, has assets of $3.44 billion and deposits of $2.69 billion and operates
in Florida through 43 offices in Palm Beach, Martin and St. Lucie counties.

    An investment profile on Fidelity Bankshares may be found on the website
http://www.hawkassociates.com/fffl/profile.htm.

    For more information, contact Chairman and CEO Vince A. Elhilow or Chief
Financial Officer Richard D. Aldred at (561) 803-9900, or Frank Hawkins or
Julie Marshall, Hawk Associates, Inc., at (305) 852-2383, e-mail:
info@hawkassociates.com. Information about Fidelity Bankshares, Inc. can be
found on the website http://www.fidelityfederal.com.  Copies of Fidelity
Bankshares press releases, SEC filings, current price quotes, stock charts and
other valuable information for investors may be found on the website
http://www.hawkassociates.com.

    Forward-Looking Statements.
    When used in this report, the words or phrases "will likely result," "are
expected to," "will continue," "is anticipated," "estimate," "project" or
similar expressions are intended to identify "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are subject to certain risks and uncertainties, including,
among other things, changes in economic conditions in the company's market
area, changes in policies by regulatory agencies, fluctuations in interest
rates, demand for loans in the company's market area and competition that
could cause actual results to differ materially from historical earnings and
those presently anticipated or projected. The company wishes to caution
readers not to place undue reliance on any such forward-looking statements,
which speak only as of the date made. The company wishes to advise readers
that the factors listed above could affect the company's financial performance
and could cause the company's actual results for future periods to differ
materially from any opinions or statements expressed with respect to future
periods in any current statements.

Link to this page:

  

http://www.prnewswire.com/comp/281429.html
CONTACT:
Vince A. Elhilow, Chairman and CEO, or
Richard D. Aldred, Chief Financial Officer, both of Fidelity
Bankshares, +1-561-803-9900; or Frank Hawkins or Julie Marshall,
both of Hawk Associates, Inc., +1-305-852-2383, or
info@hawkassociates.com, for Fidelity Bankshares

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