Warrantech Renews Five-year Contract With Ultimate Electronics; Leading Southwest-based Electronics Retailer Extends Ten-Year Relationship

    EULESS, Texas--Dec. 10, 2001--Warrantech Corporation (OTC:WTEC), a leader and innovator in providing service contracts and aftermarket warranties today announced that it renewed a service contract sales agreement with Ultimate Electronics Inc. for an additional five years.
    Ultimate Electronics is a leading specialty retailer of home entertainment and consumer electronics currently operating 46 stores in 11 states under brand names including Ultimate Electronics, Audio King and SoundTrack. With projected retail sales in excess of $500 million for calendar year 2001, Ultimate is a fast-growing retailer with plans to open 10 to 12 stores by year-end 2002. Ten stores will be opened in Dallas/Fort Worth, the company's newest market.
    "Warrantech strives to provide the highest level of customer service, while offering significant value to our retail clients and their patrons," Joel San Antonio, chairman and chief executive officer of Warrantech, said. "We are proud that Ultimate Electronics has used Warrantech as their service contract provider for more than a decade. We value this relationship, and look forward to many more years of continued service."
    Dave Workman, president and chief operating officer of Ultimate Electronics, said, "For a decade, Warrantech has been a valued partner in helping us provide full and complete service to Ultimate customers on a wide range of complex technical products. We see Warrantech as an important resource, and anticipate a long and profitable relationship for many years to come."

    About Warrantech:

    Warrantech Corporation 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 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.