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Warrantech Subsidiary to Market Vehicle Service Contracts Via Internet

1 February 1999

Warrantech Corporation Subsidiary in Agreement to Market Vehicle Service Contracts Via Internet; Venture To Develop Websites For Auto Dealers


    STAMFORD, Conn.--February 1, 1999--Warrantech Corporation (NASDAQ NMS: WTEC) announced today that its Warrantech Automotive, Inc. subsidiary has entered into an agreement with AUTOBYPC, Inc., Long Beach, N.Y., to market and provide Warrantech Automotive service contracts and warranties through automotive dealers nationwide, from consumers accessing via Internet sites.
    AUTOBYPC developed and operates an Internet website to bring customers to automobile dealerships. The agreement calls for Warrantech Automotive to market its service contracts and warranties to consumers on AUTOBYPC's national website, while consumers are viewing vehicles for sale or lease at participating dealerships.
    Ronald Glime, President of Warrantech Automotive, said, "This agreement is another step in our Company's strategic plan to be at the forefront of this industry and maintain internally as our sole focus, the marketing and administration of service contracts and warranties. We intend to step up our efforts in pursuing Strategic Partners that can provide turnkey Internet-access for our services and other products to consumers, thereby avoiding the time and resource development cost at Warrantech."
    Glen Morrison, President of AUTOBYPC, Inc., said, "We had the opportunity to join forces with other providers of vehicle service contracts. After careful review of the Warrantech product, their customer service and claims handling, and the introduction of their latest product VSCONLINE, it became immediately apparent that Warrantech is at the forefront of their industry and totally committed to customer satisfaction. We also were very impressed after meeting several of their independent agents and their individual commitment to this latest service and their strong support of Warrantech as a company."
    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.