SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549
                                 --------------

                                  SCHEDULE 13D
                                 (Rule 13d-101)

             INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
            TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
                                  RULE 13d-2(a)

                              (Amendment No. 8)(1)

                            Whitehall Jewellers, Inc.
                            -------------------------
                                (Name of Issuer)

                          Common Stock, $.001 Par Value
                          -----------------------------
                         (Title of Class of Securities)

                                  965 063 10 0
                                  ------------
                                 (CUSIP Number)

                              STEVEN WOLOSKY, ESQ.
                 OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
                                Park Avenue Tower
                               65 East 55th Street
                            New York, New York 10022
                                 (212) 451-2300
                                 --------------
                  (Name, Address and Telephone Number of Person
                Authorized to Receive Notices and Communications)

                                 January 9, 2005
                                 ---------------
             (Date of Event Which Requires Filing of This Statement)

         If the filing person has  previously  filed a statement on Schedule 13G
to report the  acquisition  that is the  subject of this  Schedule  13D,  and is
filing this schedule because of Rule 13d-1(e),  13d-1(f) or 13d-1(g),  check the
following box /X/.

         NOTE.  Schedules  filed in paper format shall include a signed original
and five copies of the  schedule,  including  all  exhibits.  See Rule 13d-7 for
other parties to whom copies are to be sent.

                         (Continued on following pages)

                              (Page 1 of 20 Pages)

- --------
(1)  The  remainder  of this  cover  page  shall be filled  out for a  reporting
person's  initial  filing on this  form with  respect  to the  subject  class of
securities,  and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.

     The  information  required on the remainder of this cover page shall not be
deemed to be "filed"  for the purpose of Section 18 of the  Securities  Exchange
Act of 1934 or otherwise  subject to the  liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  SEE the
NOTES).



- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 2 of 20 Pages
- ---------------------                                     ----------------------

================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                          NEWCASTLE PARTNERS, L.P.
- --------------------------------------------------------------------------------
    2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*        (a) /X/
                                                                        (b) / /
- --------------------------------------------------------------------------------
    3          SEC USE ONLY

- --------------------------------------------------------------------------------
    4          SOURCE OF FUNDS*
                    WC
- --------------------------------------------------------------------------------
    5          CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
               TO ITEM 2(d) OR 2(e)                                         / /
- --------------------------------------------------------------------------------
    6          CITIZENSHIP OR PLACE OF ORGANIZATION

                    TEXAS
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  2,018,400
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   - 0 -
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              2,018,400
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              - 0 -
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                    2,018,400
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
               SHARES*                                                      / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    12.0%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    PN
================================================================================
                      *SEE INSTRUCTIONS BEFORE FILLING OUT!


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 3 of 20 Pages
- ---------------------                                     ----------------------

================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                          NEWCASTLE CAPITAL MANAGEMENT, L.P.
- --------------------------------------------------------------------------------
    2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*        (a) /X/
                                                                        (b) / /
- --------------------------------------------------------------------------------
    3          SEC USE ONLY

- --------------------------------------------------------------------------------
    4          SOURCE OF FUNDS*
                    OO
- --------------------------------------------------------------------------------
    5          CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
               TO ITEM 2(d) OR 2(e)                                         / /
- --------------------------------------------------------------------------------
    6          CITIZENSHIP OR PLACE OF ORGANIZATION

                    TEXAS
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  2,018,400
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   - 0 -
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              2,018,400
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              - 0 -
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                    2,018,400
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
               SHARES*                                                      / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    12.0%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    PN
================================================================================
                      *SEE INSTRUCTIONS BEFORE FILLING OUT!


