Warrantech Corporation Repurchases Shares

26 April 1999

Warrantech Corporation Repurchases Shares

    STAMFORD, Conn.--April 26, 1999--Warrantech Corporation announced today that the Company has repurchased 255,000 shares of its common stock from Jeff White and William Tweed, directors of the Company.
    This brings the total number of shares repurchased by the Company to 1,085,300, for the fiscal year ending March 31, 1999.
    The Company said that Messrs. White and Tweed decided to sell the shares of stock in order to satisfy certain tax obligations.
    Commenting on the announcement, Joel San Antonio, President and Chief Executive Officer of Warrantech, said, "Over the course of the past year, the Company has made great progress in increasing revenues by signing new contracts and continuing cost-cutting initiatives. With the current price of Warrantech's stock, it is our belief that the stock is undervalued. Given the Company's formula for block share buybacks, which is at a small discount to the market price, the Company deemed it prudent to purchase these shares at this time."
    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.
    The information contained in this news release, other than historical information, consists of 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, and prior releases, are available on the KCSA Worldwide website at www.kcsa.com.