Press Release Source: Providential Holdings, Inc.

Providential Acquires 20% Equity Stake in E-Check Recovery and Distributes Special Dividends
Tuesday July 13, 4:53 am ET

FOUNTAIN VALLEY, CA--(MARKET WIRE)--Jul 13, 2004 -- Providential Holdings, Inc. (OTC BB:PRVH.OB - News) (Berlin Stock Exchange and Frankfurt Stock Exchange: PR7, WKN 935160) (www.phiglobal.com) today announced that it has signed an agreement to acquire a 20% ownership of E-Check Recovery, Inc. (www.echeckrecover.com), a Texas corporation, in exchange for $25,000 worth of the Company's restricted common stock.
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The Company will distribute one-half of its holding in E-Check Recovery (10%) as a special dividend to PRVH shareholders of record as of July 30, 2004 and E-Check Recovery will start filing the necessary documents with the appropriate regulatory agencies to become a fully-reporting publicly-traded company.

E-Check Recovery, Inc. is a nationwide agency specializing in automated check recovery of NSF checks/closed accounts, check-by-phone, recurring debits and credits, one-time debits and credits, check verification/guarantee, check conversion point of sale, check conversion non point of sale, and payroll direct deposits through the use of its proprietary software and Mag Tek Micro imager.

E-Check Recovery was designed to accommodate all types of businesses both large and small including governmental agencies and utility companies offering a solution to their every day financial services by their strategic partners.

E-Check Recovery's software and check scanning hardware can scan conventional paper checks and transform them into an electronic transaction (ACH) making funds available within 24 to 48 hours as well as electronically deposit checks. Check data and check images are stored for future research and retrieval on re-submission of NSF checks and more.

E-Check Recovery's future includes the unprecedented multi function platform of services to be offered such as Payroll Debit Cards and Payroll Direct Deposits, Store Added Value Cards, Dual International Money Transfer Cards with PIN security, Phone Cards, Gift Cards, Debit/Credit Cards for ISO agreements, Paperless Payments (i.e. phone, water, electric, gas, auto tags, and cable bills) in order to reach a wider spectrum. URL: www.echeckrecover.com