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 4 of 20 Pages
- ---------------------                                     ----------------------

================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                          NEWCASTLE CAPITAL GROUP, L.L.C.
- --------------------------------------------------------------------------------
    2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*        (a) /X/
                                                                        (b) / /
- --------------------------------------------------------------------------------
    3          SEC USE ONLY

- --------------------------------------------------------------------------------
    4          SOURCE OF FUNDS*
                    OO
- --------------------------------------------------------------------------------
    5          CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
               TO ITEM 2(d) OR 2(e)                                         / /
- --------------------------------------------------------------------------------
    6          CITIZENSHIP OR PLACE OF ORGANIZATION

                    TEXAS
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  2,018,400
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   - 0 -
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              2,018,400
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              - 0 -
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                    2,018,400
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
               SHARES*                                                      / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    12.0%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    OO
================================================================================
                      *SEE INSTRUCTIONS BEFORE FILLING OUT!

- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 5 of 20 Pages
- ---------------------                                     ----------------------

================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                          JWL ACQUISITION CORP.
- --------------------------------------------------------------------------------
    2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*        (a) /X/
                                                                        (b) / /
- --------------------------------------------------------------------------------
    3          SEC USE ONLY

- --------------------------------------------------------------------------------
    4          SOURCE OF FUNDS*

- --------------------------------------------------------------------------------
    5          CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
               TO ITEM 2(d) OR 2(e)                                         / /
- --------------------------------------------------------------------------------
    6          CITIZENSHIP OR PLACE OF ORGANIZATION

                    DELAWARE
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   - 0 -
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              - 0 -
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                    - 0 -
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
               SHARES*                                                      / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    0%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    CO
================================================================================
                      *SEE INSTRUCTIONS BEFORE FILLING OUT!


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 6 of 20 Pages
- ---------------------                                     ----------------------

================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                          MARK E. SCHWARZ
- --------------------------------------------------------------------------------
    2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*        (a) /X/
                                                                        (b) / /
- --------------------------------------------------------------------------------
    3          SEC USE ONLY

- --------------------------------------------------------------------------------
    4          SOURCE OF FUNDS*
                    OO
- --------------------------------------------------------------------------------
    5          CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
               TO ITEM 2(d) OR 2(e)                                         / /
- --------------------------------------------------------------------------------
    6          CITIZENSHIP OR PLACE OF ORGANIZATION

                    USA
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  2,018,400
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   - 0 -
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              2,018,400
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              - 0 -
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                    2,018,400
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
               SHARES*                                                      / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    12.0%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    IN
================================================================================
                      *SEE INSTRUCTIONS BEFORE FILLING OUT!


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 7 of 20 Pages
- ---------------------                                     ----------------------

================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                          STEVEN J. PULLY
- --------------------------------------------------------------------------------
    2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*        (a) /X/
                                                                        (b) / /
- --------------------------------------------------------------------------------
    3          SEC USE ONLY

- --------------------------------------------------------------------------------
    4          SOURCE OF FUNDS*

- --------------------------------------------------------------------------------
    5          CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
               TO ITEM 2(d) OR 2(e)                                         / /
- --------------------------------------------------------------------------------
    6          CITIZENSHIP OR PLACE OF ORGANIZATION

                    USA
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   - 0 -
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              - 0 -
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                    - 0 -
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
               SHARES*                                                      / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    0%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    IN
================================================================================
                      *SEE INSTRUCTIONS BEFORE FILLING OUT!


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 8 of 20 Pages
- ---------------------                                     ----------------------

================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                          JOHN P. MURRAY
- --------------------------------------------------------------------------------
    2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*        (a) /X/
                                                                        (b) / /
- --------------------------------------------------------------------------------
    3          SEC USE ONLY

- --------------------------------------------------------------------------------
    4          SOURCE OF FUNDS*

- --------------------------------------------------------------------------------
    5          CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
               TO ITEM 2(d) OR 2(e)                                         / /
- --------------------------------------------------------------------------------
    6          CITIZENSHIP OR PLACE OF ORGANIZATION

                    USA
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   - 0 -
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              - 0 -
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                    - 0 -
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
               SHARES*                                                      / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    0%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    IN
================================================================================
                      *SEE INSTRUCTIONS BEFORE FILLING OUT!


