Providential Holdings Reports Q1 FY '07 Financial Results

LOS ANGELES, CA and HO CHI MINH CITY, VIETNAM -- (MARKET WIRE) -- November 21, 2006 --Providential Holdings, Inc. (OTCBB: PRVH) (German Stock Exchanges: PR7, WKN 935160), a provider of international advisory services specializing in mergers and acquisitions, reported today its financial results for the first quarter ended September 30, 2006.

The company reported revenues of $37,000 in fees from consulting and advisory services for the quarter, as compared with total revenues of $40,805 for the same period last year.

Total operating expenses were $338,489 in FQ1 '07, compared to $373,208 in FQ1 '06. The decrease is primarily due to the decrease in bad debt expense in FQ1 '07, offset by the increases in professional services, including non-cash compensation, impairment of assets, salaries and wages, and general administrative expenses.

Net loss for the quarter was $58,187, compared to a net loss of $394,624 in FQ1 '06. Both quarters had earnings per share of $0.00 based on the weighted average number of basic and diluted shares outstanding.

The company noted that it entered into a consulting agreement with a client during the quarter ended September 30, 2006 and has received a significant amount of compensation that will not be recognized until the second fiscal quarter.

In addition to previous purchases, the company also bought back 1,034,940 shares of its common stock from the open market during the quarter ended September 30, 2006.

Providential Chairman and CEO Henry Fahman said, "Our business is off to a strong start for the new fiscal year. Our reported financials results for the first fiscal quarter do not reflect a significant amount of compensation received from a new consulting agreement during the quarter. This will be included in the second fiscal quarter financials.

"Together with the Vietnamese construction company Cavico, we have received a license to build a cement plant in the Ha Nam Province of Vietnam just south of Hanoi. We also announced a joint venture with Thanh Viet Fund Management to raise and establish Vietnam equity investment funds and provide advisory services to assist Vietnamese companies in listing on foreign exchanges, particularly in the United States. We are very encouraged by our prospects here. The Vietnamese economy is rapidly transforming to a full-blown market economy and stock exchanges in both Ho Chi Minh City and Hanoi are flourishing. We look forward to realizing these opportunities in the coming year.

"We instituted the share buyback because we believe that the company's stock is undervalued at this level, given the current business prospects," Fahman said.

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 independent energy. The company acquires and consolidates special opportunities in selective high-growth industries to create additional value, acts as an incubator for emerging companies and technologies, and provides financial consultancy and M&A advisory services to U.S. and foreign companies. 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 a leading U.S. investment-banking firm, to help Vietnamese companies go public and raise capital through the U.S. financial markets.

A profile for investors can be accessed at http://www.hawkassociates.com/prvhprofile.aspx.

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

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 N. Hawkins, Jr. or Julie Marshall Phone: (305) 451-1888 Email: Email Contact