Warrantech Signs Three-Year Agreement With Wherehouse Entertainment

    EULESS, Texas--April 9, 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 Wherehouse Entertainment, Inc., one of the largest retailers of prerecorded music, video and consumer electronics in the United States.
    Wherehouse services its customers through more than 400 niche-oriented specialty retail stores in 24 states, including Wherehouse Music, in addition to direct Internet sales. Under the terms of the agreement, Wherehouse will begin selling Warrantech's innovative Xchange Card Program through the recently introduced Digital Wherehouse concept. Digital Wherehouse is a store-within-a-store offering digital electronic merchandise, including portable CD players, home CD and DVD units, satellite equipment, home theatre systems, digital cameras, PDAs and cellular telephones as well as related subscription services to support these products.
    "We are very pleased Wherehouse Entertainment has chosen to offer Warrantech's Xchange Card to all its customers. We anticipate a long and mutually rewarding relationship," said Joel San Antonio, chairman and chief executive of Warrantech. "As a national leader in providing service contracts and warranty protection, Warrantech continues to set the standards for providing excellent coverage on consumer electronics purchases."
    "Over the years, Wherehouse has been recognized throughout the industry for understanding, anticipating and meeting the needs of our customers," said Brad Tait, vice president new business development of Wherehouse Entertainment. "We are committed to being a leader in our industry, and continue to pave the way by offering the latest products, service and technologies to our customers. Warrantech's Xchange Card helps us achieve this goal."
    Wherehouse customers will now be able to purchase the nation's first product replacement program available on consumer electronics and appliances priced at $500 or less. The Xchange Card guarantees a new product will be exchanged for the failed unit during the coverage period. Coverage is available at the time of purchase and extends for a full year after the manufacturer's warranty. Consumers can register either on-line or by toll free number.

    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.