US1 Automotive Solutions Joins Warrantech Agent Network; Move Could Increase Warrantech's Automotive Volume by Four Percent

BEDFORD, Texas--Aug. 5, 2003--Warrantech Corporation (OTC: WTEC), a leading independent provider of service contracts and after-market warranties, has signed a new automotive sales agent, US1 Automotive Solutions, Inc., based in North Myrtle Beach, SC.

US1, formerly known as Carolina Warranties, will increase Warrantech's total automotive warranty unit volume by about four percent. Effective immediately, US1 will offer private label, automotive aftermarket warranty and service plans, designed and administered by Warrantech, to its current and prospective client roster.

US1 serves more than 150 new and pre-owned car dealers in North and South Carolina, Georgia, Florida, Missouri, Nebraska and Louisiana, and plans to expand its private label warranty nationwide.

"Warrantech's plan offerings, coupled with the company's VSC Online platform for administering all aspects of the warranty process, represent the future of the automotive aftermarket industry," said Jack Hearne, founder and CEO of US1. "They have contributed significantly to the ongoing revolution in our industry and we welcome the opportunity to do business with them."

Warrantech's VSC Online is an Internet-based tool that enables virtually "paperless" warranty registration, processing of dealer-produced contracts and administration and claims payment filed by service contract holders.

"Jack brings more than 30 years experience and a deep understanding of every aspect of the automotive industry - particularly F&I and the aftermarket - to our network of agents," said Chris Ford, president of Warrantech's Automotive Division. "We are pleased to welcome him and look forward to a long and mutually prosperous relationship."

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, 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.