Warrantech Announces Strong Preliminary First Quarter Results; Earnings in Line With Analyst Expectations

    EULESS, Texas--Aug. 1, 2002--Warrantech Corporation (OTC:WTEC), a leader and innovator in administering service contracts and extended warranties, today announced that it expects to report earnings per share (EPS) of $0.04 to $0.06 for the fiscal first quarter 2003 ended June 30, 2002. This strong result is in line with the $0.05 EPS consensus estimate currently projected by financial analysts. The achievement of earnings is attributed to a 19% increase in gross receipts from new and existing clients, from new products, and a streamlined corporate infrastructure and ongoing cost-cutting measures.
    "Warrantech's ongoing profitability demonstrates the management team's success in aggressively managing the bottom line while enhancing our ability to grow the company's business," Joel San Antonio, Warrantech chairman and chief executive officer, said. "Based on preliminary data, first quarter 2003 financial results look exceptionally strong. This achievement is particularly significant in light of a difficult world wide economic environment. As a result, we look forward to reporting our ninth consecutive quarter of profits in the near future."

    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:

    Except for the historical information contained herein, the matters discussed in this release may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Forward-looking statements reflect the Company's views and assumptions, based on information currently available to management including, among other things, the Company's operating and financial performance over for the period covered by this release. This information is subject to further review and analysis by management, and it is possible that, as a result of such further review and analysis, the financial information that is ultimately reported for the period may change.