Warrantech Selects Lloyd's; Syndicate and Specialty Insurers Underwrite New GAP Automotive Program

BEDFORD, Texas--Feb. 3, 2006--Warrantech Corporation (OTC:WTEC), a leading independent provider of service contracts and after-market warranties, announced today that Lloyd's Insurance Syndicate has agreed to appoint Warrantech for its new Guaranteed Asset Protection (GAP) program. Warrantech Automotive, Inc., a wholly owned subsidiary of Warrantech will begin offering this program immediately to its dealer clients.

GAP insurance, a hedge in the event that a vehicle is stolen or totaled due to an accident, protects consumers from loss if the value of the vehicle is less than the amount owed on the loan. The appointment by the syndicate of Lloyd's of London, a world-renowned group of specialty insurance providers, will allow Warrantech to offer coverage in all states in which GAP insurance is authorized. According to the terms of the underwriting agreement, Lloyd's will insure the first 36 months of each contract's term. If a contract term exceeds 36 months, another specialty insurance firm will insure the remaining period.

"We are very pleased that Lloyd's, an internationally known and highly respected insurer, has agreed to underwrite the GAP Automotive program," said Joel San Antonio, chairman and chief executive officer of Warrantech Corporation. "As the leading independent administrator in today's marketplace, Warrantech strives to provide its customers with a broad spectrum of innovative, high-quality products. We believe Lloyd's decision reflects its recognition of Warrantech as a pre-eminent administrator and look forward to expanding this relationship into other product lines and markets."

About Lloyd's Insurance Syndicate

Lloyd's is the world's leading specialist insurance market with a capacity to accept insurance premiums of more than GBP 13.7 billion in 2005. It occupies sixth place in terms of global reinsurance premium income, and is the second largest surplus lines insurer in the U.S. In 2005, 62 syndicates are underwriting insurance at Lloyd's, covering all classes of business from more than 200 countries and territories worldwide. For more information about Lloyd's, visit www.lloyds.com.

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.