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 9 of 20 Pages
- ---------------------                                     ----------------------

================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                          MARK A. FORMAN
- --------------------------------------------------------------------------------
    2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*        (a) /X/
                                                                        (b) / /
- --------------------------------------------------------------------------------
    3          SEC USE ONLY

- --------------------------------------------------------------------------------
    4          SOURCE OF FUNDS*

- --------------------------------------------------------------------------------
    5          CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
               TO ITEM 2(d) OR 2(e)                                         / /
- --------------------------------------------------------------------------------
    6          CITIZENSHIP OR PLACE OF ORGANIZATION

                    USA
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   - 0 -
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              - 0 -
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                    - 0 -
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
               SHARES*                                                      / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    0%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    IN
================================================================================
                      *SEE INSTRUCTIONS BEFORE FILLING OUT!


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 10 of 20 Pages
- ---------------------                                     ----------------------

================================================================================
     1         NAME OF REPORTING PERSONS
               I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                          CLINTON J. COLEMAN
- --------------------------------------------------------------------------------
    2          CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*        (a) /X/
                                                                        (b) / /
- --------------------------------------------------------------------------------
    3          SEC USE ONLY

- --------------------------------------------------------------------------------
    4          SOURCE OF FUNDS*

- --------------------------------------------------------------------------------
    5          CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
               TO ITEM 2(d) OR 2(e)                                         / /
- --------------------------------------------------------------------------------
    6          CITIZENSHIP OR PLACE OF ORGANIZATION

                    USA
- --------------------------------------------------------------------------------
 NUMBER OF         7     SOLE VOTING POWER
   SHARES
BENEFICIALLY                  - 0 -
  OWNED BY     -----------------------------------------------------------------
    EACH           8     SHARED VOTING POWER
 REPORTING
PERSON WITH                   - 0 -
               -----------------------------------------------------------------
                   9     SOLE DISPOSITIVE POWER

                              - 0 -
               -----------------------------------------------------------------
                  10     SHARED DISPOSITIVE POWER

                              - 0 -
- --------------------------------------------------------------------------------
    11         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

                    - 0 -
- --------------------------------------------------------------------------------
    12         CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
               SHARES*                                                      / /
- --------------------------------------------------------------------------------
    13         PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

                    0%
- --------------------------------------------------------------------------------
    14         TYPE OF REPORTING PERSON*

                    IN
================================================================================
                      *SEE INSTRUCTIONS BEFORE FILLING OUT!


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 11 of 20 Pages
- ---------------------                                     ----------------------

         The following  constitutes  Amendment No. 8 ("Amendment  No. 8") to the
Schedule 13D filed by the undersigned.  This Amendment No. 8 amends the Schedule
13D as specifically set forth.

         Item 4 is hereby amended to add the following:

         On January 9, 2006,  Newcastle Partners,  L.P.  ("Newcastle")  issued a
press release announcing the elimination of the financing  condition to its cash
tender  offer  for  Whitehall  Jewellers,   Inc.'s  ("Whitehall")  common  stock
requiring that there be a refinancing,  acceptable to Newcastle,  of Whitehall's
senior credit facility or a consent to the tender offer and the potential merger
thereafter by the lenders under  Whitehall's  senior credit  facility.  With the
elimination of this  condition,  Newcastle now believes that the majority of the
remaining  conditions to its tender offer are now in the control of the Board of
Directors of Whitehall. In the press release, a copy of which is attached hereto
as Exhibit 8 and incorporated herein by reference, Newcastle also announced that
it received a letter from  Whitehall's  Board of Directors  again  rejecting the
Newcastle offer and that Newcastle had responded to such letter, a copy of which
is contained in Exhibit 8.

