INCREASES ITS DIVIDEND PAYMENT TO STOCKHOLDERS FOR ITS
NINTH CONSECUTIVE YEAR, FOR A CUMULATIVE INCREASE OF 1,297.25%

Mayagüez, Puerto Rico, January 31, 2003. W HOLDING COMPANY, INC. (NYSE: WHI), the financial holding company of WESTERNBANK PUERTO RICO, announced today that at a meeting held today, the Board of Directors approved a dividend payment increase of 22.73% on the Company’s common stock for those to be declared during 2003, equal to $0.27 per share in line with the Company’s dividend payment guidelines.

Dividends are to be paid on the 15th day of each month to stockholders of record as of the last day of the preceding month. Relative to last year’s earnings, this increase represents a 21.47% distribution to our common stockholders, therefore retaining for the Company’s expansion and growth the remaining 78.53%.

Commenting on this action, Frank C. Stipes, Esq., Chairman of the Board, President and Chief Executive Officer of the Company, stated: “This increase is the ninth consecutive dividend payment increment in the last nine years for a cumulative increase of 1,297.25% during such period. For those stockholders residents of Puerto Rico, this is an excellent benefit being this the only publicly trade company that pays dividends on its common stock on a monthly basis, with the additional benefit that they are subject, under current law, to only a 10% Puerto Rico tax”.

As of December 31, 2002, W HOLDING reported a substantial increase of 56.65% in its net income for the 2002 fourth quarter as compared to the prior year and a solid growth of 38.98% in total assets, breaking the $8.0 billion barrier. As of the same date, it had the lowest delinquency ratio amongst all Banks in Puerto Rico, with a 0.51% ratio (less than half of 1.00%) of non-performing loan to total loans and a reserve coverage ratio of 242.80% (which represents about $2.43 for every non-performing dollar in the loan portfolios). For the year ended December 31, 2002, W HOLDING also had an outstanding and world-class efficiency ratio of 39.15%, which is reputed excellent under any standard.

Mr. Stipes warned however that “forward-looking statements with respect to future financial conditions, results of operations and businesses of the Company are always subject to various risk and market factors out of management’s control which could cause future results to differ materially from current management expectations or estimates and as such should be understood, and not taken as carved in stone. Such factors include particularly, but are not limited, to the possibility of prolonged adverse economic conditions or that an adverse interest rate environment could develop.”

Westernbank Puerto Rico, the wholly-owned subsidiary of W HOLDING COMPANY, INC., is the third largest locally controlled banking entity headquartered in Puerto Rico, in term of total assets operating throughout Puerto Rico through 50 full fledged branches, including 32 in the Southwestern region of Puerto Rico, 7 in the Northeastern region, and 11 at the San Juan Metropolitan area of Puerto Rico. W HOLDING COMPANY, INC. also owns Westernbank Insurance Corp., a general insurance agent placing property, casualty, life and disability insurance, whose results of operations and financial condition are reported on a consolidated basis. The company stock is traded in the New York Stock Exchange (NYSE) under the symbol of WHI.