CompUSA and Warrantech Terminate Relationship.

STAMFORD, Conn.--(BUSINESS WIRE)--June 30, 1999--

Warrantech Corporation (NASDAQ NMS:WTEC) announced today that CompUSA Inc. ("CompUSA") gave Warrantech Help Desk, Inc. ("WHDI") formal written notice that the Administration Agreement ("Agreement"), dated August 18, 1995, between CompUSA and Warrantech Consumer Products Services, Inc. ("WCPS") (predecessor in interest to WHDI), has been terminated effective July 28, 1999.

Pursuant to this Agreement, Warrantech has served as the administrator of CompUSA's extended service plan program. Termination of the Agreement upon thirty (30) days prior written notice was an option that became available to CompUSA following its rejection of the premium rate increase previously announced by CIGNA Property & Casualty Insurance Company ("CIGNA"), the insurer under the extended service plan program.

Although CompUSA has rejected the premium increase, it has informed WHDI that it will extend the relationship for 30 days under the terms of the Agreement and will remit premium to WHDI at the new rates with respect to all extended service plans sold during this period. WHDI has not been advised of, and has no information related to, the entity that will succeed WHDI as the administrator of the extended service plan program.

Following receipt of this termination notice, WHDI formally notified CompUSA, in a letter dated June 28, 1999, that the Computer & Office Products Service Agreement ("Service Agreement"), dated August 18, 1995, between CompUSA and WCPS (predecessor in interest to WHDI), has been terminated effective September 28, 1999. Pursuant to the Service Agreement, CompUSA has served as WHDI's primary provider of repair services for computer hardware and related peripherals. WHDI is presently concluding an agreement with BancTec Services USA pursuant to which BancTec Services USA will replace CompUSA as the primary provider for such services.

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

The information contained in this news release, other than historical information, consists of forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the effectiveness of cost containment measures and 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 and prior releases are available on the KCSA Public Relations Worldwide website at www.kcsa.com.