Investrend Research Announces Investment Opinion on Providential Holdings.

Business Editors

NOTE TO EDITORS: The following is an investment opinion issued

by Investrend Research

NEW YORK--(BUSINESS WIRE)--June 4, 2002

Providential Holdings Initiated With 'Speculative' Rating by

Investrend Analyst Mohammad Sharifzadeh, MBA, CFA 

Investrend analyst Mohammad Sharifzadeh, MBA, CFA has initiated coverage of Providential Holdings, Inc. (OTCBB:PRVH), with a 'Speculative' Rating.

The full report is available at http://www.investrend.com. The Investrend Research rating system may be viewed at http://www.investrend.com/iciratings.htm.

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"Based on a recent major order for LCDs and projected revenues from other investments and activities, management expects to achieve revenues exceeding half a billion dollars in fiscal year 2003; however, since the order is for a 12mo period it cannot be used to project a sustainable revenue stream for some years, and will require the financing and establishment of manufacturing facilities," said Sharifzadeh.

"The company is involved in numerous acquisitions that once finalized will improve the consolidated financial statements of the company; but to meet cash requirements the company needs to generate adequate cash through its divisions and independent operations or through inter-company transfers. Management informed us that their major convertible note-holders, Sovereign Capital and EIG Capital (holding $1,650,000 face value of the convertible notes) will convert the bridge notes gradually, which will reduce the interest expense in the income statement while reducing the liability side and improving the equity side of the balance sheet. Providential also has a 3-year $20 million equity line of credit with Boston based Dutchess Private Equities Fund. L.P.

"PRVH has been able to survive while reorganizing and pursuing various acquisitions and joint venture agreements despite a $6.4 million stockholders' deficit. Although their plans are very ambitious, it seems that initial resources are in line with its strategy of focusing on niche markets.

"We will be providing updates as the company's plans progress," he concluded.

Mohammad Sharifzadeh, MBA, CFA, is a member of AIMR, LASFA, OCSIM and GARP. He also holds the Certified Financial Risk Managers (FRM) designation awarded by GARP and has NASD licenses series 7, 24, and 65. He holds an MBA (M. Phil.) degree from the University of Oxford England with emphasis in finance and econometrics and an honors B.Sc. degree in mathematics, statistics and economics. Mr. Sharifzadeh has over 15 years of experience in the field of investment management and research. He is a financial analyst, an investment consultant and teaches courses in finance and quantitative methods at the University of Phoenix Southern California campus.

Investrend Research has been a leading independent equity research publishing and distribution program since 1996, with over 50 AIMR-qualified professional analysts posting more than 400 reports to date. Anyone, including a company, investor relations practitioner, financial institution or interested private investor, may enroll a company for coverage. Enrollment fees vary, up to $1,950 per month for full, continuous coverage, which is being paid by Providential Holdings, Inc. Analysts are paid in advance for their initial reports by Investrend to insure independence. Full details of the company's policies and guidelines are posted on the website at www.investrend.com.

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