THE FINANCIAL HOLDING COMPANY OF
WESTERNBANK PUERTO RICO
MAKES A SPECIAL DISTRIBUTION OF $35.5 MILLION 
IN THE FORM OF A STOCK DIVIDEND TO STOCKHOLDERS OF RECORD AS OF 
NOVEMBER 28, 2003

Mayagüez, Puerto Rico, November 11, 2003. W HOLDING COMPANY, INC. (NYSE: "WHI"), the financial holding company of WESTERNBANK PUERTO RICO, announced today that at an extraordinary meeting held today November 11, 2003, the Company’s Board of Directors approved a special common stock distribution with an approximate fair value of $35,507,000 in the form of a 2% stock dividend. The stock dividend will be paid on December 10, 2003, simultaneously with the three-for-two (3 x 2) stock split announced last week enhancing the holdings of the stockholders of record as of November 28, 2003.

The stock dividend will have the effect of permanently capitalizing approximately $35.5 million of the Company’s retained earnings in the hands of and for the benefit of its shareholders. The Company will pay cash to the stockholders in lieu of fractional shares at a rate equal to the closing price of the stock as of the record date, November 28, 2003.

Commenting on this action, Frank C. Stipes, Chairman of the Board, Chief Executive Officer and President, stated: " In addition to the three-for-two (3 x 2) stock split announced last week, the Company’s Board of Directors decided to declare this distribution of approximately $35.5 million in the form of a 2% stock dividend to further enhance our shareowners value. Our shareowners have benefited tremendously from the consistent performance of our Company and corresponding increase in its share value. Actions such as today’s, and last week’s stock split, are consistent with the Board of Directors' desire to make each of our stockowners direct participants of our Company’s continued success by rewarding them with cash dividends paid on a monthly basis and a greater participation in its equity.”

“To the stockholders of our Company, this represents the best of all worlds. During the year the stock had a dividend payment increase of 23% over the year before, in line with past year to year increases between 22% and 33%, for a cumulative increase for the last nine years of 1,297%, payable monthly throughout the year; a 3 X 2 stock split to add greater liquidity increasing the total number of shares outstanding and providing a more affordable price per share; a year-to-date increase of approximately 60% in its market valuation and a cumulative increase of well over 14,500% since the Company went public almost 18 years ago, without considering the uninterrupted payment of dividends throughout this period; and last but not least, a distribution of approximately $35.5 million of retained earnings of the Company, placed in the hands of its shareholders by way of this generous stock dividend grant,” said Stipes.

W HOLDING COMPANY, INC. is among the three largest public financial holding companies headquartered in Puerto Rico, based on total assets. WESTERNBANK PUERTO RICO operates throughout Puerto Rico through 51 full fledged branches, including 33 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.