Providential Holdings Officers Attended Groundbreaking Ceremony for Chu Lai Open Economic Zone in Vietnam.

Business Editors

CHU LAI, Vietnam--(BUSINESS WIRE)--July 25, 2003

Providential Holdings, Inc. (OTCBB:PRVH)(Berlin:PR7, WKN 935160)(www.phiglobal.com) today announced that the Company successfully attended the ceremony for the official formation of the Chu Lai Open Economic Zone in Vietnam and the groundbreaking of key investment projects at this site on Friday, July 25, 2003.

Also present at the ceremony were Deputy Prime Minister Nguyen Tan Dzung, other high-ranking members of the Vietnamese central and provincial governments, as well as foreign and local investors.

On June 5, 2003, Vietnam's Prime Minister Phan Van Khai signed a decision establishing her first Open Economic Zone (OEZ) in Chu Lai, a former U.S. military base in Quang Nam Province, where investors can enjoy the most favorable climate for business and investment in Vietnam (http://www.quangnam.gov.vn/viet/default.htm).

As of today there are 16 investment projects that have been granted investment licenses in the Chu Lai OEZ totaling US$533 million. Key projects include Tam Hiep Industrial Park, Ky Ha Pier, Truong Hai automobile assembly plant, and Chu Lai International Airport.

Providential Holdings is the first American company that has eyed Chu Lai as an investment opportunity since early 2001. While the Company focuses on areas that can deliver near-term bottom-line performance and profitability, it also pays special attention on investment opportunities that have high potential for growth.

Providential has signed a joint-venture agreement with Ky Ha Chu Lai Development & Investment Company (CDI, Co.) to establish a paper factory with expected capacity of 20,000 metric tons per year and to develop processing platforms that can help reduce production costs for U.S. and foreign manufacturers. The Company also cooperates with other strategic partners to promote investments and develop other high-priority projects in the Chu Lai OEZ.

The Vietnamese government encourages and protects investments of Vietnamese organizations and individuals, overseas Vietnamese and foreign investors. Top priority will be given to infrastructure, urban and industrial development, services, tourism, entertainment, finance, banking, transport, insurance, education, healthcare, accommodation, and imports-exports.

About Providential:

Providential Holdings, Inc., a diversified service and manufacturing company, focuses on selective technologies, financial services, international markets and special situations. Products and services include mobile entertainment systems, information technology, identification technology, telecommunications, and computer hardware and software. The Company also engages in trade commerce and mergers and acquisitions, especially in the U.S. and emerging overseas markets with high potential for growth. URL: http://www.phiglobal.com.

Safe Harbor: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results in the future to differ materially from forecasted results. These risks and uncertainties include, among other things, the company's ability to attract qualified management, raise sufficient capital, and effectively compete against similar companies.