AIG Granted Options to Acquire Two Million Shares of Warrantech Stock

    EULESS, Texas--Sept. 11, 2001--Warrantech Corporation (OTCBB:WTEC), a leader and innovator in the field of service contracts and extended warranties, today announced that pursuant to the settlement of litigation with American International Group, Inc. (AIG) and Service Guard Insurance Agency, Inc., Warrantech Corporation granted AIG a five-year option to purchase two million shares of Warrantech's common stock at a purchase price of $2.00 per share.
    Warrantech has the right to redeem the options at any time during the five-year term if Warrantech shares trade at a price of $3.00 per share or more on any five consecutive trading days. The redemption price is $.001 per option. If Warrantech elects to redeem the shares, AIG will have the right to exercise the options immediately prior to the redemption. In the event that AIG exercises all of the options, it would hold an equity position in Warrantech of approximately 12% of the company's outstanding shares.
    Joel San Antonio, chairman and chief executive officer of Warrantech, stated, "We are pleased that the litigation with AIG has been concluded. If AIG elects to exercise the options, we would welcome the investment."
    Warrantech Corporation, headquartered in Euless, Texas, through its subsidiaries, administers and markets service contracts and after-market warranties on automobiles, light trucks, automotive components, recreational vehicles, home appliances, consumer electronics, televisions, home office equipment, 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, Puerto Rico and Latin America. For more information about Warrantech, access 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. 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.