As previously reported on February 5, 2008, W Holding Company, Inc. (“W Holding” or the “Company”), the financial holding company of Westernbank Puerto Rico (“Westernbank”), determined that the financial statements of the Company for the year ended December 31, 2006 and for the quarters ended September 30, 2006 and March 31, 2007, would need to be restated for the correction of an error to recognize the impact of adjustments resulting from the Inyx loan impairment over such periods.

The Company also determined at that time that (i) the previously filed annual consolidated financial statements of the Company for the year ended December 31, 2006 included in the Company’s annual report on Form 10-K for the year ended December 31, 2006; (ii) the related reports of its independent registered public accountants; and (iii) the interim condensed consolidated financial statements for the quarters ended September 30, 2006 and March 31, 2007 included in the Company’s quarterly reports on Forms 10-Q, should no longer be relied upon.

In connection with its continuing analysis of matters related to the Inyx loan impairment and the restatements described above, on August 22, 2008, the Company concluded, and the Audit Committee approved, that: (i) the previously filed annual consolidated financial statements of the Company for the year ended December 31, 2005; (ii) the related reports of its independent registered public accountants; and (iii) the interim condensed consolidated financial statements for the quarters ended March 31, 2006 and June 30, 2006 included in the Company’s quarterly reports on Forms 10-Q, should no longer be relied upon.

The Company’s management has discussed these matters with Deloitte & Touche LLP, the Company’s independent registered public accountant.

The Company continues to work expeditiously toward the completion of the restatement process and the issuance of its consolidated financial statements for the year ended December 31, 2007. At this time the Company is unable to estimate when the process will be completed.