Whitehall Enterprises Reports First Quarter Results; Company Profitable Before Incurring Subsidiary's Start-up Expenses.

Business Editors

MIAMI--(BUSINESS WIRE)--May 22, 2000

Whitehall Enterprises Inc. (OTCBB:WTHL) today reported its financial results for the first quarter ended March 31, 2000.

The figures show that Whitehall increased its revenues and earnings during the past six months and was profitable before incurring a $212,275 one-time cash outlay to launch the Web site for its Alternative Lending Group subsidiary.

For the first quarter, Whitehall reported revenues of $1,350,477 versus $1,395,864 for the same period in 1999. Revenues for the six-month period ended March 31, 2000 totaled $2,714,778, a more than 49% increase over the $1,819,257 reported in 1999. Whitehall's total operating revenues increased 109% from $373,366 in 1999 to $781,027 for the quarter ended March 31, 2000. For the six months ended March 31, 2000, total operating revenues were $1,101,422 compared to $473,104 in the comparable 1999 period, representing an increase of 140%. These increases can be attributed to the revenues provided from the company's Alternative Lending Group (ALG) subsidiary.

"During our shareholder meetings in January and February, we pledged to target our growth for 300% by year's end," said Whitehall President and Chief Executive Officer Luis Alvarez. "We are pleased to report a 300% increase in our early second quarter numbers. This is consistent with my expectations and I look forward to our additional growth during the company months," Alvarez added.

Whitehall's net loss for the quarter ended March 31, 2000 was $248,977 compared to a profit of $41,142 for the same quarter in 1999. The loss was the direct result of the company's introduction and roll out of its Alternative Lending.com Web site at www.alternativelending.com, which created many one-time expenses related to research, development, upstart Internet marketing fees and technology upgrades that will not be incurred again. Total net income loss for the six months ended March 31, 2000 was $721,099 (inclusive of the Board options issued) versus a $168 profit for the same period last year.

"We made the conscious decision to incur all start-up expenses for our Alternative Lending Group subsidiary in the first quarter," said Alvarez. "This ensures us the ability to immediately service our projected customer base and report a substantial profit for the next quarter," he added. "ALG also incurred several expenses directly related to the acquisition of Direct Financial L.L.C. that were not offset by revenues. Since the consolidation is complete, barring any unforeseen operational and/or industry changes, we expect ALG's revenues to increase by approximately 300% in the next quarter. This is consistent with the results already achieved in April which, in turn, are a direct result of the start-up investments made in this quarter," Alvarez concluded.

Cash assets increased from $2,264 in September 1999 to $142,575 for the six-month period ended March 31, 2000. Additionally, Whitehall's total asset value grew from $3,861,589 to $7,343,100, representing a $3,481,511 increase. Shareholder equity grew 163% or $1,784,796 from $1,089,514 for the six-month period ended Sept. 30, 1999 to $2,874,310 on March 31, 2000.

Whitehall Enterprises Inc. (OTCBB:WTHL) is a growth oriented holding company targeting business acquisitions, which will contribute a diversified asset base for the company. Whitehall Enterprises' current business activities include manufacturing of plastic containers for pharmaceutical and healthcare companies, marketing hair growth promotion and hair loss prevention technologies, and e-commerce mortgage banking.

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.