         Item 7 is hereby amended to add the following exhibit:

         8. Press Release issued by Newcastle  Partners,  L.P., dated January 9,
2006.


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 12 of 20 Pages
- ---------------------                                     ----------------------

                                   SIGNATURES

         After  reasonable  inquiry and to the best of his knowledge and belief,
each of the  undersigned  certifies  that  the  information  set  forth  in this
Statement is true, complete and correct.

Dated:   January 10, 2006             NEWCASTLE PARTNERS, L.P.

                                      By: Newcastle Capital Management, L.P.,
                                          its General Partner

                                      By: Newcastle Capital Group, L.L.C.,
                                          its General Partner

                                      By: /s/ Mark E. Schwarz
                                          ------------------------------------
                                          Mark E. Schwarz, Managing Member


                                      NEWCASTLE CAPITAL MANAGEMENT, L.P.

                                      By: Newcastle Capital Group, L.L.C.,
                                          its General Partner

                                      By: /s/ Mark E. Schwarz
                                          -------------------------------------
                                          Mark E. Schwarz, Managing Member


                                      NEWCASTLE CAPITAL GROUP, L.L.C.


                                      By: /s/ Mark E. Schwarz
                                          -------------------------------------
                                          Mark E. Schwarz, Managing Member


                                      JWL ACQUISITION CORP.

                                      By: /s/ John P. Murray
                                         ---------------------------------------
                                         John P. Murray, President


                                      /s/ Mark E. Schwarz
                                      -----------------------------------------
                                      MARK E. SCHWARZ


                                      /s/ Steven J. Pully
                                      ------------------------------------------
                                      STEVEN J. PULLY

- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 13 of 20 Pages
- ---------------------                                     ----------------------


                                      /s/ John P. Murray
                                      ------------------------------------------
                                      JOHN P. MURRAY


                                      /s/ Mark A. Forman
                                      ------------------------------------------
                                      MARK A. FORMAN

                                      /s/ Clinton J. Coleman
                                      ------------------------------------------
                                      CLINTON J. COLEMAN


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 14 of 20 Pages
- ---------------------                                     ----------------------

                                  EXHIBIT INDEX
                                  -------------

Exhibit                                                                     Page
- -------                                                                     ----
1.    Joint Filing Agreement by and among Newcastle Partners,  L.P.,         --
      Newcastle Capital Management,  L.P.,  Newcastle Capital Group,
      L.L.C.  and Mark E. Schwarz,  dated April 18, 2005 (previously
      filed).

2.    Joint Filing Agreement by and among Newcastle Partners,  L.P.,         --
      Newcastle Capital Management,  L.P.,  Newcastle Capital Group,
      L.L.C.,  Mark E.  Schwarz and Steven J.  Pully,  dated July 6,
      2005 (previously filed).

3.    Letter to the Special  Committee  of the Board of Directors of         --
      Whitehall Jewellers,  Inc., dated October 26, 2005 (previously
      filed).

4.    Joint Filing Agreement by and among Newcastle Partners,  L.P.,         --
      Newcastle Capital Management,  L.P.,  Newcastle Capital Group,
      L.L.C.,  Mark E. Schwarz,  Steven J. Pully and John P. Murray,
      dated November 29, 2005 (previously filed).

5.    Director Nomination Letter to Whitehall Jewellers, Inc., dated         --
      December 13, 2005 (previously filed)

6.    Joint Filing and Solicitation Agreement by and among Newcastle         --
      Partners, L.P., Newcastle Capital Management,  L.P., Newcastle
      Capital Group, L.L.C., JWL Acquisition Corp., Mark E. Schwarz,
      Steven J.  Pully,  John P.  Murray,  Mark A.  Forman,  Mark J.
      Morrison  and Clinton J.  Coleman,  dated  December  13, 2005.
      (previously filed)

7.    Press  Release  issued  by  Newcastle  Partners,  L.P.,  dated         --
      January 5, 2006. (previously filed)

8.    Press  Release  issued  by  Newcastle  Partners,  L.P.,  dated      15 to 20
      January 9, 2006.


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 15 of 20 Pages
- ---------------------                                     ----------------------

PRESS RELEASE

CONTACTS:
Daniel H. Burch (212)-929-5748
Jeanne M. Carr (212)-929-5916
MacKenzie Partners, Inc.

