Warrantech Adds New Functionality To WCPS Online; Web-based Platform Continues to Cut Time and Costs for Dealers, Service Providers

BEDFORD, Texas--Jan. 5, 2004--Warrantech Corporation (OTC: WTEC), a leading independent provider of service contracts and after-market warranties, is unveiling new time- and cost-saving features for its web-based tool, WCPS Online, at the International Consumer Electronics Show, which starts today in Las Vegas.

New modules for the application include Service Contract Submission, Dealer Sales Analysis and Express Claims Processing. All of these features are designed to reduce paperwork and cut the time and costs of administering warranties for dealers and service providers, while providing a better experience and faster service for their customers.

"In the Warrantech tradition of innovation and customer service, we intend to continue to enhance WCPS Online - the industry's most comprehensive web-based tool - to meet the real-time needs of retailers, service providers and consumers," said Burt Shaw, president of Warrantech's Consumer Products division. "These new features are just one example of that commitment and attention to world-class customer support."

The Service Contract Submission module is designed for smaller dealers that don't typically generate high volumes. It allows them to enter contract sales and registration data in "real time" to Warrantech via the Internet. This module is an appropriate complement to Warrantech's existing electronic data acquisition modules for medium- and large-sized dealers.

Dealer Sales Analysis allows retailers to graphically display service contract sales history by store location and/or product class. It charts metrics such as retail sales dollars, margin dollars and unit counts.

The information supporting any graphical display can also be downloaded for further in-house analysis.

The Express Claims Processing feature allows service centers to submit their repair invoices to Warrantech in two ways. Claims can be keyed into the site individually, or a file of claims can be uploaded depending upon volumes on any given day.

Significant enhancements to the existing Express Service and External Servicer Interface (ESI) modules were also announced. Service centers can electronically request Warrantech to assist in locating a customer's contract, modify an existing contract, or increase existing repair authorization dollars.

WCPS Online also has an e-commerce component that allows consumer electronics and appliance OEMs to offer private label service contracts directly to consumers. Via links from the manufacturers' sites, consumers can navigate to Warrantech-hosted web pages and purchase service contracts directly. Warrantech handles the credit card transactions, and pays commissions to the manufacturer.

Warrantech is demonstrating the new features of WCPS Online during the Consumer Electronics Show in Las Vegas in the Central Hall of the Convention Center, booth 14107.

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, 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.