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Providence Group is a private equity fund which focuses on assisting micro-cap to middle market companies with their private equity and investment banking needs. Our firm provides a wide variety of advisory-based services in the area of mergers and acquisitions, initial public offerings, reverse mergers, buying a business and selling a business. Our clients consist primarily of smaller companies that are frequently overlooked by larger investment banks.

Providence Group will consider investment in micro-cap companies that meet its fund criteria. The fund focuses on smaller companies with good fundamentals that may be too small for investment considerations by larger private equity funds.

Providence Group believes in the following Business Principles:

Our Business Principles

1. We Think of Our Investors as Long-Term Partners. Regardless of our corporate or investment structure, we hope that you will visualize yourself as a long-term partner with us in our business, and we would like to keep you as our partner for a lifetime, just as if your investment in our company is a part of your family business. We hope that you will embrace this long-term partnership concept with us.

2. Our Wealth is Tied Up With Yours. We are principles and co-owners with our investors in our companies. This is our business and our livelihood. Although we cannot guarantee results, at least you know that we have our wealth on the line along with yours. We make money when our partners make money, and if a particular transaction loses money, we take a haircut.

3. We Are Long-Term Players. Although our strategies may include a sale or liquidation, an IPO, or other exit-based strategies, we are, by and large, adopting a �buy and hold� approach with respect to our investment portfolio and, where practical, will try to retain our corporate portfolio base.

4. We Will Pay a Fair Price for Larger Interests. While we generally maintain a right to increase our interest in any company in our portfolio by purchasing shares as they become available, the price that we will pay for our increased shares will always be a fair market price on a per-share basis. We believe in the companies that we are holding, and our increased exposure should increase the comfort of our investors. We may not pay a premium for these shares, but we will not pay our investors a price for shares lower than the price that any objective and informed third party investor would pay.

5. Our Objective is to Acquire Corporate Assets. Our game plan involves seeking out good, solid companies in basic industries with management teams in place with a solid asset base, low debt, and high earnings among a diversified customer base. We are particularly interested in companies in which commercial or industrial real estate is involved. Our goal is to purchase these companies together with company management, thus building a portfolio of well-managed businesses to the financial benefit of our investors, our employees, and to ourselves.

6. We Use Debt Sparingly. We manage a leveraged buyout fund, and by its nature our Fund uses debt for the purposes of corporate acquisitions, however, we do not seek to leverage our companies to the hilt. Our long-term objective is to maintain a corporate portfolio with companies that generally have a low asset to debt ratio. When we do borrow, we attempt to structure our loans on a long-term, fixed rate basis. We�d rather get a good night�s sleep.

7. We Seek Shareholder Value Over Distributions. While we make distributions to our shareholders, we will typically choose to plow earnings back into the Company. This is because we believe that the capital decisions that we make should generate far more than a dollar of value for each dollar retained, and this will be reflected in an increased intrinsic business value through capital gains, which subsequently increases your wealth as well as ours.

8. We Do Not Consolidate Our Earnings Reports. We believe that consolidated earnings reports may reveal little about how well our business is doing. While we will summarize the numbers, our reports are provided to you on a company-by-company basis so that you can see how each company in our portfolio is doing.

9. We Try to be Candid in our Reporting. If a company loses money, or we have a bad financial period, we would rather tell you the financial facts in the same way that we would want to know them if you were reporting to us. We do not seek to �smooth over� results. We feel that our long run conservative policy of building a solid corporate asset base will overcome any bumps in the road to true wealth creation.

10. It is Better to Give than to Receive. We support charitable causes that we believe are worthy of support. In the words of Jacob Marley, �Mankind was my business. The common welfare was my business; charity, mercy, forbearance, and benevolence, were all my business. ...� We don�t want to wait until we are spirits to give wealth away.

Our offices are located at:

950 Jericho Turnpike
Westbury, NY 11590-1512
Tel: 516-822-9100
Fax: 516-942-4330

To learn more about us, email us, or call us at (516) 822-9100.

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