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Warrantech Signs 5-Year Contract with Lanco, Inc.

3 December 1997

Warrantech Signs 5-Year Contract with Lanco, Inc.; Agreement Expected to Yield $30 Million in Revenues for Warrantech

    STAMFORD, Conn., Dec. 3 -- Warrantech Corporation
announced today that its wholly owned subsidiary, Warrantech
Automotive, has signed a five-year contract with Lanco, Inc. to administer a
private label automotive service contract program for commercial vehicles.
The agreement is expected to produce revenues in excess of $30 million for
Warrantech over the life of the contract.
    Warrantech Automotive President Ronald Glime said, "The Lanco Program is
quite an achievement for Warrantech Automotive.  Warrantech Automotive has
proven itself a first-class competitor and the premiere administrator of
vehicle service contracts in the automotive private label business.  This
'stand alone' commercial vehicle service contract represents an exciting
addition to Warrantech's Private Label Portfolio.  We look forward to
providing the same high-quality service to Lanco, and ultimately, continuing
this relationship for many years to come."
    Lanco, Inc. President Ray Bryan said, "Warrantech Automotive's
administrative infrastructure is by far one of the best in the business."
    Lanco is a provider of vehicle service contracts in the commercial product
industry.  Under the terms of the agreement, Lanco will offer commercial
automotive service contracts through its and Warrantech's national
distribution force.
    Warrantech Automotive is a subsidiary of Warrantech Corporation
which provides business services through its subsidiaries,
which include warranty management, third-party administration for insurance
companies, marketing and training, inbound and outbound call center
teleservices, direct mail and help-desk support to the automotive, consumer
products, computer and financial services industries.  The company is
expanding its international operations by offering its services in the U.S.,
Canada, Mexico, South America, Europe, Caribbean, and Puerto Rico.
    "Safe Harbor" statement under the Private Securities Litigation Reform Act
of 1995: This release contains forward-looking statements that are based upon
Lanco, Inc.'s previous business relationship with a similar service contract
provider.  The release contains forward-looking statements that 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 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