Warrantech Home Service Company and Byowner.com Sign Five-Year Agreement to Provide Home Warranty Programs

    EULESS, Texas--Oct. 15, 2001--Warrantech Corporation (OTCBB:WTEC), a leader and innovator in the field of service contracts and extended warranties, today announced that it has signed a five-year agreement with Byowner.com, an Internet-based site for consumers who are buying and selling homes, to be the exclusive provider of home warranties.
    Warrantech Home Service Company's expansion into new distribution channels is expected to be a key contributor to the Consumer Products segment's growth. The home service contracts are insured by insurance companies rated A excellent, and can be purchased through banks, mortgage companies, insurance companies, electric and gas utilities, financial institutions and now directly over the Internet.
    In the United States, approximately 4.7 million homes change owners each year, and depending on geographic location anywhere from 18% to 37% of homes are sold by the owner.
    Under the agreement with Byowner.com, Warrantech will offer two programs for both existing homeowners and home sellers that can be purchased at an affordable fixed cost. The RepairMaster program will be offered to existing homeowners covering mechanical breakdowns of working systems including heating and air conditioning, plumbing, electrical and built-in appliances for one year. The Sellers Advantage program affords the home seller expanded mechanical coverage during the period from when a house is listed up until the closing in which the coverage is transferred to the new owner for an additional period of 12 months from the date of closing.
    Joel San Antonio, chairman and chief executive officer of Warrantech, said, "Part of our growth strategy is the expansion of our home warranty operations. The agreement with Byowner.com will greatly improve our presence in the real estate market and fits with their strategy of providing homeowners with cost-efficient products and resources."
    Byowner.com, started in 1995, is a web site supported by over 80 field representatives called coaches that provide products and services to consumers to assist them in selling their home. The site receives over 2.5 million page views per month and over 20,000 unique visitors per month.
    Kevin Wood, president and CEO of Byowner.com, stated, "As a resource for homeowners, Warrantech's program is an excellent way for us to deliver an exceptional value to our customers." Craig Martin, Business Development Manager stated, "We have worked with other Home Warranty Companies in the past and found that Warrantech Home Service Company offered, by far the best product and service level available in the industry today."
    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 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.