SOURCE: Providential Holdings, Inc.

March 01, 2007 08:58 ET

Providential Holdings Signs Agreement to Take Baby G, Inc. Public

LOS ANGELES, CA -- (MARKET WIRE) -- March 1, 2007 -- Providential Holdings, Inc. (OTCBB: PRVH) (German Stock Exchanges: PR7, WKN 935160), a company providing international advisory services specializing in mergers and acquisitions and investing in the rapidly growing economies in Vietnam and Asia, announced today a definitive agreement to arrange for initial funding and take New York-based Baby G, Inc. public in the United States. In exchange for its services Providential Holdings will receive stock in the company. Baby G's management projects revenue of $25 million for 2007 and $35 million for 2008.

Baby G, Inc. and its wholly owned subsidiaries design, develop, manufacture and market consumer products for the apparel industry worldwide. Baby G's business model includes private label manufacturing and branded fashion collections throughout the United States. With an established network of high profile celebrities and sports icons, Baby G intends to secure additional licensing agreements to enhance the branded fashion division, which is projected to represent 35% of gross revenues in 2007. Baby G has secured licensing rights to produce premium golf collections and moderately priced sportswear with all-time NFL PRO linebacker, Lawrence Taylor.

As an outsourcing pioneer, Baby G has capitalized on its ability to provide their customers with cost efficient products, expanding its manufacturing base worldwide, including China, Vietnam, Egypt, Malaysia, Cambodia, Bangladesh and Turkey.

At the core of its operation, Baby G continues to provide full packaging services, which includes sewing, embroidery, trimming, laundering and packaging, to private label customers, among them include domestic manufacturers and retailers such as Kohl's and Wal-Mart. In 2007, private labeling manufacturing is projected to represent 65% of gross revenues.

Baby G's Founder and CEO Jeff Gerson said, "With the help of Providential Holdings we will be able to increase our celebrity branded fashion lines and service more private label customers. Our company has been building a reputation in the apparel industry since 1997 and is poised and ready to move on to the next level and we are excited that Providential will be helping us do it."

Providential Chairman and CEO Henry Fahman said, "The access to capital funding for further growth will provide Baby G. with the means to continue their expansion in celebrity branding and packaging services for private labels, while offering investors an excellent opportunity to participate in a growing industry."

About Baby G, Inc.

Baby G and its wholly owned subsidiaries design, develop, manufacture, and market consumer products for the apparel industry worldwide. The company began private label business manufacturing in 1997, quickly rising into a multi-million dollar business before it began establishing its own identity through its celebrity name brand lines. Baby G's business model includes private label manufacturing and branded fashion collections throughout the United States. Through its established network of high profile celebrities and sports icons, Baby G intends to secure additional licensing agreements to enhance its branded fashion division, providing moderately priced clothing lines to consumers. At the core of its operation, Baby G continues to provide full packaging services, which includes sewing, embroidery, trimming, laundering and packaging, to private label customers, among them are domestic manufacturers and retailers such as Kohl's and Wal-Mart. For more information on Baby G, Inc. and its subsidiaries, call Michele Latas at (212) 695-8388 or e-mail mlatas@babyg-us.com.

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
    E-mail: Email Contact