[0] Whitehall Enterprises, Inc. Reports 1st Quarter Fiscal 2001 Income From Operations of $51,046.

Business Editors

MIAMI--(BUSINESS WIRE)--Feb. 21, 2001

Whitehall Enterprises, Inc., (OTCBB:WTHL) announced today that income from operations for the first quarter 2001 was $51,046 and net cash provided by operating activities for the quarter was $1,895,878. Revenue for the Company's first quarter 2001 was up to $2,220,796, up 62% from $1,364,301 in the first quarter 2000. Expenses for the quarter were $2,169,750. Net loss for the first quarter 2001 was $25,181 or $0.0002 per share, compared to a loss of $472,121 for the same period one year ago.

The Company's total assets decreased 8% for the 2001 first quarter to $9,299,944, from $10,133,813. This decrease in assets is mainly attributable to the restructuring of ALG's wholesale division implemented by the Company's new management. The restructuring not only decreased the Company's loan inventory by $1,540,259 for the quarter but it also reduced the Company's risk of holding long term mortgage notes during fluctuating market climates. The Company's total liabilities decreased $1,244,465 for the period to $5,810,841 versus $7,055,306 for the same period year ago. The shareholders equity increased $410,596 or 13%, up from $3,078,507 last year to $3,489,103 this year.

"I am extremely pleased with the first quarter results and I strongly believe that they further support several key decisions that were implemented during the fourth quarter of 2000, beginning with my decision to change the management of ALG. These results not only justify the appointment of James Mack as president of ALG, but also demonstrate Mr. Mack's management abilities and commitment to our mortgage operations," said Whitehall President and CEO Luis Alvarez.

"The current market conditions combined with our efficient cost structure are proving to be very favorable for continued revenue and profit growth," said ALG's new President James P. Mack. "I am excited about the prospects of our Company going forward in 2001 and beyond. ALG has a sense of direction and purpose that was not present until just recently. We have a very focused management team in place as well as a sales and support staff that is dedicated to improving the overall success of our operations. I feel that Alternative Lending Group is closer than ever in providing Whitehall with the type of operating results that were originally envisioned," concluded Mr. Mack.

Furthermore, Whitehall Enterprises wishes to address the derogatory public statement that was published on behalf of Jeffrey Mertz, the former president of ALG. After the Company decided to change the management of ALG, Mr. Mertz filed a lawsuit against Whitehall on November 14th 2000, but shortly thereafter voluntarily withdrew the lawsuit at the Company's demand.

As reported in the Company's 10-K, on December 20, 2000 the Company filed in the Superior Court of the state of Arizona, a lawsuit styled Whitehall Enterprises, Inc., a Delaware corporation; and Alternative Lending Group, Inc., an Illinois corporation, Plaintiffs, v. R. Jeffrey Mertz and Kelly Mertz, husband and wife, Defendants., Case number CV2000-022536. The Company encourages the public to read all documents filed with the court.

The Company's complaint charges that Mr. Mertz converted Company property, and as a result of his misdeeds, the Company terminated him. Whitehall intends to amend its claims to include slander and to recover damages caused to Whitehall and ALG's business operation. The Company believes that Mr. Mertz re-filed the complaint against Whitehall in an effort to divert attention away from his actions and perhaps, in order to compel the Company into an unfavorable settlement.

"I believe that Mr. Mertz is obviously embarrassed and frustrated by the current situation and feels that re-filing this lawsuit is the only way he can save face among friends and family as well as compel the Company into settling. The Company will not pursue a settlement with Mr. Mertz until such time that the Company recovers all monies lost as a consequence of his actions," said Whitehall's President and CEO, Luis Alvarez.

The Company believes that it is in its own best interest to resolve this matter in the Arizona courts, rather than by a trial of press releases. "We do not believe that it would be beneficial to dignify any future public statements by Mr. Mertz with a response. Accusations made to the press need not stand to the scrutiny of a court of law. That said, the Company is prepared to protect its good name and those of the officers of ALG and their spouses that have been wrongfully targeted by Mr. Mertz as defendants in the lawsuit filed by him," said Mr. Alvarez.

"Our first quarter financials positively show shareholders what new management was able to do in 50 days of a quarter and what a company like ALG can offer when run properly," concluded Mr. Alvarez.

About Whitehall Enterprises

Whitehall Enterprises Inc. (OTCBB:WTHL) is a growth oriented holding company targeting business acquisitions, which will contribute a diversified asset base and positive cash-flow for the company and its $71 million tax loss carry-forward. Whitehall Enterprises' current business activities include marketing of hair growth stimulation and hair loss prevention technologies, a state-of-the-art medical diagnosis software, and also offering mortgage banking services within 12 states of the U.S., including the issuance of residential title insurance policies.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this news release (as well as information included in oral statements or other written statements made or to be made by Whitehall Enterprises, Inc.) contains statements that are forward-looking, such as statements related to consummation of the transaction, anticipated future revenues of the companies and success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Whitehall Enterprises. For a description of additional risks and uncertainties, please refer to Whitehall Enterprises, Inc.'s filings with the Securities and Exchange Commission, including Forms 10K and 10-Q.