Warrantech Automotive Introduces Its Sterling Auto Warranty Plan For the Used Car Market

BEDFORD, Texas--Jan. 2, 20049, 2004--Warrantech Corporation (OTC:WTEC), a leading independent provider of service contracts and after-market warranties, has introduced the Sterling Auto Warranty Plan, designed to offer used car buyers broad coverage at an affordable cost. It not only protects the consumer against mechanical problems, but also includes a full array of benefits including Vehicle Title LLC's TitleGuard vehicle title insurance, road club services provided by Road America and substitute transportation, all at an affordable price.

Unlike most service contracts, Sterling Auto Warranty has been completely designed to meet the needs of independent used car dealers. It will also be used in franchised dealerships for higher mileage used vehicles. One of the key factors in creating this program is to give dealers a high quality product that is fully insured from day one.

"By creating an affordable program that is administered by Warrantech and is fully insured, dealers can provide the Sterling Auto Warranty on their pre-owned vehicles with confidence, knowing that their customers will be taken care of now and in the future," said Chris Ford, president of Warrantech Automotive. "We are offering dealers new car service contract security at a level of coverage and price they are seeking for their used vehicles."

Warrantech's Sterling Auto Plan will include three levels of coverage, from a simple power train to comprehensive coverage that includes high tech electrical components.

Ford said that dealers will be able to register contracts directly online and handle most claims through Warrantech's state-of-the-art VSC Online Internet-based platform.

"This is raising the level of sophistication on a used vehicle program up to the standards of a new car program, while keeping it simple at the dealership level," Ford said.

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.