September 12, 2002

WARRANTECH ANNOUNCES AGREEMENT WITH MARTA COOPERATIVES STRONG BUY RECOMMENDATION REITEREATED

Warrantech Corporation announced on September 12, 2002 that the MARTA Cooperative of America has designated Warrantech as the only "endorsed" provider of extended service contracts for its 100 active owner-members. MARTA represents more than 100 retailers that sell through 450 store fronts domestically with over $2.0 Billion in sales. Under this agreement, Warrantech will provide MARTA members entry into its Internet-based software platform Warrantech Consumer Products Services "WCPS" Online which will allow MARTA members easy and fast access to administer service contracts; including registration, verification and processing of claims on-line.

Warrantech was picked by MARTA because of its record for on-time claims payment, its unique replacement program and the up to date on-line service. We believe the fact that Warrantech was designated as the only "endorsed" provider of extended service contracts is further validation of Warrantech"s service and administrative ability.
SUMMARY AND CONCLUSION:

Since the date of our recent Quarterly Research Update, (September 3, 2002 - Price $0.86) the common stock of Warrantech set a recovery high or $1.19 per share on relatively high volume. This is the highest close since April 2000 and indicates to us that accumulation is indeed taking place. At its present prices, the stock sells for a price earnings ratio of 3.7 based on our conservative EPS estimate for FY3/31/03 of $0.30 and for a price earnings ratio of 2.3 based our EPS estimate for FY3/31/04 of $0.48. Our updated price target of $2.25 still affords investors a possible return over 100% from the current level.

The STRONG BUY recommendation is reiterated.

J.M.Dutton & Associates, LLC. John M. Dutton, President and Supervisory Analyst, 1129 Manning Drive, Suite 310, El Dorado Hills, CA 95762 Phone (916) 941-4985, Fax (978) 418-6422 Email: [email protected] Web site: www.JMDutton.com

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" Copyright, 2002, by J.M. Dutton & Associates, LLC.