Warrantech Signs Three-Year Agreement with BoatU.S.; Its First Replacement Program in Boating

    EULESS, Texas--Feb. 4, 2002--Warrantech Corporation (OTCBB:WTEC), a leader and innovator in the field of service contracts and extended warranties, today announced that a three-year agreement has been signed with BoatU.S., the nation's largest recreational boating Association, to offer to its 530,000 member base the Warrantech Xchange Product Replacement Program.
    Under terms of the agreement, association members will now be able to purchase the nation's first product replacement program available on consumer electronics and appliances sold by BoatU.S. priced at $600 or less. The Xchange Card guarantees a new product will be exchanged for the failed unit during the coverage period. Coverage extends for a full year after the manufacturer's warranty.
    BoatU.S. offers thousands of products and numerous programs and services intended to make recreational boating easier and less costly for Association members. The Xchange Card will be marketed to Association members through more than 60 stores in 20 states.
    "Boating represents the third new market Warrantech has penetrated during the last twelve months, in addition to motorcycles and golf carts," said Joel San Antonio, chairman and CEO of Warrantech Corporation. "BoatU.S. is our first client in the boating industry, and we are pleased that such a highly regarded organization has selected Warrantech's Xchange Card Program for their Association members."
    Richard Schwartz, chairman and founder of BoatU.S. said, "Our Association has been providing savings, service and representation to boat owners since 1966. As the nation's most powerful advocate for advancing the interests of boaters, and the primary source of recreational products and services, we believe the Xchange Card will give our members a level of protection not found in any other warranty or service contract program."

    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.