FOR IMMEDIATE RELEASE:
- ---------------------

               NEWCASTLE PARTNERS ELIMINATES FINANCING CONTINGENCY
          AND CALLS ON BOARD TO NEGOTIATE WITH NEWCASTLE IN GOOD FAITH

         DALLAS,  TX -  JANUARY  9,  2006 --  Today,  Newcastle  Partners,  L.P.
announced that it has eliminated the financing contingency from its tender offer
to purchase all of the  outstanding  shares of Whitehall  Jewellers,  Inc. (Pink
Sheets:  JWLR) for $1.50 per share in cash.  With the removal of this condition,
all of the  conditions to the offer are now truly in the control of  Whitehall's
Board of Directors.

         Newcastle  Partners,  through its whole-owned  subsidiary,  commenced a
cash tender  offer to purchase  all of the  outstanding  shares of  Whitehall on
December 5, 2005. On January 4, 2006, Newcastle announced that it was increasing
its offer price to $1.50 per share,  extending the termination date of the offer
to 5:00 pm, New York City time on Friday,  January 27, 2006 and  eliminating  or
amending a number of  conditions  to its offer.  Newcastle now believes that the
majority  of the  remaining  conditions  are now in the  control of the Board of
Directors of Whitehall.

         Newcastle  also  announced  that it had  received a letter  from Daniel
Levy, on behalf of the Whitehall Board, detailing a list of self-serving reasons
why  Newcastle's  offer is not a  superior  proposal.  Newcastle  believes  that
Whitehall has continued to look for reasons,  excuses and  smokescreens  for why
the Newcastle offer cannot  proceed,  when the Whitehall Board should be working
to maximize value for stockholders.

         Mark Schwarz,  the managing member of Newcastle  Partners,  stated: "We
believe our offer  provides  Whitehall's  shareholders  with a clearly  superior
alternative to the Prentice  transaction.  With the elimination of the financing
contingency  condition  from our offer,  we do not  understand how the Board can
justify  selling up to 87% of  Whitehall  to Prentice  for as little as $.75 per
share rather than allowing stockholders to receive $1.50 per share now."


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 16 of 20 Pages
- ---------------------                                     ----------------------

         Newcastle  informed  Whitehall's  Board of  Directors of the removal of
this condition, and responded to Mr. Levy's letter, by letter today, as follows:

                            "Newcastle Partners, L.P.


                                                                 January 9, 2006

VIA FACSIMILE AND FEDERAL EXPRESS

Richard Berkowitz
Daniel Levy
Norman Patinkin
Sanford Shkolnik
c/o Board of Directors
Whitehall Jewellers, Inc.
155 North Wacker Drive
Chicago, Illinois  60606

Gentlemen:

         We are  disappointed,  although not  surprised  based on the  Whitehall
Board's  actions  to date,  at the  Press  Release  issued  by the  Board  today
regarding the letter from one of Newcastle  Partners,  L.P.'s potential lenders.
We are equally  disappointed  with the subsequent  letter to Newcastle  received
from Daniel Levy, on behalf of the  Whitehall  Board.  The potential  lender had
determined  not to proceed at the present time because  Newcastle  was forced to
pursue litigation against Whitehall and Whitehall's Board was continuing to urge
stockholders to reject Newcastle's offer. While we believe the Whitehall Board's
description of the letter to be  misleading,  we do not believe it is productive
to engage in discussions  regarding this point at the present time.  What should
be clear however is that this lender remains prepared to provide a senior credit
facility in a negotiated  transaction  between  Newcastle  and  Whitehall.  Most
importantly,  Whitehall's  Board has  consistently  used the  refinancing of the
Senior Credit Facility  condition,  among other things, as a smokescreen for not
permitting Whitehall's  stockholders from proceeding with the superior Newcastle
transaction.

