SOURCE: Providential Holdings, Inc.

August 25, 2005 03:15 ET

Providential Holdings Subsidiary ATC Technology Reorganized to Improve Financials Prior to Imminent Listing

LOS ANGELES, CA -- (MARKET WIRE) -- August 25, 2005 -- Providential Holdings, Inc. (OTC BB: PRVH) (Berlin and Frankfurt Stock Exchanges: PR7, WKN 935160), a provider of international advisory services specializing in mergers and acquisitions, today announced that its subsidiary ATC Technology Corp has completed a debt for equity exchange among Providential Holdings ("PRVH"), ATC and its creditors.

The transaction called for the notes and debts among the original owners and management of ATC Technology, PRVH, and ATC Technology as a corporate entity, to be entirely cancelled and forgiven. In exchange, Providential returned 70,000,000 shares of common stock of ATC to the original owners and ATC's treasury.

Following this transaction, PRVH owns 10,000,000 shares of ATC while its shareholders own about 20,000,000 shares of ATC common stock as result of an earlier stock dividend distribution. ATC was able to write off more than $1.5 million of debts and payables from its balance sheet and Providential was able to cancel certain notes and liabilities owed to ATC's original owners. ATC's balance sheet now has a small current liability. It gives ATC's management a very strong position to launch its new partnerships, joint ventures and marketing services in China.

With this restructuring PRVH and its shareholders have retained over 30% of the new ATC's stock ownership and at the same time empowered ATC's management to unlock its potential to create value for ATC, PRVH, and its shareholders. This reorganization is expected to greatly benefit all the parties involved.

Because of the hardware price war between the video game titans, the gaming accessories' pricing will continue to be depressed in the foreseeable future. ATC has already changed its main business from the hyper-competitive consumer video electronics to financial services in China. Led by its president and CEO, Keith Wong, and COO, Norm Klein, the new ATC business model will instead concentrate on partnerships, joint ventures and marketing services with and for those medium-sized Chinese industrial companies. ATC's new strength is in its management's ability to seek, consummate and follow through transactions in China. Keith Wong has more than fifteen years of transactional business experience with Chinese enterprises in purchase order, work contract and partnership deal negotiations. Keith Wong also has an extensive working knowledge of the Chinese private enterprises and their business culture.

ATC expects to file a registration statement with the SEC for a public listing of its common stock no later than September 30, 2005, and will update shareholders on the progress with its new Chinese partnerships through other news releases in the near future.

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, industrial tools, and international markets. 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.

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

  • Contact:
    Providential Holdings, Inc.
    Henry Fahman
    714-843-5450, Ext. 5455
    Email Contact

    ATC Technology Corp.
    Keith Wong
    602-690-6359
    Email Contact