FOUNTAIN VALLEY, Calif., April 10, 2003 (PRIMEZONE) -- Providential Holdings, Inc. (OTCBB:PRVH) (Berlin Stock Exchange:PR7, WKN 935160) (www.phiglobal.com) today announced that Nettel Telecom International, a wholly owned subsidiary of Providential Holdings, Inc.'s acquiree Nettel Global Communication, have received purchase orders for $5.53 million per month in prepaid calling cards and PIN's from Direct Communications, Inc.
Under the terms of the contract, Direct Communications will be purchasing $5.53 million or 382,000 prepaid calling cards and PIN's per month over a 12-month period: $2,120,000 in $10 increments (276,000 World Direct Cards) and $3,414,000 in $20 increments (106,000 Asia Direct Cards) per month.
The prepaid phone cards will be distributed through their vast network of over 40,000 retail outlets, including convenience stores, newsstands, grocery stores and discount stores. The retail outlets are serviced by independent distributors, which often distribute newspapers or other items to the retail outlets. Direct Communications purchase large volumes of branded prepaid phone cards and sell the cards in smaller quantities, together with cards from other carriers and/or private label cards they distribute to independent distributors, for ultimate distribution to retailer outlets.
Utilizing individual PIN's and a toll-free number provided by Nettel Telecom, Direct Communications will also be designing and producing calling cards under their own brand name. Direct Communications will be responsible for the upfront expenses to print the phone cards.
In addition to purchasing the PIN's separately, Direct Communications will also purchase Nettel's branded cards "World Direct and Asia Direct prepaid phone cards" at agreed discount rates from the face value of the cards, and resell them to their distributors at a slightly lower discount. The cards will be sold on a C.O.D. basis.
Over the last two months Direct Communications and more than 30 master distributors have been testing Nettel's World Direct Prepaid Calling Cards with great success. Their customers are very happy with the voice quality and the accurate tracking of the minute usage.
Besides Direct Communications, Nettel Global Communication is in current negotiations with over 30 master distributors located in the U.S. and Canada.
Providential Holdings has consummated an agreement to acquire 46.5% of Nettel Global Communication.
URL's: http://www.nettelcommunicDirecton.com
http://www.nettelcommunication.com
Safe Harbor:
Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future to differ materially from forecasted results. These risks and uncertainties include, among other things, the company's ability to attract qualified management, raise sufficient capital, and effectively compete against similar companies.