EXHIBIT 99.1

                                October 27, 2005


Mr. Mark Schwarz
Managing Member
Newcastle Partners, L.P.
300 Crescent Court, Suite 1110
Dallas, TX 75201

Dr. Mr. Schwarz:

         I am writing on behalf of the Special Committee of the Board of
Directors of Whitehall Jewellers, Inc., in response to your letter dated October
26, 2005, in which Newcastle offered to acquire Whitehall through an appropriate
acquisition entity by merger or otherwise, for $1.10 per share in total.

         This letter is to advise you that, on advice of our financial advisors
and counsel, the Board has determined it cannot conclude, from the information
provided in your letter to the Board, through its Special Committee, that your
proposal is reasonably likely to result in a Superior Proposal, within the
meaning of the exclusivity provision of the Securities Purchase Agreement dated
as of October 3, 2005.

         We thank you for your proposal and appreciate your interest in
Whitehall.



                                                 Yours truly,



                                                 Daniel Levy