Warrantech Home Service Company Teams With CRES to Offer Home Sellers Advantage Warranty Program; New Plan Expected to Give Real Estate Agents Competitive Edge

    EULESS, Texas--Jan. 17, 2002--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 CRES Insurance Services, LLC, a leading provider of risk management programs and errors and omissions insurance for real estate agents.
    Under terms of the agreement, CRES will provide a unique risk management package that offers comprehensive protection for home buyers, sellers and real estate agents that will be included under the new Home Sellers Advantage Program. Additional benefits of the program include Disaster Mortgage Protection, Homeowners Deductible Reimbursement, Food Spoilage Protection, Hotel Expense Reimbursement and Job Loss Protection for the homebuyer.
    "Our focused expansion into the real estate industry is expected to play a significant role in Warrantech Home's growth strategy," said Bill Barker, president of Warrantech Home Service Company. "The Home Sellers Advantage Program will be that vehicle, combining solid mechanical coverage with additional benefits that make this program an exceptional value. It signifies a dramatic leap from traditional home warranty programs and is expected to become one of the most comprehensive products available in the industry today."
    CRES Insurance Services, established in 1996, is a leading provider of errors and omissions insurance programs and risk management services for the real estate industry, serving approximately 4,000 real estate offices and more than 50,000 real estate professionals in the United States. The company's clients include many of the largest independent, franchised real estate brokerages such as independent offices of Century 21, RE/MAX, ERA and Coldwell Banker. Based in San Diego, California, CRES is licensed in all 50 states and is among the largest providers of E and O insurance in the country, underwriting more than 250,000 home transactions annually.
    Douglas Campbell, president and chief executive officer of CRES Insurance Services stated, "As a resource for real estate agents, the Home Sellers Advantage Program is revolutionary -- it is an excellent way for us to deliver an exceptional value to real estate agents and their customers."
    Warrantech's Home Sellers Advantage Plan initially will be offered in Georgia, Oklahoma, Texas and Utah, and subsequently expanded across 31 states to support market demand.

    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. Specifically, Warrantech Home Service's expansion into the real estate industry is dependent, among other things, upon, the industry's acceptance of the Home Sellers Advantage Program, the Company's ability to attract new customers, the economic environment, particularly with respect to the housing market, the impact of competitive products, other product demand and market-acceptance risks, reliance on key strategic alliances, the continuation of current levels of business activity, 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.