[WHITEHALL LOGO] NEWS RELEASE
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For: Whitehall Jewellers, Inc.
Contact: John R. Desjardins
Executive Vice President,
Chief Financial Officer
IMMEDIATE RELEASE TX: 312/762-9751
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WHITEHALL ANNOUNCES APPOINTMENT OF INTERIM CHIEF EXECUTIVE OFFICER
Chicago, Illinois, October 12, 2005 - Whitehall Jewellers, Inc. (NYSE:
JWL, the "Company") announced that, on October 11, 2005, the Board of Directors
elected Daniel H. Levy to serve as interim Chief Executive Officer, effective
immediately, while the Company conducts a search to find a permanent Chief
Executive Officer. Mr. Levy has served as a director of the Company since
January 7, 1997 (and had served as a director from March 1996 until May 1996.)
Mr. Levy, 62, has a long and distinguished career in the retail industry.
The Company also announced that Lucinda M. Baier resigned as President
and Chief Operating Officer. Mr. Levy commented, "The Company owes a great debt
of gratitude to Cindy for her steadfast service as President and Chief Operating
Officer. In addition, during very challenging times following the death of
former Chairman and Chief Executive Officer Hugh Patinkin, Cindy graciously
undertook the duties and responsibilities of Chief Executive Officer of the
Company. The Company wishes her the best in all of her future endeavors."
Whitehall Jewellers, Inc. is a national specialty retailer of fine
jewelry, operating 387 stores in 38 states. The Company operates stores in
regional and super regional shopping malls under the names Whitehall Co.
Jewellers, Lundstrom Jewelers and Marks Bros. Jewelers.
Safe Harbor Statement
This release contains certain forward-looking statements (as such term is
defined in Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934) and information relating to the Company that
are based on the current beliefs of management of the Company as well as
assumptions made by and information currently available to management including
statements related to the markets for our products, general trends and trends in
our operations or financial results, plans, expectations, estimates and beliefs.
In addition, when used in this release, the words "anticipate," "believe,"
"estimate," "expect," "intend," "plan," "predict," "opinion" and similar
expressions and their variants, as they relate to the Company or our management,
may identify forward-looking statements. Such statements reflect our judgment as
of the date of this release with respect to future events, the outcome of which
is subject to certain risks, including the factors described below, which may
have a significant impact on our business, operating results or financial
condition. Investors are cautioned that these forward-looking statements are
inherently uncertain. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results or
outcomes may vary materially from those described herein. The Company undertakes
no obligation to update forward-looking statements. The following factors, among
others, may impact forward-looking statements contained in this release: (1) our
ability to execute our business strategy and our continued net losses and
declines in comparable store sales; (2) our ability to manage our liquidity and
to obtain adequate financing on acceptable terms and the effect on us if an
event of
For Investor Relations info: investorrelations@whji.com
Internet Website: www.whitehalljewellers.com
default were to occur under any of the Company's financing arrangements; (3) a
change in economic conditions or the financial markets which negatively impacts
the retail sales environment and reduces discretionary spending on goods such as
jewelry; (4) reduced levels of mall traffic caused by economic or other factors;
(5) increased competition from specialty jewelry retail stores, the Internet and
mass merchant discount stores which may adversely impact our sales and gross
margin; (6) the high degree of fourth quarter seasonality of our business and
the impact on the Company's sales, profitability and liquidity; (7) the extent
and success of our merchandising, marketing and/or promotional programs; (8)
personnel costs and the extent to which we are able to retain and attract key
personnel and disruptions caused by the loss of key personnel; (9) the
availability, terms and cost of consumer credit; (10) relationships with
suppliers including the timely delivery to the Company of appropriate
merchandise on acceptable payment, delivery and other terms; (11) our ability to
maintain adequate information systems capacity and infrastructure; (12) our
leverage and cost of funds and changes in interest rates that may increase
financing costs; (13) developments relating to the Securities Purchase
Agreement, Notes, Warrants and Registration Rights Agreement with Prentice,
including the impact of any adverse developments with respect to such
agreements, that may require the Company to seek new financing, for which there
can be no assurance of availability on acceptable terms or at all; (14) our
ability to maintain adequate loss prevention measures; (15) fluctuations in raw
material prices, including diamond, gem and gold prices; (16) the impact of
current or future price reductions on margins and resultant valuation allowances
taken on certain merchandise inventory identified from time to time as items
which would not be part of the Company's future merchandise presentation as well
as alternative methods of disposition of this merchandise inventory and
resulting valuation allowances taken; (17) developments relating to settlement
of the consolidated Capital Factors actions, the non-prosecution agreement
entered into with the United States Attorney's Office, the SEC investigation,
and shareholder and other civil litigation, including the impact of such
developments on our results of operations and financial condition and
relationship with our lenders or with our vendors; (18) regulation affecting the
industry generally, including regulation of marketing practices; and (19) the
risk factors identified from time to time in our filings with the SEC.
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For Investor Relations info: investorrelations@whji.com
Internet Website: www.whitehalljewellers.com