         Newcastle  remains  committed  to  proceeding  with its offer.  In that
light, to remove yet another Whitehall manufactured impediment, NEWCASTLE HEREBY
ELIMINATES THE  REFINANCING OF THE SENIOR  FACILITY AS A CONDITION TO ITS OFFER,
AND IS  PREPARED  TO FINANCE  THE  TRANSACTION  WITH ITS CASH ON HAND.  With the
removal of this condition,  all of the conditions to Newcastle's offer are truly
in the control of Whitehall's Board of Directors.

         Mr. Levy's letter is another example of Whitehall's  Board of Directors
manufacturing  reasons  for why not to  proceed  with  Newcastle,  as opposed to
acting in the best interests of  Whitehall's  stockholders.  At this point,  our
offer is clear,  NEWCASTLE  WILL  PROVIDE  ALL  NECESSARY  CASH TO FUND BOTH THE
ACQUISITION  AND  WHITEHALL'S  FINANCING  NEEDS PENDING CLOSING OF THE MERGER AS
DETAILED BELOW.  For the record,  Newcastle has on hand sufficient cash to repay
all of Whitehall's outstanding borrowings and to pay Whitehall's  stockholders a
substantial  premium to market  with no closing  conditions  that are not in the


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CUSIP 965 063 10 0                    13D                    Page 17 of 20 Pages
- ---------------------                                     ----------------------

Whitehall  Board's  control.  Newcastle  submitted a draft merger  agreement and
bridge loan financing  agreement to Whitehall late last week, the terms of which
Newcastle was  requested to negotiate in full.  Newcastle's  counsel  thereafter
contacted  Whitehall's  counsel  on Friday to  suggest  that the  agreements  be
negotiated over the weekend.  Whitehall's response was a letter from Dan Levy on
Monday  detailing the reasons why Whitehall would not proceed.  We again call on
the Whitehall  Board to  immediately  work for the benefit of all  stockholders,
rather than working over the weekend to prepare a letter to Newcastle  detailing
why the Newcastle  transaction won't work,  thereby depriving  stockholders of a
more favorable  transaction.  Based upon the removal of the financing condition,
Newcastle  has  provided  a  proposal  which is both (i) more  favorable  from a
financial point of view to the Company,  its  stockholders and its creditors and
(ii) has no conditions outside of the control of the board of directors.  Let us
look at the latest excuses that Whitehall takes to not meet with and negotiate a
definitive  agreement  with  us,  but  rather  finds a  better  use of its  time
preparing and sending self-serving letters in opposition to our proposal.

         1.       "Newcastle  Condition  that  the  Senior  Credit  Facility  be
                  Refinanced  Cannot Be  Satisfied."  Newcastle has removed this
                  condition.  Newcastle  hereby  represents  and is  prepared to
                  provide  Whitehall that it has cash on hand  sufficient to pay
                  off Whitehall's  senior credit facility in full by January 31,
                  2006, pay off the Back Bay  subordinated  facility and pay off
                  the $30 million Prentice Bridge Loan.

         2.       "Newcastle has not provided  information about funding for its
                  condition  that  the  $30  million  Prentice  Bridge  Loan  Be
                  Refinanced  with Board  Approval."  Newcastle will use cash on
                  hand to repay the $30 million  Prentice Bridge Loan (including
                  prepayment  penalties).  Newcastle  has  provided a draft of a
                  replacement credit facility for the Prentice Bridge Loan which
                  would  be  provided  simultaneously  with  the  signing  of  a
                  definitive merger agreement on substantially the same economic
                  terms as the  existing  Prentice  facility,  without an equity
                  compensation  feature like  Prentice  had.  Newcastle  remains
                  prepared  to  discuss  any and all  changes  to the  documents
                  reasonably requested by Whitehall.

