Warrantech International Signs Three Year Contract With Comercial Eccsa S.A. Ripley of Chile; Agreement to Add $4.5 Million in Revenue

Business Wire, Dec 16, 1998

STAMFORD, Conn.--(BUSINESS WIRE)--Dec. 16, 1998--Warrantech Corporation (NASDAQ: WTEC) announced today that its wholly-owned subsidiary, Warrantech International, Inc., has signed a three-year agreement with Comercial Eccsa S.A. (d.b.a. Ripley) whereby Ripley will offer point-of-sale service contracts on all its consumer electronic and appliance products under a Warrantech-designed and administered program.

The agreement is expected to yield approximately $4.5 million in revenues for Warrantech over the life of the contract.

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. Ripley has recently announced that they plan to open five more locations within the upcoming 18 months. In addition to their stores, Commercial Eccsa S.A. operates the franchise for Radio Shack in Chile. Warrantech will be offering Service Contracts on all qualifying products sold by Radio Shack with the exception of the products carrying the brand Tandy, Optimus and Radio Shack.

Warrantech International's Managing Director, Jorge Joison, said, "The signing of this contract further enhances Warrantech's position as a dominant player in the Chilean retail market."

Warrantech Home Service Company, headquartered in Euless, Texas, is a subsidiary of Warrantech Corporation. 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.

"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, 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.