SOURCE: Providential Holdings, Inc.

August 30, 2006 09:00 ET

Providential Holdings Relinquishes Purchase of Western Medical Asset

LOS ANGELES, CA -- (MARKET WIRE) -- August 30, 2006 -- Providential Holdings, Inc. (OTCBB: PRVH) (www.phiglobal.com) today announced that it has decided not to pursue the contemplated purchase of Western Medical, Inc.'s assets. The decision was made based on the final audit by Providential's financier Northern Healthcare Capital prior to the scheduled closing, which showed significant material changes. The accelerated deterioration of Western Medical's business has consequently forced it to sell some of its assets separately.

Robert Buceta, Chairman of Providential Western Medical, a wholly owned subsidiary of Providential Holdings, commented: "We were disappointed for not being able to close this transaction as anticipated; however, in light of the latest developments concerning the contemplated purchase, we believe it is in the best interest of Providential's shareholders not to pursue it further under the current structure."

About Providential Holdings, Inc.

Providential Holdings is a diversified holding company primarily engaged in mergers and acquisitions and independent energy business. The Company acquires and consolidates special opportunities in selective 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/.

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.

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