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Warrantech Extends Agreement with American International Group (AIG) Unit

27 August 1997

Warrantech Extends Agreement with American International Group (AIG) Unit

    STAMFORD, Conn., Aug. 27 -- Warrantech Corporation
announced today that its wholly owned subsidiary,
Warrantech Automotive Inc., has entered into a 5-year agreement with New
Hampshire Insurance Company, a member company of American International Group,
Inc. "AIG", extending an existing  agreement that has been in
place since 1993.  New Hampshire and other AIG member companies, rated A++
(Superior) by A.M. Best Company, will continue to underwrite Warrantech's
portfolio of automotive service contracts.
    Warrantech Automotive President Ronald Glime said, "We look forward  to
continuing what has been a very successful relationship over the past four
years. Since 1993, Warrantech Automotive has experienced significant growth
and has established itself as one of the premier automotive service contract
providers."
    According to New Hampshire Insurance Company Vice President Marc Vivori,
"New Hampshire Insurance Company is pleased to continue this valuable
relationship. We look forward to working with Warrantech's professionals to
provide high quality products to consumers."
    AIG is the leading U.S.-based international insurance organization and
among the largest underwriters of commercial and industrial insurance in the
United States. Its member companies write property, casualty, marine, life and
financial services insurance in approximately 130 countries and jurisdictions,
and are engaged in a range of financial services businesses. American
International Group, Inc., common stock is listed on the New York Stock
Exchange, as well as the stock exchanges in London, Paris, Switzerland and
Tokyo.
    Warrantech Corporation, through its subsidiaries, administers and markets
service contracts and after-market warranties on automobiles, automotive
components, recreational vehicles, appliances, consumer electronics, computers
and computer peripherals for retailers and distributors. The Company continues
to expand its penetration into world markets, offering its services in the
United States, Canada, Mexico, Europe, the Caribbean, Puerto Rico and South
America.

    'Safe Harbor' statement under the Private Securities Litigation Reform Act
    of 1995:
    Revenues that may be derived from this agreement are subject to risks and
uncertainties, including, but not limited to, the impact of competitive
products, product demand and market acceptance risks, reliance on key
strategic alliances, fluctuations in operating results, the risk that the
agreement may be terminated prior to its expiration by either party 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 FY and beyond to differ materially from those
expressed in any forward looking statements made by, or on behalf of, the
Company.

SOURCE  Warrantech Corporation