         3.       "Newcastle  has not  detailed  its Plans  with  respect to the
                  Venders."  On the  contrary,  Newcastle  has stated that it is
                  willing  to  fulfill  all   obligations   under  the  existing
                  agreement  between the Company  and its trade  vendors.  Based
                  upon discussions with representatives of Newcastle,  Newcastle
                  believes  the  trade  vendors  will  continue  to honor  their
                  agreement. Newcastle can only question why the Whitehall Board
                  thinks  that the  trade  vendors  would  prefer  the  Prentice
                  transaction,  where their deferred payments are subordinate to
                  the Back Bay and Prentice loans, to a recapitalized  Whitehall
                  under Newcastle,  where those loans do not exist and the trade
                  is  senior  to   Newcastle's   equity  which   replaces  those
                  facilities. Further, our offer is not subject to the agreement
                  with the trade remaining in effect.


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CUSIP 965 063 10 0                    13D                    Page 18 of 20 Pages
- ---------------------                                     ----------------------

         4.       "Newcastle  has not detailed its Plan with respect to Required
                  Working  Capital."  This  excuse by the Board is  nonsensical.
                  Newcastle is buying 100% of Whitehall's  stock and as a result
                  of the removal of financing  condition will fund the repayment
                  of  all  of  the  Company's  outstanding  borrowings  and  its
                  obligations  to the trade.  Suffice it to say,  Newcastle as a
                  result will fund  between  $130 million to $150 million of new
                  cash to Whitehall.  How Newcastle  deals with working  capital
                  post closing is irrelevant.

         5.       "Newcastle  has not committed to an escrow during the Prentice
                  Match Periods."  Newcastle is prepared to review and negotiate
                  an  appropriate   agreement  to  provide  Whitehall  with  the
                  necessary assurance that its cash on hand will remain in place
                  during the notice period to Prentice. While Newcastle believes
                  a  cash  escrow  arrangement  is  unnecessary,   Newcastle  is
                  prepared to review an escrow  arrangement.  What  Newcastle is
                  not  prepared to do is to  continue to guess what  Whitehall's
                  directors  and its many  lawyers  will  require on this point.
                  What  Whitehall's  Board should be  concerned  with is working
                  with  Newcastle  to  implement a procedure  that allows all of
                  Whitehall's  constituents to benefit from a superior  proposal
                  rather  than be  forced  to  accept  an  inferior  offer  from
                  Prentice by creating artificial obstacles.

         As we have continually  said, we do not believe the Prentice  financing
proposal is in Whitehall's or its stockholders' best interests. We would welcome
the  opportunity to proceed  forward and discuss any  reasonable  changes to the
draft merger agreement and bridge financing  agreements we previously  submitted
to Whitehall. Our offer is fully capable of being promptly consummated.  We call
on the  Whitehall  Board to stop using smear  tactics and  misstatements  in its
public filings,  and to carefully review our offer and negotiate with us in good
faith.  We are  confident  that under such a  circumstance  a definitive  merger
agreement can be promptly  negotiated  and executed with the tender offer closed
by January 31, 2006.  Under these  circumstances,  we do not  understand how the
Board can justify  selling up to 87% of  Whitehall  to Prentice for as little as
$.75 per share rather than allowing  stockholders to receive $1.50 per share now
from our offer.


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 19 of 20 Pages
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         Newcastle and its representatives stand ready to meet with the Board of
Directors  and its  representatives  as soon as  possible.  Please  contact  the
undersigned at (214) 661-7474 or our counsel,  Steven Wolosky  (212-451-2333) or
Adam Finerman (212-451-2289), to discuss any questions the Board might have.

                                      Very truly yours,

                                      NEWCASTLE PARTNERS, L.P.

