Warrantech European Subsidiary in Agreement With Scottish Telecom

4 November 1998

Warrantech European Subsidiary in Agreement With Scottish Telecom; Three Year Agreement Valued At $5.7 Million

    STAMFORD, Conn.--Nov. 4, 1998--Warrantech Corporation announced today that its European subsidiary, Warrantech Europe PLC, has signed an agreement with Scottish Telecom, the mobile phone subsidiary of Scottish Power, to provide administration and service contracts for Scottish Telecom's cellular phone portfolio.
    The Company said that Scottish Power consolidated their expanding cellular phone "Talk Insure" programs with Warrantech Europe PLC. The agreement is for three years and valued at $5.7 million, based on Scottish Telecom's current cellular telephone portfolio and growth expectations
    In announcing the agreement, Joel San Antonio, Chairman and Chief Executive Officer, of Warrantech, said, "The contract with Scottish Telecom further demonstrates the success of our global strategy to increase our revenue base internationally."
    Peter Wilton, Warrantech Europe's Managing Director, said, "Winning the Scottish Telecom account in this particularly competitive industry sector, is a confirmation of our ability to add real value to our client's core business."
    Warrantech Corporation, through its subsidiaries, 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, Mexico, the United Kingdom, Puerto Rico and Latin America.
    "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 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 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.
    This release is available on the KCSA Worldwide website at www.kcsa.com.