205 DATURA STREET
                                                       WEST PALM BEACH, FL 33401
                                                                  (561) 803-9900
PRESS RELEASE
FOR IMMEDIATE RELEASE


Fidelity Bankshares Announces Refinancing of Existing Trust Preferred Securities


West Palm Beach, FL, October 21, 2004 - 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
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.     Email:
info@hawkassociates.com.  Information  about  Fidelity  Bankshares,  Inc. can be
found on the  website  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:
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.