FOUNTAIN VALLEY, CA -- (MARKET WIRE) -- 06/30/04 -- Providential
Holdings, Inc. (OTC BB: PRVH) (Berlin Stock Exchange: PR7, WKN
935160) (www.phiglobal.com) today announced that it has officially
closed the transaction to acquire a 60% ownership stake in Tangshan
Yutian Saw Corporation (TYSC), www.ytsawblades.com (English) and www.ytsaw.com (Chinese), a leading Chinese manufacturer of circular
steel saw blades.Providential Holdings now owns 60% of the common stock of Tangshan
Yutian Saw Corporation in exchange for a $45 million non-interest
bearing note, due six months after the closing date. If any payment
of principal is not made on time, interest shall accrue at a rate
equal to five percent (5%) per annum on the balance until paid in
full or unless the maturity date is further extended by mutual
consent of both parties.
According to the terms of the transaction, Providential will be
responsible for taking TYSC public in the US and Europe within nine
months following the closing of the transaction. In addition,
Providential will assist TYSC to market its products outside of China
and access the Western capital markets to support TYSC's further
growth.
At a conservative estimate of $97,720,000 in revenues and $22,330,000
in net profits for Fiscal Year 2004, based on year-to-date
performance, and the current Price-Earnings ratio of 17.8 for the
Appliance and Tool industry, TYSC's market capitalization is expected
to surpass $395,000,000 as a publicly-traded company, or equivalent
to almost $20 per share with 20 million shares to be issued and
outstanding.
Henry Fahman, Chairman and CEO of Providential Holdings, commented,
"The closing of this transaction marks a major milestone in our
ability to execute our business plan and create significant value.
As part of our strategy, we will continue to acquire and consolidate
undervalued opportunities in various high-growth industries to further
increase value for our shareholders as well as our target business
partners. We expect to announce other imminent transactions regarding
our mergers and acquisitions activities in the near future. We also
plan to list our shares on the NASDAQ or a major exchange as soon as
it is feasible and will be taking big and bold steps to achieve these
goals."
About TYSC:
TYSC is Asia's largest steel rotary saw blade manufacturer. Its
products range from the household saw blades to those industrial
blades measuring more than six-feet in diameter and costing thousands
of dollars. These larger blades, hardened alloyed or diamond tipped,
are used to cut concrete blocks, canal channels, trenches, metal
bars, plates, timber, furniture wood and rocks. TYSC currently
employs more than 600 workers and its fixed assets include land,
buildings, and machine tools from Japan, Germany and USA. Its
mega-watt carbon dioxide lasers cut and anneal industrial saw blades
in round-the-clock production runs. The company occupies a land of
about 28 acres with a production area of about 800,000 square feet in
Hebei, China, about 100 miles from Beijing, the capital.
At the current exchange rate of 8.2766 Chinese Yuan per US dollar,
TYSC's revenues and net profits were $81,584,225 and $17,937,317 for
the year ended 2003, as compared to $68,264,745 and $14,377,685 for
the year ended 2002, respectively. While revenues grew 19.51% from
2002 to 2003, net profits grew 24.76% during the same period. For the
first five months of 2004, revenues were $40,717,200 and net profits
were $9,303,335, an equivalent of $97,721,286 and $22,328,000,
respectively, on an annualized basis for 2004.
URL's: www.ytsawblades.com (English) and www.ytsaw.com (Chinese)
About Providential:
Providential Holdings and its subsidiaries engage in a number of
diverse business activities, the most important of which is mergers
and acquisitions. The Company seeks to acquire and consolidate
undervalued opportunities in various high-growth industries to
maximize and sustain value for its shareholders and target partners
by combining expertise in both the product and capital markets.
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 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.
Contact:
Providential Holdings
Henry Fahman
714-849-1577 www.phiglobal.com
Tangshan Yutian Saw Corporation
An Fang Zhen
86-315-656-6358 www.ytsaw.com
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Due Da Due......But Be Quick About It!!!!!
DaDog
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