Warrantech Automotive Launches One World Warranty Plan; Consumers Can Custom-Design Plans with Flexible Time and Mileage Limits to Match Their Driving Habits and Warranty Needs

BEDFORD, Texas--Jan. 3, 20041, 2004--Warrantech Corporation (OTC: WTEC), a leading independent provider of service contracts and after-market warranties, is launching what is believed to be the automotive industry's most flexible warranty plan currently available.

The company introduced the new program, called One World, today at the annual National Automobile Dealers Association Convention and Exposition in Las Vegas, NV. Warrantech chose the name One World to symbolize the unique "one program" approach to the plan - it makes no distinction on coverage of new cars, near-new, or used vehicles.

"One World provides the dealer's F&I department with an attractive add-on sales opportunity, while putting the decision-making power back in the consumer's hands," said Chris Ford, president of Warrantech's automotive division. "For the first time, car buyers can customize a plan based on the length of time and mileage limits that meet their driving habits and warranty needs."

Ford also said that One World is available in four different coverage levels of up to 100,000 to 120,000 miles. Customers can structure the plans in any combination of time and mileage, purchased in increments of one month and 1,000 miles. An optional luxury package

will be available for Ultimate coverage, including such in-vehicle electronics as GPS/Navigation System, power tailgate lock, automatic climate control programmer and a factory installed TV or DVD, among others.

The One World warranty includes a computerized rating disc that allows the dealer to enter the vehicle identification number (VIN) for a given contract; note the year, make and model of the car and determine the appropriate price for the warranty plan as structured.

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.