Warrantech to Market Home Service Contracts To Customers of Penn Federal Savings Bank

Warrantech Corporation has announced that its wholly-owned subsidiary, Warrantech Home Service Company, has signed a one-year renewable agreement to market home service contracts to customers of Penn Federal Savings Bank, located in West Orange, NJ, through its subsidiary Penn Savings Insurance Agency, Inc.

Under the terms of the agreement, Warrantech will provide home service contracts to Penn Federal customers through direct mail, telemarketing, statement inserts and branch office distributions. The contracts, which were created to complement homeowner's insurance, provide for the repair or replacement of home mechanical systems and appliances that fail due to aging and normal usage. Penn Federal Savings Bank currently has approximately 100,000 accounts within its 18 branch network in New Jersey.

"This agreement provides us with the opportunity to offer our customers an affordable and financially secure home warranty product which protects against the cost of most mechanical systems and appliance repairs in the home," said Joseph LaMonica, President of Penn Federal Savings Bank.

In May 1997, MGIC Investor Services Corporation (MISC), a subsidiary of MGIC Investment Corporation and Warrantech entered a five-year agreement to jointly market Warrantech's home service contracts nationally. The home service contracts are issued and serviced by Warrantech Home Service Company, marketed nationally by MISC, and insured by American Zurich Insurance Company, rated A-plus Superior by A.M. Best Company.