Warrantech Appoints Michael Bailey President of Canadian Operations; Warrantech Gears Up for 2002 Expansion Plans

    EULESS, Texas--Jan. 7, 2002--Warrantech Corporation (OTC:WTEC), a leader and innovator in providing service contracts and aftermarket warranties, today announced the appointment of Michael C. Bailey as president of its Canadian operations.
    In his new position, Bailey will be responsible for establishing operations in Canada to service Warrantech's Canadian customer base and increasing the company's market penetration for consumer products, home and automotive service contracts and extended warranties throughout Canada.
    "We are pleased to welcome Michael to the Warrantech management team," said Joel San Antonio, chairman and chief executive officer of Warrantech. "He has extensive experience in developing, managing and marketing warranty and customer service programs. This extensive insight and knowledge of the Canadian market will be a significant asset to providing retailers Warrantech's innovative products and programs that will enhance our expansion and presence there."
    Prior to joining Warrantech, Bailey served as a warranty consultant to numerous electronic, appliance and HVAC retailers and utilities including A&B Sound, Canada's largest privately held electronics retailer; and as an assistant vice president with ACE International Insurance, developing warranty programs internationally for this multinational insurance company.
    The majority of Bailey's career was spent in a variety of increasingly responsible sales and management positions in Canada with Dominion Warranty Inc. As national sales manager with Dominion, he was responsible for four regional managers and 14 sales representatives in Canada and the U.S., growing sales in his divisions by more than 500 percent.

    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, 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, attainment of new business, 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.