Warrantech International Signs Agreement With Electrosave; Market Presence Expands in Southern Peru

    EULESS, Texas--Dec. 5, 2001--Warrantech Corporation (OTC:WTEC), a leader and innovator in the field of service contracts and extended warranties, today announced that Warrantech Peru S.R.L., a subsidiary of Warrantech International Inc., has signed a three-year agreement with Electrosave S.R.L. Under the agreement, Electrosave will offer point-of-sale service contracts on all consumer electronic and appliances.
    With this agreement, Electrosave joins falabella, Ripley and Tiendas EFE, the majority of the largest retail chains in Peru, that utilize Warrantech Peru to provide service contract administration for their customers.
    Electrosave, an electronics retailer founded in 1978, operates in the city of Arequipa, Peru's second largest city. The stores are well known in Southern Peru by the use of their slogan "Electrosave... we are part of your family."
    According to Mr. Luis Velazquez, General Manager of Electrosave the selection of Warrantech Peru will bring to their customers the benefit of Warrantech's experience in Peru as well as the wealth of International experience they bring with them. "This will ensure that our consumers continue to receive an excellent level of service, the same service they have enjoyed during the past 23 years."
    Warrantech International's Managing Director, Jorge Joison said, "Electrosave expands the company's list of regional clients in Peru and Chile. This agreement confirms the success of Warrantech's strategy in providing services to retailers in key Latin American cities. At the same time, Warrantech continues its goal to penetrate new markets throughout South America."

    About Warrantech:

    Warrantech International Inc., a subsidiary of Warrantech Corporation (OTC:WTEC), provides business services through its subsidiaries, which include warranty and service contract 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 United States, Canada, Mexico, South America, Caribbean, and Puerto Rico. For additional information on 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. Other risks and uncertainties include but are not limited to, Warrantech Automotive's ability to secure an alternate source of payment of claims under the vehicle service contracts as a result of the Reliance Insurance Company Liquidation, 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 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.