HUNTINGTON BEACH, Calif.--(BUSINESS WIRE)--June 16, 2006--Providential Holdings Inc. (OTCBB:PRVH)(Berlin Stock Exchange and Frankfurt Stock Exchange:PR7 - WKN 935160) (www.phiglobal.com) today announced that Western Medical, Inc., an Arizona corporation engaged in the business of selling durable medical equipment and providing related services, with headquarters in Phoenix and locations in Prescott and Tucson, Ariz., has filed a Chapter 11 Petition pursuant to the terms of the asset purchase agreement previously executed by both companies.

According to the asset purchase agreement, Providential Holdings will purchase key assets, valued at approximately $US 15 million, of Western Medical, Inc. for $US 5.25 million in cash. Both companies understand such sale will be subject to higher and better bids that may be asserted and approved by the Bankruptcy Court.

The closing of this transaction is subject to the approval of the Bankruptcy Court and other conditions as described in the asset purchase agreement; and is expected to occur on an agreed-upon date no later than 10 business days following entry of a final Sale Order by the Bankruptcy Court.

Henry Fahman, Chairman and CEO of Providential Holdings, Inc., commented: "We are pleased to announce the filing of Chapter 11 Petition by Western Medical and look forward to the satisfaction of all the conditions associated with this transaction." Fahman added: "We believe the consummation of this acquisition will enable Western Medical management and staff to build an exceptional new company that will greatly benefit all stakeholders, including Providential Holdings shareholders, in the near future."

About Providential Holdings Inc.

Providential Holdings is a diversified holding company primarily engaged in mergers and acquisitions and independent energy business. The Company acquires and consolidates special opportunities in selective industries to create additional value, acts as an incubator for emerging companies and technologies, and provides financial consultancy and M&A advisory services to U.S. and foreign companies. For more information on Providential Holdings and its subsidiaries, visit http://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.

Contacts
Providential Holdings Inc.
Henry Fahman, 714-843-5455
www.phiglobal.com

____________________________

© Business Wire 2006