Printer Friendly

Warrantech Signs Five-Year Service Pact with Checker Flag Protection, Inc.; Agreement Should Produce $15 Million in Revenues for Warrantech

EULESS, Texas, Nov. 26 /PRNewswire/ -- Warrantech Corporation (Nasdaq: WTEC) announced today that its wholly owned subsidiary, Warrantech Automotive, has signed a five-year contract with Checker Flag Protection(TM), Inc. to administer a private label automotive service contract. The agreement is expected to produce revenues in excess of $15 million over the life of the contract.

Warrantech Automotive President Ronald Glime said, "This new agreement with Checker Flag Protection further highlights Warrantech Automotive's recognition as a premiere third party administrator in the service contract industry. Checker Flag Protection is again another example of Warrantech's practice of establishing long term relationships with industry leaders."

Checker Flag's President Dave Bostic said, "We examined many administrators and Warrantech Automotive systems and staff was by far the best for our needs in the foreseeable future."

Under the terms of the agreement, Checker Flag Protection, a distributor of vehicle service contracts nationally, will offer private label automotive service contracts through its agent and automotive dealer network nationally.

Warrantech Corporation, through its subsidiaries, administers and markets service contracts and after-market warranties on automobiles, automotive components, recreational vehicles, appliances, consumer electronics, computers and computer peripherals for retailers and distributors. The Company continues to expand its penetration into world markets, offering its services in the United States, Canada, Mexico, Europe, the Caribbean, Puerto Rico and South America.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: These forward-looking revenue estimates are based on an analysis of results of comparable programs developed by the principals of Checker Flag protection with other administrators during the last several years. These estimates are subject to risks and uncertainties, including, but not limited to, 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 FY and beyond to differ materially from those expressed in any forward looking statements made by, or on behalf of, the company.

SOURCE Warrantech Corporation
 -0- 11/26/96


/CONTACT: Michael Salpeter of Warrantech Consumer Product Services, 203-975-1100; or Jeffrey Goldberger of Stern & Co., 212-777-7722/

(WTEC)

CO: Warrantech Corporation; Checker Flag Protection, Inc. ST: Connecticut IN: AUT SU: CON

DC -- NYTU035 -- 4195 11/26/96 08:33 EST http://www.prnewswire.com
COPYRIGHT 1996 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 26, 1996
Words:394
Previous Article:Deere & Company Fourth Quarter Earnings
Next Article:IVI Publishing Announces Completion of $3.5 Million Convertible Debt Financing
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters