Source: PHI GROUP, INC.

Providential Holdings Begins Design Process for Major Vietnam Development Agreement in South Hoi An

LOS ANGELES, CA and DA NANG, VIETNAM -- (MARKET WIRE) -- May 3, 2007 -- Providential Holdings, Inc. (OTCBB: PRVH) (German Stock Exchanges: PR7, WKN 935160), a company investing in the rapidly growing economies in Vietnam and Asia, announced today the engagement of Arthur Valdes Company to begin the design process and survey of a 5,000 hectare area (about 12,500 acres) in South Hoi An, Quang Nam province prior to creating a master plan for development, which Providential will submit to the provincial government in July 2007.

The design process, which will commence on May 7, includes the assembly of a project team that includes a landscape architect, civil engineer, golf course designer and other consultants, who will gather information, background and first-hand knowledge of the environment, terrain, constraints and opportunities for the site. The Arthur Valdes Company will assist Providential with identifying project needs and completing topographical studies, market research, flood plain information and geotechnical reports, among other things.

Valdes will outline the parameters of the project and design schedule, develop the project's mission statement and prepare a preliminary land-use plan for facilities and services in the support of tourism, recreation, wellness, education, culture, spirituality, shopping, dining and finance. The plan will also feature a convention center and multi-grade housing.

Sama Dubai, the international real estate investment arm of Dubai Holding, has undertaken a project larger than 3,000 hectares (approximately 7,500 acres) in an adjacent parcel.

Providential Holdings Chairman and CEO Henry Fahman said, "We are pleased to begin moving forward with the design process and subsequent development of a master plan, as Hoi An is poised for rapid growth, especially in the tourism industry. We expect that our plan will contribute to the development of a major new tourism area, attracting visitors from all over the world."

Temples, shrines and Chinese style tile-roofed wooden houses in the quiet riverside town of Hoi An distinguish the area as one of the country's four World Heritage sites. With its compelling architecture and history as one of Vietnam's most important international seaport towns, Hoi An is rapidly becoming a popular tourist destination.

The coastal areas of the central province of Quang Nam are targeting the tourism market by following a successful village-garden model, which has already attracted the attention of both investors and authorities. Since the Dien Ngoc-Cua Dai road was built in 2004, these tourist areas have been developing strongly, registering over 166 projects so far with a total capital of over US $1.6 billion.

According to an agreement with the People’s Committee of Quang Nam Province, Providential will be responsible for all expenses related to the establishment and completion of the master plan. The terms of the agreement grant Providential a 70-year lease for the land. Expenses incurred by Providential for site clearance and relocation of residents will be deducted from the lease.

About Arthur Valdes Company

Owned by architectural designer Arthur Valdes, the California-based company is renowned for domestic and international resort design that focuses on infusing local history and culture in architectural design and interior accents. Valdes has contributed to the design of many of the country’s top hotel brands, with projects exceeding a billion dollars, for brands that include Ritz-Carlton and the Four Seasons. His work also includes the Las Hadas Resort & Hotel in Manzanillo, the Palmilla Resort Hotel and Villas Del Mar, Chileno Bay and La Esperanza/Puenta Ballena in Cabo San Lucas. Valdes Company also participated in the new exterior concepts for the MGM Grand Hotel & Casino in Las Vegas.

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.

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 receive free e-mail notification of future press releases for Providential, sign up at 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. Frank Hawkins or Julie Marshall Phone: (305) 451-1888 E-mail: Email Contact