Providential Holdings Reports Q3 FY '07 Financial Results

LOS ANGELES, CA and HO CHI MINH CITY, VIETNAM -- (MARKET WIRE) -- May 21, 2007 -- Providential Holdings, Inc. (OTCBB: PRVH) (German Stock Exchanges: PR7, WKN 935160), a company investing in the rapidly growing economies in Vietnam and Asia, today reported its financial results for the third quarter ended March 31, 2007.

The company reported revenues of $2.5 million in fees from consulting and advisory services for the quarter, as compared with total revenues of $127,100 for the same period last year. The increase in revenues during the current quarter is attributed to merger advisory services Providential provided.

Net income for the quarter was $2.3 million or $0.01 earnings per share, compared to a net loss of $186,049 or $0.00 earnings per share in Q3 '06. The increase in net income is primarily due to a $2.4 million increase in consulting income and a $103,043 increase in other income for the quarter. Total operating expenses were $216,189 in Q3 '07, compared to $243,132 in Q3 '06.

Providential Chairman and CEO Henry Fahman said, "This is an exciting time for Providential as the rapid and consistent growth of the Vietnamese economy has increased the need for consulting and advisory services, such as those Providential offers. We strengthened our balance sheets, increasing our total assets from $2.9 million in the second quarter to $6.7 million. We reduced total liabilities from $4.2 million in the second quarter to $3.9 million in the third quarter.

"During the third quarter, Providential's subsidiary, Providential Capital, launched a US $100 million private equity fund to finance Vietnamese companies seeking to go public in Vietnam and the U.S., including state-owned enterprises that are being privatized.

"In addition, the company recently signed an agreement with the People's Committee of Quang Nam Province and brought in an expert architectural design team to study and establish a master plan for the development of a 5,000-hectare area (about 12,500 acres) of South Hoi An, which will include facilities and services in the support of tourism, recreation, wellness, education, culture, spirituality, shopping, multi-grade housing, conventions, dining and finance. This project is adjacent to the one undertaken by Dubai Holding (www.dubaiholding.com).

"With connections and expertise in both local and international capital markets, Providential has become the preferred partner of many high quality companies looking for growth acceleration and will continue to focus on areas that potentially create superior value for our partners, shareholders and investors."

About Providential Holdings, Inc.

Providential Holdings and its subsidiaries engage in a number of diverse business activities, the most important of which are M&A advisory services and investments in the rapidly growing economies in Vietnam and Asia. For more information on Providential Holdings and its subsidiaries, visit http://www.phiglobal.com. As part of its activities in Vietnam, Providential has been hosting seminars in conjunction with the Nasdaq Stock Market, the Vietnamese Chamber of Commerce and Industry and several leading U.S. investment banking firms, to help Vietnamese companies go public and raise capital through the U.S. financial markets.

For investor relations questions regarding Providential, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com, or visit http://www.americanmicrocaps.com or http://www.hawkassociates.com. To receive free e-mail notification of future press releases for Providential, sign up at http://www.hawkassociates.com/email.aspx.

Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

Contact Information: Investor Relations Contact: Hawk Associates, Inc. Frank Hawkins or Julie Marshall Phone: (305) 451-1888 E-mail: Email Contact