Warrantech International Signs Agreement With Mavila; Company Captures Strong Market Position in Peru; Continues Latin America Growth Strategy

    EULESS, Texas--Feb. 11, 2002--Warrantech Corporation (OTCBB: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 Mavila Hnos. Under the agreement, Mavila will offer point-of-sale service contracts on all consumer electronic products and appliances, which Warrantech Peru S.R.L. will administer.
    With this agreement, Mavila joins falabella, Ripley, Tiendas EFE and Electrosave, which represent the majority of the largest retail chains in Peru that use Warrantech Peru to provide service contract administration for their customers.
    Mavila Hnos. was founded in 1951. Recognizing the need to provide a cost-effective means of transportation, Mavila introduced the Yamaha (Japan) and Piaggio (Italy) brands in Peru. In addition to motorcycles and three-wheeled vehicles, Mavila sells a complete range of electric generators, stationary engines, outboard engines for boats, and home appliances.
    Today, Mavila operates 21 stores in 12 cities. Currently, nine stores offer home appliances and qualifying product sales are expected to reach US$10 million during 2002. In addition to in-store sales, they are also promoting e-commerce transactions via their web site at www.mavila.com.pe
    According to Mr. Roberto Scala, General Manager of Mavila, the selection of Warrantech Peru will enhance Mavila's customer service and continue to strengthen their brand and market leadership in Peru.
    Warrantech International's Managing Director, Jorge Joison said, "The addition of Mavila in Peru follows on the heels of our success in becoming the market leader of warranties in Peru and Chile and is further evidence of the execution of our expansion strategy for Latin America."

    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.