Warrantech International Signs Agreement With La Polar, the Fourth Largest Retail Chain in Chile

    EULESS, Texas, May 21 Warrantech Corporation (OTC Bulletin Board: WTEC), a leader and innovator in
the field of service contracts and extended warranties, today announced that
Warrantech Chile, a subsidiary of Warrantech International, Inc., has signed a
three year agreement with La Polar to offer point-of-sale extended warranties
on all consumer electronics and appliances.
    La Polar is owned by the investment fund Southern Cross in which Swiss
Bank is a principal shareholder and has 16 stores across Chile with sales
exceeding U.S. $100 million. During 2000 sales increased by 40%.
    Warrantech has gained significant market penetration providing services to
Chile's major retail chains and is seeking to increase it's market share in
Latin America by expanding its distribution channel to include regional
chains.
    Warrantech International's managing director, Jorge Joison said, "The
addition of La Polar to our growing list of clients in Chile clearly defines
Warrantech International as the dominant extended warranty provider not only
in Chile but in all of South America. The selection of Warrantech by La Polar
validates our efforts and expansion of our thriving presence in the Chilean
market. We are looking forward to our affiliation with such an esteemed
retailer as La Polar to offer their customers our products and services that
so many Chilean consumers are now demanding"
    Maria Isabel Farah, comptroller for La Polar, stated, "Extended Service
contracts fit very well with management's vision and we look forward to
providing additional services to our entire customer base and at the same time
expanding our presence in the market"
    Warrantech International, Inc. is a subsidiary of Warrantech Corporation
(OTC Bulletin Board: WTEC) which provides business services through its
subsidiaries, which include warranty management, third-party administration
for insurance companies, marketing and training, inbound and outbound call
center teleservices, direct mail and help-desk support to the automotive,
consumer products, computer and financial services industries. The company is
expanding its international operations by offering its services in the U.S.,
Canada, Mexico, South America, Caribbean, and Puerto Rico.

    "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.

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