World Funding Group Selects Warrantech Corporation
1 June 2000
World Funding Group Selects Warrantech CorporationThree-Year Agreement to Provide Vehicle Service Contracts and Comprehensive Call-Center Support for Internet-Based Auto Loan Processing Centers STAMFORD, Conn., June 1 Warrantech Corporation (OTC Bulletin Board: WTEC), today announced a three-year agreement with World Funding Group, a wholly owned subsidiary of E-CreditProvider.com, Inc., Boca Raton, Fla., a source of comprehensive e-commerce services to retail automobile dealers nationwide. The agreement calls for Warrantech to administer vehicle service contracts, which grant additional coverage to automobile purchasers beyond the manufacturer's warranty, and to provide call-center services to assist in the arrangement and disposition of automotive loan applications. Warrantech provides these services in support of E-CreditProvider.com's new Internet-based, e-commerce solution for retail automobile dealers, called e.Dealer Solutions, a turnkey, e-commerce platform designed to bring traditional independent automotive retailers together with the large and fast-increasing number of new-car buyers that want to select and finance their purchases on-line. "Up to now, traditional automobile dealers have had difficulty participating in the new economy," Joel San Antonio, Warrantech Chairman and CEO, said. "Now, via e.Dealer Solutions, E-CreditProvider.com is providing the traditional automobile dealer with an effective and efficient Internet presence required to participate and succeed in the new economy. We are very excited to be part of this innovative program." E-CreditProvider.com's World Funding Group provides dealers and their customers with service contract options under its Vehicle Repair Solutions brand. World Funding Group also provides its e.Dealer Solutions customers with comprehensive financing process services through its Automotive Vehicle Financing brand, for which Warrantech provides call-center services. Warrantech, a strategic partner The e.Dealer Solutions package provides dealers with a full compliment of auto selection, financing and aftermarket products and services that buyers expect and dealers want to provide, which includes aftermarket service contracts and facilitating the loan application and approval process. "Aftermarket products and services such as extended service contracts are especially important to car dealers in that they provide an important additional revenue stream and boost a dealer's margin on sales," Peter Kokinos, President of E-CreditProvider.com, said. "Warrantech's experience and expertise in administering extended service contracts and in providing assistance to retail customers in the financing process makes them a key strategic partner for us, for our dealers and for their customers. "Our dealer customers demand a reliable and comprehensive e-commerce program and e.Dealer Solutions delivers the broadest range of products, services and technology provided by the best and most-respected companies," Mr. Kokinos added. "That is our strategic advantage." Internet changes vehicle purchasing behavior In the fast-changing "wired" world, the speed and convenience of on-line comparative shopping is increasing the number of new car purchases made over the Internet, rather than in car dealers' showrooms, according to a recent study by Forrester Research Inc., of Cambridge, Mass. Moreover, the study notes that car dealers have been significantly impacted by the increase in the number of on-line car buying sites and are in need of e-commerce solutions that will extend their franchise into the on-line world along with their ability to generate sales of profitable programs and services to on-line customers. "The e.Dealer Solutions program is the first of its kind, an e-commerce solution designed to enhance the sales productivity of automobile dealers in the wired world, not compete with them," said Mr. Kokinos On-line car purchases grow strongly The Forrester study notes that nearly one-third of the 15 million new vehicles purchased in 1998 were bought by those with regular access to the Internet. Forrester predicts that number will nearly double in 2003. In addition, the study discloses that fully eight percent of the 15.7 million vehicles sold in 2003, 1.3 million vehicles, will include extended service contracts selected by on-line buyers. About E-CreditProvider.com E-CreditProvider.com is a new, retail-dealer-oriented e-commerce solution for the automotive industry. Through its various subsidiaries and a network of alliances with leading financial institutions, E-CreditProvider.com provides automotive dealers with customized turnkey e-commerce solutions that instantly tap the growth and potential of the burgeoning Internet-based marketplace. E-CreditProvider.com is also a leading participant in the e-commerce automobile finance arena with sites such as http://www.directautoloan.com, http://www.autoloannation.com and http://www.world13.com. About Warrantech Corporation Warrantech Automotive Corporation, headquartered in Euless, Texas, is a subsidiary of Warrantech Corporation of Stamford, Conn., that, 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, Puerto Rico, the Caribbean and Latin America. Learn more about Warrantech Corporation at http://www.warrantech.com. "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. Other risks and uncertainties include but are not limited to 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 cash flow 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.