WARRANTECH HIRES ROTHMAN TO LEAD HOME WARRANTY EFFORT

 

Industry Veteran to Develop Home Warranty Business

 

BEDFORD, Texas - March 23, 2004 - Warrantech Corporation (OTC: WTEC), a leading independent provider of service contracts and after-market warranties, on March 15 appointed Evan M. Rothman president of Warrantech Home Service Company.


Rothman, 36, will be responsible for growing Warrantech's Home Warranty business in the U.S. and Canada. His focus will be building a distribution network of realtor accounts that will help drive revenue growth and expanding on opportunities with dealers in the Automotive and Consumer segments. Rothman will report directly to Joel San Antonio, chairman and CEO of Warrantech Corporation.
 

"Warrantech is committed to attaining a leadership position in the Home Warranty Market consistent with the positions held by Warrantech in the Automotive and Consumer Products industries," San Antonio said. "Rothman is an important addition to Warrantech's management team. As a proven leader, Evan has the management expertise and industry contacts we need to move this program forward. Under his leadership, Warrantech plans to methodically grow this business division."
 

Prior to joining Warrantech Home Service Company, Rothman spent more than 14 years in a variety of increasingly responsible business development, operations, financial and management positions with leading home service and warranty providers. Most recently, he was national director for Fort Lauderdale, FL-based 2-10 Home Buyers Warranty, a provider of residential home warranty programs. Before 2-10, he held business development and operational positions with companies such as RHI Management Resources, Global Internet Group, Inc. and Cross Country Home Services / HMS, Inc.

 

 

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.

 

 

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995:

Except for the historical information contained herein, the matters discussed in this release may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company makes such forward-looking statements under the provisions of the "safe harbor" section of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the Company's views and assumptions, based on information currently available to management. Such views and assumptions are based on, among other things, the Company's operating and financial performance over recent years and its expectations about its business for the current and future fiscal years. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to be correct. Such statements are subject to certain risks, uncertainties and assumptions, including, but not limited to, (a) prevailing economic conditions which may significantly deteriorate, thereby reducing the demand for the Company's products and services, (b) availability of technical support personnel or increases in the rate of turnover of such personnel, resulting from increased demand for such qualified personnel, (c) changes in the terms or availability of insurance coverage for the Company's programs, (d) regulatory or legal changes affecting the Company's business, (e) loss of business from or significant change in relationship with, any major customer of the Company, (f) the ability to successfully identify and contract new business opportunities, both domestically and internationally, (g) the ability to secure necessary capital for general operating or expansion purposes, (h) adverse outcomes of litigation, (i), if any of the insurance companies, which insure the service contracts, marketed and administered by the Company were unable to pay the claims under the service contracts, it could have a materially adverse effect on the Company's business,(j),if Butler Financial Solutions, LLC is unable to cover the claims previously insured by Reliance Insurance Companies, or if the Company's current insurance carrier ceases to provide credit to the Company in order to fund any shortfalls required by Butler; since management is not able to determine the Company's potential claims liability, if any, under such contracts, the Company has not taken a reserve for claims losses for which the Company may ultimately be liable, (k) the effect on future periods resulting from the Company's change in accounting policy with respect to the timing of recognition a portion of its revenues from the administration of service contracts (l) the non-payment of notes due from an officer and two directors of the Company in 2007 (m) the outcome of the review currently being conducted by the SEC staff of the Company's financial statements and related disclosures, and (n) the Company's ability to expand its core business and to increase its profit margin on its overall business. Should one or more of these or any other risks or uncertainties materialize or develop in a manner adverse to the Company, or should the Company's underlying assumptions prove incorrect, actual results of operations, cash flows or the Company's financial condition may vary materially from those anticipated, estimated or expected.

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Contacts:

Richard Gavino, Chief Financial Officer

Virginia Stuart, VP-Investor Relations

 

Warrantech Corp.

Michael A. Burns & Associates

 

(817) 785-1366

(214) 521-8596

 

richard_gavino@warrantech.com

vstuart@mbapr.com