Warrantech Corporation - Consumer Financial Services

(800) 544-9510
2200 Highway 121

Suite 100

Bedford, Texas 76021
www.warrantech.com

Business Description

Warrantech, through its wholly owned subsidiaries, designs, develops,
markets and acts as a third party administrator for programs ("Programs") for
service contracts, limited warranties and replacement plans (collectively,
"Plans"). The Company provides these services to a variety of clients in
selected industries. On a Program by Program basis, the Company contracts with
highly rated independent insurance companies or risk retention groups available
to provide coverage for the Plans sold or issued under the Programs. This
coverage obligates the insurer to pay the cost of repairs or replacements of the
products covered by the Plans.

Plans issued under the Company's Programs provide consumers with
expanded and/or extended product breakdown coverage for a specified period of
time (and/or mileage in the case of automobiles and recreational vehicles),
similar to that provided by manufacturers under the terms of their product
warranties. Coverage generally provides for the repair or replacement of the
product, or a component thereof, in the event of its failure. The Company's
Programs provide clients with the opportunity for increased revenue and income
without incurring the costs and responsibilities of operating their own
programs.