SOURCE: Providential Holdings, Inc.

Providential Holdings, Inc.

February 17, 2009 18:01 ET

Providential Holdings Reports Operating Results for Q2 FY '09

LOS ANGELES, CA--(Marketwire - February 17, 2009) - Providential Holdings, Inc. (OTCBB: PRVH) (FRANKFURT: PR7) (WKN 935160), a company engaged in mergers and acquisitions, real estate development, mining and investing in special situations, today announced financial results for the second quarter of fiscal year 2009, ended December 31, 2008.

Total revenues were $6,000 and $645,838 for the three months ended December 31, 2008, and 2007, respectively, from management services and consulting services. Total operating expenses were $390,689 and $329,761 for the three months ended December 31, 2008, and 2007, respectively. Total other expense was $2,061,905 for the three months ended December 31, 2008 compared to $88,126 for the three months ended December 31, 2007. A one-time loss of $2,074,647 was recognized for the adjustment of DDC Industries, Inc.'s stock when this entity was restructured to become PHI Mining Group, Inc. (PINKSHEETS: PHIG), now a majority owned subsidiary of the Company focused on acquiring and developing industrial mineral properties.

Net loss for the three months ended December 31, 2008 was $2,442,175 as compared to a net income of $227,950 for the same period in 2007, which is equivalent to $(0.01) and $0.00 per share, respectively, based on the weighted average number of basic and diluted shares outstanding.

The decrease in net income is primarily due to a decrease in revenue of $639,838 and a loss of $1,927,880 due to the adjustment of DDC Industries' marketable securities following its restructuring for the three months ended December 31, 2008.

Total revenues were $1,994,220 and $674,338 for the six months ended December 31, 2008, and 2007, respectively. We generated $1,982,220 revenues from consulting services and $12,000 for management fees for the six months ended December 31, 2008 compared to $639,838 for consulting fees and $34,500 for management fees in the six months ended December 31, 2007.

Net loss for the six months ended December 31, 2008 was $768,196, compared to $109,460 for the same period in 2007, which is equivalent to ($0.00) per share for both periods, based on the weighted average number of basic and diluted shares outstanding. The difference is primarily due to $1,319,882 increase in revenue, offset by an increase in administrative and general expenses of $34,428, increase in salaries and wages of $54,430 and increase in professional service cost of $67,748. Increase in net loss was also contributed by an increase of $1,815,963 in loss recognized due to the restructuring of PHI Mining Group, offset by an increase of $133,757 in gain on debt settlement which were not present during the corresponding period in 2007.

Providential CEO Henry Fahman said, "Although we did not realize significant revenue from our advisory and M&A activities for the last quarter, we did secure a consulting contract during the period, which is expected to generate substantial revenue for us when completed. In addition, we were successful in restructuring our mining business and currently own about 18 million shares of common stock of PHI Mining Group. During the last quarter we also applied for permission to trade our Philand Corporation's common shares on the Open Market Segment of the Frankfurt Stock Exchange and expect to receive the approval soon."

About Providential Holdings

Providential Holdings and its subsidiaries engage in a number of diverse business activities, the most important of which are M&A and consulting services, real estate development, mining and investing in special situations. The Company assists companies to go public and raise capital, develops "Pointe 91," a luxury resort and premium residential community in Chu Lai, central Vietnam, through Philand Corporation (www.philandranch.com), and engages in mining through PHI Mining Group (www.phimining.com). The Company's main web site address is 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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