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Warrantech to Withdraw Bid for Staples Service Contract Program

11 December 2000

Warrantech Corporation to Withdraw Bid for Staples Service Contract Program

    EULESS, Texas., Dec. 11 Warrantech Corporation
announced that it will terminate as of December 15 negotiations for the 
renewal of its existing service contract program with Staples, if mutually 
acceptable terms are not reached by that date.  The current Staples service 
contract program expires in February 2001.
    Joel San Antonio, Chairman and CEO, Warrantech Corporation, said, "The
rate increase needed to sustain profitability for all parties going forward
has not yet been agreed to or accepted by Staples.  This is a key issue for
the resolution of a renewal agreement."  Mr. San Antonio continued, "It is
essential that the negotiations come to a quick conclusion because further
delay will adversely impact any  transition  process."