SOURCE: Providential Holdings, Inc.

October 12, 2007 09:26 ET

Providential Holdings Reports FY '07 Results

LOS ANGELES, CA and HO CHI MINH CITY, VIETNAM--(Marketwire - October 12, 2007) - Providential Holdings, Inc. (OTCBB: PRVH) (German Stock Exchanges: PR7, WKN 935160), a company engaged in mergers and acquisitions, consulting and advisory services, fund management and investments in the rapidly growing economies in Vietnam and Asia, announced today that in the fiscal year ended June 30, 2007, the company earned $34,304 or $0.00 EPS, compared with net income of $991,513 or $0.01 EPS in fiscal 2006. The company generated $3,572,347 from consulting and advisory services in fiscal 2007 compared with $4,119,009 for the year ended June 30, 2006.

The drop in revenue was attributed to a valuation placed on 8,550,000 shares of All Line, Inc. (http://www.allline.com) the company received for its consulting and advisory services. Although a recent quoted price was $1.20 per share, only $855,000 was recognized as earned revenue from the transaction. In addition, $2,966,043 was impaired in connection with holding of approximately 3.5 million shares in Cavico Corporation (http://www.cavicocorp.com), which had accepted the 12-J revocation of its status as a public company in June 2007. Cavico is currently in the process of preparing a Form 10 with the expectation of obtaining a new Over-the-Counter Bulletin Board listing in the near future, at which time the value of the company's holding in Cavico will be better reflected by market price.

Providential Chairman and CEO Henry Fahman said, "Although we were adversely impacted by these events during the course of the year, our consulting and advisory services have taken off as the Vietnamese economy continues to open and more Vietnamese companies look to become publicly traded. In support of these activities, we've hosted seminars throughout Vietnam and launched Providential Vietnam Growth Fund (http://www.providentialcapital.com), a Cayman Island-based private equity fund, to raise $200 million to $300 million to finance Vietnamese companies seeking to go public in Vietnam, the U.S. and other regional markets. As a result of this increased focus on advisory and consulting services as well as private equity opportunities, we expect our balance sheet to strengthen over the next fiscal year and create significant value for our shareholders.

"We have also entered into an agreement which allows the company to lease approximately 8,000 acres of land, valued at $250.3 million, in South Hoi An, Quang Nam Province, Vietnam to develop a master plan community under a 70-year lease term. The project, located on Vietnam's central coast, will be an integrated tourisim zone that includes five-star hotels and resorts, a convention center, shopping malls, recreational and entertainment facilities, multi-use housing, marinas, a world-class international university and more. We subsequently formed the PhiLand Corporation (http://www.philandcorp.com) to manage this project.

"We are pursuing gas and oil ventures through our PhiTex Energy Group to acquire and develop oil and gas properties in the Texas area. Subsequently, we formed a joint-agreement in order to acquire up to 40% of a public company created to develop 2,700 acres of mineral, oil and gas rights near Bakersfield, California.

"As a result, I am hopeful that fiscal 2008 will be a year of substantial progress for Providential Holdings," Fahman added.

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 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. To sign up for free e-mail notification of future releases, visit 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.
    Ken AuYeung and Frank Hawkins
    Phone: (305) 451-1888
    Email: Email Contact

    17011 Beach Boulevard, Suite 1230
    Huntington Beach, CA 92647
    Telephone: (714) 843-5455
    Fax: (714) 843-5455