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FOR IMMEDIATE RELEASE

Consumers Also Renewing Contracts At Higher Rate
HOME WARRANTY SALES NEARING 90% OF HOME SALE TRANSACTIONS; SETS RECORD

DUBLIN, CA, March 28, 2002 -- Nearly nine out of every 10 existing homes sold in California during 2001 carried a home warranty contract, representing the highest percentage in the 24-year history of the state's home warranty industry, the Home Warranty Association of California (HWAC) announced today.

James Armstrong, president of HWAC and executive vice president of Dublin, CA-based HISCO Home Warranty, reports that 390,000 home warranty contracts were sold during 2001.

Based on figures provided by Dataquick showing that 440,822 existing homes were sold in California during the year, 88.5 percent of these transactions included a home warranty. This compares to a market share of 86.1 in 2000 and is the highest percentage since data has been compiled by HWAC, Armstrong said.

HWAC emphasized that data shows that consumers are also renewing home warranty contracts at an increasing rate. The association reports that there was a 22 percent increase in renewals from 2000 to 2001.

"This is a clear indication that homeowners not only recognize the value of home warranties, but have a greater understanding of how to use them," said Armstrong. “Additionally, the fact that virtually nine out of 10 home sales include a home warranty shows that all parties to the transactions -- real estate professionals, buyers and sellers -- see the value of risk reduction provided by home warranties, particularly during the first year of home ownership," Armstrong stated.

Typically, a home warranty covers a home's major operating systems for one year after the close of escrow. Items covered include plumbing, heating and electrical systems, most built-in appliances, and water heaters. In recent years, most HWAC member companies have provided additional coverage for homeowners for such items as air conditioners, washer/dryers and refrigerators.

HWAC is a statewide organization of home warranty companies representing approximately 95 percent of warranty contracts sold in California.

Member firms include American Home Shield, AON Home Warranty, Buyers Home Warranty Company, Fidelity Naitonal Home Warranty Company, First American Home Buyers Protection, and Old Republic Home Protection, Inc.

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