Warrantech Corporation, a service contract and aftermarket warranty provider, announced Jan. 2 that an agreement has been reached with Automotive Investment Group, a general agent on the East Coast. Under the terms of the agreement, Automotive Investment Group will provide marketing services for reinsurance programs for large automobile dealerships.

The terms of the contract call for Warrantech Automotive to begin marketing the new reinsurance program to the nation's larger automobile dealerships on Jan. 1. Automotive Investment Group, a provider of automobile reinsurance programs, speculates the incremental new contracts under this program that could be written during the first year of the program, based on its current business volume, could add an additional 25 percent to 30 percent in new business volume for Warrantech Automotive. This program will be insured through Heritage Insurance Risk Retention Group and reinsured by American Re an A rated carrier.

"The Automotive Investment Group contract is a milestone for Warrantech. The principals are highly respected and regarded as a provider of offshore captive reinsurance programs to large dealerships," Joel San Antonio, chairman and chief executive officer of Warrantech, said. "This marketing agreement is a tremendous achievement for Warrantech and offers significant opportunity for expanding our market share. As a result, Warrantech is gearing up for an aggressive market launch in January 2002."

About Warrantech

Warrantech Corporation 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, Puerto Rico and Latin America. For additional information on Warrantech, access www.warrantech.com.