Warrantech Corporation in Agreement With Sempra Energy Solutions
18 December 1998
Warrantech Corporation in Agreement With Sempra Energy Solutions to Offer Home Service Contracts
STAMFORD, Conn.--Dec. 17, 1998--Partnership Could Yield $40 Million in Sales to Warrantech
Warrantech Corporation announced today an agreement with Sempra Energy Solutions, a subsidiary of Sempra Energy , to market home service contracts.
According to Warrantech, under the three-year agreement, the partnership is expected to yield sales to Warrantech of approximately $40 million. Under the terms of the agreement, Warrantech Home Services Company, a subsidiary of Warrantech, and Sempra Energy Solutions will market home service contracts and a variety of energy related products and services. The contract will cover such items as household appliances, as well as heating, air conditioning, plumbing and electrical systems. Sempra Energy Solutions will market the service to customers throughout Southern California with plans to expand through targeted markets throughout the nation.
Joel San Antonio, president and chief executive officer of Warrantech, said, "We continue to fill a need for energy service companies brought about by industry deregulation."
"Based on our experience, consumers have expressed a demand for an alternative home warranty service that offers value and highly responsive customer service," said Frank Wong, vice president of Sempra Energy Solutions, Consumer Markets. "We are looking forward to working with Warrantech to bring such an offering to our customers."
Sempra Energy Solutions provides a broad suite of energy-related products and services in California and nationwide, targeting the consumer, commercial and industrial markets, as well as institutional energy users. The company also owns CES/Way International, Inc., one of the nation's leading energy services companies. Sempra Energy Solutions is a subsidiary of Sempra Energy , a Fortune 500 energy services holding company based in San Diego.
Warrantech Home Service Company, headquartered in Euless, Texas, is a subsidiary of Warrantech Corporation. 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 industry penetration rates, sales projections, 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.