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


                Fidelity Bankshares, Inc. Announces Completion of
                Public Offering of 1.15M Shares of Common Stock

West Palm Beach,  FL, December 21, 2004 -- Fidelity  Bankshares,  Inc.  (Nasdaq:
FFFL) announced today that its secondary  offering of 1 million shares of common
stock,  together with 150,000 shares under option as an  over-allotment,  closed
today. The underwriter's over-allotment option was exercised on Friday, December
17, 2004, two days following the pricing of the 1  million-share  offering.  The
public offering was priced at $40.25 per share.

Net  proceeds to the  company  were $44  million,  including  proceeds  from the
exercise of the underwriter's  over-allotment  option. Net proceeds will be used
for general corporate purposes including  continued  expansion and balance sheet
growth together with opening new branches.

Keefe,  Bruyette & Woods Inc.  acted as lead manager,  and Ryan,  Beck & Co. and
Janney, Montgomery and Scott LLC acted as co-managers.

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,  Indian  River 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.