WTHL : WHITEHALL ENTERPRISES INC (OTC:BB)
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Whitehall Enterprises' Alternative Lending Group Subsidiary Enters Portal Marketing Agreement With America Online's Digital City
Appoints Chief Operating Officer
MIAMI--(BUSINESS WIRE)--Jan. 27, 2000--Whitehall Enterprises, Inc. (OTCBB: WTHL) today announced that its wholly-owned Alternative Lending Group, Inc. (ALG) subsidiary recently signed a multi-tiered portal marketing agreement with America Online's (AOL) Digital City. "ALG's new alliance with America Online's Digital City will allow the company to dramatically increase its exposure on the Internet almost immediately," said Whitehall President and Chief Executive Officer Luis Alvarez.
ALG is a multi-million-dollar e-commerce company currently operating in nine states, with plans to expand its market focus nationally during the next 12 months. The Company closed mortgage origination fees grossing $93.5 million for the year ended December 1999, and has budgeted $1 million to support its national expansion, a portion of which is earmarked for promotion on Digital City.
With an average of 500,000 hits per Digital City site, per month alternativelending.com has already seen a tremendous increase in traffic and number of hits to its website. Alternative Lending has agreed to market in 10 of the 64 AOL Digital Cities nationwide, comprising 3.95 million total AOL users. Those cities include Denver, Detroit, Grand Rapids, Indianapolis, Kansas City, Milwaukee, Phoenix, Salt Lake City and the Twin Cities (Minneapolis and St. Paul). The 10 AOL Digital Cities combined had 19.6 million page views during December 1999.
"Aligning ourselves with the number one Internet access provider was one of our top marketing strategies," said Jonathan V. Reece, ALG Vice President, Wholesale/Internet Division. "As we increase our sales territory over the next 12 months to cover all 50 states, we will systematically add additional AOL Digital Cities, providing those mortgage customers the ability to apply for all types of loans, 24 hours a day, via the Internet."
ALG's mortgage origination activities are conducted through a consumer direct marketing channel, which allows the company to make loans simultaneously profitable and competitive due to a reduction in sales commissions and expenses compared to those associated with conventional mortgage brokerage firms.
In a related announcement, Alternative Lending Group has appointed Michael J. Matney Chief Operating Officer. Prior to joining ALG, Matney served as Vice President of Wholesale Sub-Prime Acquisitions for Bank One Financial Services, Inc., where he was responsible for overseeing 2,000+ units totaling $100+ million in monthly revenue. Matney also served as Bank One's Vice President and Regional Director of Retail Sub-Prime Originations, where he managed seven branches with 55 employees and $125 million in assets. He received Bank One's President's Award in 1994 and 1995 for Branch of the Year. "The addition of Mr. Matney to our team, who brings eight years of solid experience with one of the largest bankers in the industry, is the next vital step in our strategy to becoming a powerhouse in the online mortgage industry," said ALG President and Chief Executive Officer R. Jeffrey Mertz.
Whitehall Enterprises, Inc. (OTCBB: WTHL) is a growth oriented holding company targeting business acquisitions which will contribute a diversified asset base for the company. The company's current business activities include manufacturing of plastic containers for pharmaceutical and healthcare companies as well as marketing hair growth and hair loss prevention technologies.
America Online is the number one Internet access provider in the world. America Online's Digital City is the nation's largest locally-focused online network, delivering locally relevant news, community resources, entertainment and commerce to 60 cities and growing. The website is located at www.digitalcity.com.
Safe Harbor: 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 relating 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, Inc. For a description of additional risks and uncertainties, please refer to Whitehall Enterprises, Inc. filings with the Securities and Exchange Commission, including Forms 10K and 10Q.
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