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Warrantech Signs Contract With CompuSmart

4 August 1998

Warrantech Signs Contract With CompuSmart

    STAMFORD, Conn.--August 4, 1998--Warrantech Corporation (NASDAQ NMS: WTEC) announced today that its wholly-owned subsidiary, Warrantech Consumer Product Services, signed a three-year agreement to market service contracts to customers of CompuSmart, a franchise channel of Hartco Enterprises, Inc. (MSE, TSE:HTC) in Canada.
    Hartco, with $700 million in fiscal year 1998 sales, is the largest franchisor of microcomputer resellers in Canada. Hartco established the CompuSmart network of stores to address the needs of the growing retail computer market in Canada. In addition to recreational and home office computer users, CompuSmart caters to all segments of the business, government and education communities. The company currently operates 14 stores located in Edmonton (2), Brandon, Hamilton, Victoria, Saskatoon, Ottawa, Orangeville, Calgary and Vancouver, and anticipates further expansion this year.
    Warrantech Consumer Product Services President, Rick Rodriguez said, "This is an important expansion of our business north of the border. We believe CompuSmart is the premier retail provider of personal computers in Canada. CompuSmart's decision to enter into this Agreement recognizes Warrantech's preeminence in the service contract industry and affirms CompuSmart's commitment to its customers. By providing CompuSmart's customers with world class service, we believe we will significantly enhance Warrantech's long-term growth potential in Canada, particularly in those other retail markets in which these customers shop."
    Mike Gardner, President of CompuSmart Canada, said, "We are confident and pleased about the joint program we've created with Warrantech. We think the CompuSmart customer is the real winner here. We have worked very hard to find a program that truly reflects the needs of today's computer shopper. The expertise and experience shared between our companies works hand-in-hand with what CompuSmart customers have come to expect. We look forward to a continuing relationship and their support of our customer base."
    Warrantech Consumer Product Service is a subsidiary of Warrantech Corporation (NASDAQ NMS: WTEC) 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, Central and South America, Europe, the Caribbean, and Puerto Rico.

"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, 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 fiscal year and beyond to differ materially from those expressed in any forward looking statements made by, or on behalf of, the company.