Warrantech Corporation Expands Presence in Peru
20 July 1999
Warrantech Corporation Expands Presence in Peru
STAMFORD, Conn.--July 20, 1999--Relationship With Ripley
Warrantech Corporation announced today that its wholly-owned subsidiary, Warrantech International, Inc., has expanded its presence in Peru by signing an agreement with saga falabella S.A. whereby saga falabella will sell Warrantech International's extended service contracts on all of its consumer electronics and appliances at its Peruvian operations. In addition, Warrantech announced its plans to broaden its relationship with Comercial Eccsa S.A. (d.b.a. Ripley) in Peru.
The agreement with saga falabella, slated to launch in the next 30 days, is expected to generate $1.25 million per year in revenues for Warrantech. Saga falabella, with six locations in Peru, is one of the premier retailers in Peru and is part of falabella group, which is headquartered in Chile and has operations in Argentina in addition to Chile and Peru. Warrantech currently administers saga falabella's contract program in Chile.
In December 1998, Warrantech announced the signing of a three-year agreement with Ripley. To expand its presence and augment its operations in Peru, Ripley is adding an additional "superstore." Warrantech will administer the service contract program in this superstore that is expected to generate an additional $1 million per year in revenues for Warrantech. Ripley is one of Chile's premier retailers with 17 retail locations throughout the country and Peru, netting over U.S. $500 million in annual sales.
Rick Rodriguez, President of Warrantech International, stated, "Part of Warantech's international strategy is to grow its existing business and to establish the Company as the leading extended warranty administrator in South America. By continuing to work with saga falabella and Ripley in their Peruvian operations, Warrantech is positioned to take advantage of this strong and potentially lucrative market."
Warrantech Corporation, through its subsidiaries, administers and markets service contracts and after-market warranties on automobiles, automotive components, recreational vehicles, homes, appliances, consumer electronics, 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.
ASafe 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.