Warrantech Corporation Signs Agreement with Nova Insurance Services to Market Home Service Contracts

    EULESS, Texas, Feb. 6 Warrantech Home Service Company, a
division of the Warrantech Corporation (OTC Bulletin Board: WTEC), a leader
and innovator in the field of service contracts and extended warranties, today
announced that it signed an agreement with Nova Insurance Services to market
home warranties in the state of Arizona, providing Arizona homeowners with
protection against significant financial loss.
    The warranty covers mechanical breakdowns of working systems in the home
including heating, air conditioning, plumbing, electrical systems and built-in
appliances.  Under the terms of the two-year agreement, Nova Insurance
Services will offer one-year renewable contracts for home warranties in the
state of Arizona.  The warranties will be marketed through real estate
agencies, financial service and mortgage companies, and insurance agents.
    Joel San Antonio, Chairman and CEO, Warrantech Corporation, said, "More
and more homeowners are recognizing the need for warranties on working systems
in the home. Our track record of performance and flexibility has made us the
administrator of choice.  We look forward to having more and more states
market home warranties provided through Warrantech."

    Warrantech Corporation, headquartered in Euless, Texas, 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 and Latin America.  For more
information about Warrantech, access http://www.warrantech.com.

    About Nova Insurance Services
    Nova Home Loans has been licensed as a mortgage broker in the state of
Arizona since 1980. Nova has been named the number one mortgage lender in Pima
County in 1998 and 1999 and received the honor of being named among the top 10
mortgage bankers in Arizona by Arizona Business Magazine.
    Nova expanded in its efforts to provide the best customer service possible
by starting an insurance brokerage, Nova Insurance Services in 1999.  As an
independent insurance agency, Nova Insurance Services provides many different
products at competitive prices.  Nova Insurance Services currently provides
products to cover homeowners, auto, life and disability.  Companies that Nova
represents are: The Hartford, Travelers Property Casualty, Progressive and
Encompass formerly CAN, Lincoln Benefit and F&G Life. For additional
information please contact Stacie Totsky by email at stacie@novahomeloans.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. Such risks and uncertainties include but are not
limited to, the effectiveness of cost containment measures and 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
to differ materially from those expressed in any forward looking statements
that are made today.