Warrantech Announces Strong Preliminary Third Quarter Results; Earnings Expected To Increase More than 100%

    BEDFORD, Texas--Jan. 27, 2003--Warrantech Corporation (OTCBB:WTEC), a leader and innovator in the administration of service contracts and extended warranties, today announced that it expects to report profits for the eleventh consecutive quarter. Earnings per share (EPS) are expected to be in the range of $0.05 to $0.07 for the fiscal third quarter 2003 ended Dec. 31, 2002 versus $0.03 for the corresponding 2002 quarter. The rise in earnings is attributed primarily to a 20 percent to 30 percent increase in gross receipts from new and existing business, and ongoing cost-cutting measures.
    "Warrantech continues to generate profits in spite of lagging economic conditions," said Joel San Antonio, Warrantech chairman and chief executive officer. "Our management team has worked tirelessly to grow our business, and our financial results prove the success of our strategy. Based on preliminary data, third quarter 2003 financial results look exceptionally strong. As a result, we look forward to reporting our eleventh 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 http://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, 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.