PHI Group Signs Agreement to Recapitalize Vietnam-Based TRACODI's Paper Subsidiary

LOS ANGELES, CA and HOCHIMINH, VIETNAM--(Marketwire - May 4, 2009) - PHI Group, Inc., formerly 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 that the Company has signed a letter of intent with Transport and Communication Development and Investment Company Limited (TRACODI) to arrange funding for and recapitalize Phuong Nam Kenaf Pulp Mill and Paper Company, a wholly-owned subsidiary of TRACODI.

According to the letter of intent, PHI Group will work with institutional and individual investors to provide capital for Phuong Nam Pulp and Paper to complete the construction of the mill, contribute toward working capital, and service certain existing debt obligations.

Phuong Nam is a manufacturer of high-quality bleached pulp from kenaf and other softwood plants with PR-C APMP (Pre-Conditioning Alkaline Peroxide Mechanical Pulping) technology to be firstly used in Vietnam and Southeast Asian region as well from Andritz -- a global leading supplier of paper and pulp processing technology (http://www.andritz.com). Phuong Nam production site is located in Long An province, Southern Vietnam. The Company has invested in excess of $130 million into this project and expects to generate approximately $100 million in revenues per year when completed.

PHI Group intends to own a portion of Phuong Nam Pulp and Paper Co. as a result of this transaction.

About PHI GROUP, INC.

PHI GROUP, INC., formerly known as Providential Holdings, Inc., focuses on 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, (www.philandranch.com), and engages in mining in Southeast Asia (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.

Contact Information: Henry Fahman Tel: 714-843-5455