WarrantyNow

WarrantyNow offers Extended Service Contracts ("ESC") on-line.

An ESC provides for service or repair on a product that extends beyond the original manufacturing warranty, if any. ESCs are generally purchased at the point of sale, marketed by salespersons for the retail establishment selling the product.

ESCs are high margin, high profit products for retailers and distributors. Traditional retailers focus their sales force on selling ESCs. Depending on term and service options, ESCs are typically priced at between 15-25% of the original product price, with the margin to the retailer as high as 40%-50% of the price of the ESC.

WarrantyNow views its market as both traditional "bricks and mortar" retail and on-line sales. The growth in on-line sales of products provides WarrantyNow with a tremendous opportunity to supply the on-line marketplace with an efficient solution for ESC distribution. There is currently no avenue to sell ESCs through on-line purchases. In the traditional space, the Company can compete with retailers by providing consumers with an on-line alternative to the retail salesforce, a web site where they can purchase ESCs and manage their ESC inventory for any product they buy, regardless of where they purchase it.

By utilizing on-line efficiencies and eliminating the retail sales commission, WarrantyNow will reduce the cost to consumers while maintaining high margins.

ESC administrators, like in the traditional space, will carry out the task of actually administering the ESC once it has been sold. The Company will partner with as many administrators as possible in order to be able to offer ESCs on the widest selection of products as possible, and in order to guarantee the buyers are offered competitive prices. As in the off-line world, the administrators will offload risks inherent in ESCs to insurance companies.

In addition to ESCs, WarrantyNow has expanded its offerings to include in-home installation (such as high-end home theater systems) and product authentication (used primarily for auction sites for buyers to authenticate goods).

The Company is generating revenue from its first online retail affiliate, Spidergear.com, which went live in June. The Company is also in discussions with such online retailers as Wal-Mart Online, Amazon.com, shop.theglobe.com, Open Market, ShopNow and many others.

The Company recently received $5 million  from CNET in a convertible note offering.  Other investors include Peggy Taylor,  Senior Vice President of PeopleSoft; B.V. Jagadeesh, CTO and co-founder of  Exodus Communications; and Donald G. Jones. To date, the Company has raised  $14.2 million in private equity and convertible debt.

Adrian Vanzyl and Dave Burlington have  joined the Company as CEO and President, respectively. Dr. Vanzyl was Group  Manager of Microsoft's bCentral business development group and VP International  at LinkExchange (which Microsoft acquired in 1998).  Mr. Burlington was formerly  General Manager and VP of PeopleSoft, where he managed its Enterprise  Performance Management product line of business intelligence applications.

Ronald Goedendorp is co-founder and Chairman of WarrantyNow. Mr. Goedendorp has  extensive experience in e-commerce, management, business development, marketing,  database and transaction procesing systems. Mr. Goedendorp is a graduate of the  University of California, San Diego.

Vahid Razavi is Vice President and co-founder. Mr. Razavi comes  from Exodus Communications and has experience in leading e-commerce and Internet companies.

WarrantyNow has ceased operations.

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