World Funding Group Selects Warrantech Corporation
1 June 2000
World Funding Group Selects Warrantech Corporation Three-Year Agreement to Provide Vehicle Service Contracts and Comprehensive
Call-Center Support for Internet-Based Auto Loan Processing Centers
STAMFORD, Conn., June 1 Warrantech Corporation
(OTC Bulletin Board: WTEC), today announced a three-year agreement with World
Funding Group, a wholly owned subsidiary of E-CreditProvider.com, Inc., Boca
Raton, Fla., a source of comprehensive e-commerce services to retail
automobile dealers nationwide.
The agreement calls for Warrantech to administer vehicle service
contracts, which grant additional coverage to automobile purchasers beyond the
manufacturer's warranty, and to provide call-center services to assist in the
arrangement and disposition of automotive loan applications.
Warrantech provides these services in support of E-CreditProvider.com's
new Internet-based, e-commerce solution for retail automobile dealers, called
e.Dealer Solutions, a turnkey, e-commerce platform designed to bring
traditional independent automotive retailers together with the large and
fast-increasing number of new-car buyers that want to select and finance their
purchases on-line.
"Up to now, traditional automobile dealers have had difficulty
participating in the new economy," Joel San Antonio, Warrantech Chairman and
CEO, said. "Now, via e.Dealer Solutions, E-CreditProvider.com is providing
the traditional automobile dealer with an effective and efficient Internet
presence required to participate and succeed in the new economy. We are very
excited to be part of this innovative program."
E-CreditProvider.com's World Funding Group provides dealers and their
customers with service contract options under its Vehicle Repair Solutions
brand.
World Funding Group also provides its e.Dealer Solutions customers with
comprehensive financing process services through its Automotive Vehicle
Financing brand, for which Warrantech provides call-center services.
Warrantech, a strategic partner
The e.Dealer Solutions package provides dealers with a full compliment of
auto selection, financing and aftermarket products and services that buyers
expect and dealers want to provide, which includes aftermarket service
contracts and facilitating the loan application and approval process.
"Aftermarket products and services such as extended service contracts are
especially important to car dealers in that they provide an important
additional revenue stream and boost a dealer's margin on sales," Peter
Kokinos, President of E-CreditProvider.com, said. "Warrantech's experience
and expertise in administering extended service contracts and in providing
assistance to retail customers in the financing process makes them a key
strategic partner for us, for our dealers and for their customers.
"Our dealer customers demand a reliable and comprehensive e-commerce
program and e.Dealer Solutions delivers the broadest range of products,
services and technology provided by the best and most-respected companies,"
Mr. Kokinos added. "That is our strategic advantage."
Internet changes vehicle purchasing behavior
In the fast-changing "wired" world, the speed and convenience of on-line
comparative shopping is increasing the number of new car purchases made over
the Internet, rather than in car dealers' showrooms, according to a recent
study by Forrester Research Inc., of Cambridge, Mass.
Moreover, the study notes that car dealers have been significantly
impacted by the increase in the number of on-line car buying sites and are in
need of e-commerce solutions that will extend their franchise into the on-line
world along with their ability to generate sales of profitable programs and
services to on-line customers.
"The e.Dealer Solutions program is the first of its kind, an e-commerce
solution designed to enhance the sales productivity of automobile dealers in
the wired world, not compete with them," said Mr. Kokinos
On-line car purchases grow strongly
The Forrester study notes that nearly one-third of the 15 million new
vehicles purchased in 1998 were bought by those with regular access to the
Internet. Forrester predicts that number will nearly double in 2003. In
addition, the study discloses that fully eight percent of the 15.7 million
vehicles sold in 2003, 1.3 million vehicles, will include extended service
contracts selected by on-line buyers.
About E-CreditProvider.com
E-CreditProvider.com is a new, retail-dealer-oriented e-commerce solution
for the automotive industry. Through its various subsidiaries and a network
of alliances with leading financial institutions, E-CreditProvider.com
provides automotive dealers with customized turnkey e-commerce solutions that
instantly tap the growth and potential of the burgeoning Internet-based
marketplace. E-CreditProvider.com is also a leading participant in the
e-commerce automobile finance arena with sites such as
http://www.directautoloan.com, http://www.autoloannation.com and
http://www.world13.com.
About Warrantech Corporation
Warrantech Automotive Corporation, headquartered in Euless, Texas, is a
subsidiary of Warrantech Corporation of Stamford, Conn., that, through its
subsidiaries, administers and markets service contracts and after-market
warranties on automobiles, automotive components, recreational vehicles,
appliances, consumer electronics, homes, computer and computer peripherals for
retailers, distributors and manufacturers. The Company continues to expand
its domestic and global penetration, and now provides its services in the
United States, Canada, Mexico, Puerto Rico, the Caribbean and Latin America.
Learn more about Warrantech Corporation at http://www.warrantech.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act
of 1995: This release contains forward-looking statements that are subject to
risks and uncertainties. Other risks and uncertainties include but are not
limited to the continuation of current levels of business activity, the impact
of competitive products, product demand and market-acceptance risks, reliance
on key strategic alliances, fluctuations in operating results and cash flow
and other risks detailed from time to time in the Company's filings with the
Securities and Exchange Commission. These risks could cause the Company's
actual results for the current fiscal year and beyond to differ materially
from those expressed in any forward looking statements made by, or on behalf
of, the Company.
