Warrantech International Agreement With Seguros Cruz Del Sur
19 June 2000
To Provide Cross-Marketing of Service Agreements and AdministrationSTAMFORD, Conn. - Warrantech Corporation today announced that its subsidiary, Warrantech International, Inc. entered into a reciprocal agreement with Seguros Cruz del Sur S.A., (Cruz del Sur) to provide cross-marketing services to Cruz del Sur for warranties and service agreements. In return, Cruz del Sur will offer selected insurance products to Warrantech customers in Chile. Cruz del Sur, the leading Chilean insurance company, provides insurance products including service contracts for individuals, businesses and the retail sector. Cruz del Sur currently provides Warrantech with insurance for service contracts sold by falabella, Ripley and DIN who are among the largest retailers in Chile. In announcing Warrantech's agreement, Rick Rodriguez, President of Warrantech International said, "Warrantech is recognized as the premier administrator of service contract programs in Chile and is enthusiastic about expanding our relationship with the premier insurance company in Chile, Cruz del Sur. Our association continues to evolve and bring opportunities that are innovative and unique to the South American market." Mr. Rodriguez added, "We intend to offer both company's products to each other's customers based upon a set of criteria that will ensure the best possible penetration." German Pacheco Matus, Commercial Manager of Cruz del Sur, said, "We expect that our arrangement with Warrantech International will provide us with tremendous opportunity since we will be the first insurance company in Chile to offer its customers service contract products. It is also the first cross-marketing relationship in Latin America for these services." Cruz del Sur, the property and casualty insurance unit of Grupo Angelini, provides a broad range of insurance products for home, life and auto. Grupo Angelini operates businesses in the wood and paper products, fisheries, energy, agriculture, insurance, retail and investment fund sectors. Warrantech Corporation, through its subsidiaries, administers and markets services 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. "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are subject to risks and uncertainties. Other risks and uncertainties include but are 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 cash flow 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.