Provident Bank Announces New Branch in Moreno Valley.

RIVERSIDE, Calif. -- Provident Financial Holdings, Inc. ("Company") (NASDAQ:PROV), the holding company for Provident Savings Bank, F.S.B. ("Bank"), today announced that the Bank has signed a Lease Agreement with the intention of opening a new retail/business banking office in Moreno Valley, California. The branch will be located at the southeast corner of Iris Avenue and Perris Boulevard in a new (proposed) shopping center known as Iris Plaza. The area is a rapidly developing part of Riverside County with many new and existing single-family housing tracts in the immediate vicinity. A Walgreen's drugstore is slated to become one of the anchor tenants of the new shopping center.

The Iris Avenue Branch will become the Bank's 14thfull-service branch and is scheduled to open in the fall of 2007 subject to the approval of the Office of Thrift Supervision and the completion of the shopping center.

"This is the second branch in a community where we have strong ties," said Craig G. Blunden, Chairman, President and Chief Executive Officer of the Company. "We have participated in the growth of Moreno Valley since the late 1970's when we opened our first branch and look forward to our growing commitment to the community."

Safe-Harbor Statement

Certain matters in this News Release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to, among others, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company's mission and vision. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. The Company's actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide range of factors including, but not limited to, the general business environment, interest rates, the California real estate market, competitive conditions between banks and non-bank financial services providers, regulatory changes, and other risks detailed in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2006.