Warrantech Corp Subsidiary in Agreement With Risk Management Group
27 January 1999
Warrantech Corporation Subsidiary in Agreement With Risk Management Group of Marietta, Georgia
STAMFORD, Conn.--January 27, 1999--Company to Administer Service Contract Program For USDA
Employee Services
Warrantech Corporation (NASDAQ NMS: WTEC) announced today that its wholly-owned subsidiary, Warrantech Automotive, Inc., has entered into an agreement with Risk Management Group (RMG) of Marietta, Georgia, to provide administrative services on behalf of RMG's exclusive agreement to offer extended service contracts, mechanical breakdown insurance and product warranties to the U.S. Department of Agriculture Employee Services and Recreation Association (ESRA).
The USDA's ESRA, with over 100,000 members, is an independent benefit association for employees of the U.S. Department of Agriculture. The agreement calls for Warrantech to provide administrative services for RMG's private label program, called RMG Car Care. RMG Car Care will offer the products through direct employee solicitation and over the Internet.
Warrantech Automotive President, Ronald Glime, said, "The selection of Warrantech as the administrator of these programs is a significant event in our efforts to become the premier product development, marketing and administrative organization in the private label program marketplace."
Mr. Glime added that Warrantech Automotive will work closely with RMG to develop communications materials and an Internet site to market the program to USDA ESRA members.
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.
This release is available on the KCSA Worldwide website at www.kcsa.com.