                                      By: Newcastle Capital Management, L.P.,
                                          its general partner
                                      By: Newcastle Capital Group, L.L.C.,
                                          its general partner

                                      By:
                                          --------------------------------------
                                           Mark Schwarz, Managing Member

cc:      Mr. Robert L. Baumgardner,
         Chief Executive Officer"


         The  solicitation  and the  offer to buy  Whitehall  Jewellers,  Inc.'s
common  stock is only  made  pursuant  to the  Offer  to  Purchase  and  related
materials that  Newcastle  Partners,  L.P. and JWL  Acquisition  Corp.  filed on
December 5, 2005, as amended December 22, 2005, January 4, 2006, January 5, 2006
and January 9, 2006.  Stockholders should read the Offer to Purchase and related
materials  carefully because they contain important  information,  including the
terms and conditions of the offer. Stockholders can obtain the Offer to Purchase
and related  materials free at the SEC's website at www.sec.gov,  from MacKenzie
Partners, the Information Agent for the offer, or from Newcastle Partners, L.P.

                   CERTAIN INFORMATION CONCERNING PARTICIPANTS

Newcastle Partners, L.P. ("Newcastle"), together with the other Participants (as
defined below),  has made a definitive  filing with the SEC of a proxy statement
(the "Definitive  Proxy  Statement") and  accompanying  proxy card to be used to
solicit votes against  proposals of Whitehall  Jewellers,  Inc. (the  "Company")
relating to a pending financing  transaction  between the Company and investment
funds  managed by Prentice  Capital  Management,  L.P. and Holtzman  Opportunity
Fund,  L.P. and for the election of its slate of director  nominees at a special
meeting of stockholders scheduled for January 19, 2006 (the "Special Meeting").

NEWCASTLE  ADVISES ALL  STOCKHOLDERS  OF THE COMPANY TO READ THE PROXY STATEMENT
AND OTHER  PROXY  MATERIALS  RELATING  TO THE  SPECIAL  MEETING  AS THEY  BECOME
AVAILABLE BECAUSE THEY CONTAIN IMPORTANT  INFORMATION.  SUCH PROXY MATERIALS ARE
AVAILABLE AT NO CHARGE ON THE SEC'S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION,
THE PARTICIPANTS IN THE SOLICITATION WILL PROVIDE COPIES OF THE PROXY MATERIALS,


- ---------------------                                     ----------------------
CUSIP 965 063 10 0                    13D                    Page 20 of 20 Pages
- ---------------------                                     ----------------------

WITHOUT  CHARGE,  UPON  REQUEST.  REQUESTS FOR COPIES  SHOULD BE DIRECTED TO THE
PARTICIPANTS'  PROXY  SOLICITOR,  MACKENZIE  PARTNERS,  INC.,  AT ITS  TOLL-FREE
NUMBER: (800) 322-2885 OR BY E-MAIL AT: PROXY@MACKENZIEPARTNERS.COM.

THE  PARTICIPANTS  IN THE  PROXY  SOLICITATION  ARE  NEWCASTLE  PARTNERS,  L.P.,
NEWCASTLE  CAPITAL  MANAGEMENT,   L.P.,  NEWCASTLE  CAPITAL  GROUP,  L.L.C,  JWL
ACQUISITION  CORP., MARK E. SCHWARZ,  STEVEN J. PULLY,  JOHN P. MURRAY,  MARK A.
FORMAN AND CLINTON J. COLEMAN (THE  "PARTICIPANTS").  INFORMATION  REGARDING THE
PARTICIPANTS AND THEIR DIRECT OR INDIRECT INTERESTS IS AVAILABLE IN THE SCHEDULE
13D JOINTLY  FILED WITH THE SEC ON APRIL 19, 2005,  AS  SUBSEQUENTLY  AMENDED ON
JULY 7, 2005, OCTOBER 27, 2005,  NOVEMBER 30, 2005,  DECEMBER 5, 2005,  DECEMBER
14,  2005,  DECEMBER  29,  2005,  JANUARY  5, 2006 AND  JANUARY  9, 2006 AND THE
DEFINITIVE PROXY STATEMENT.