TORONTO, Jan. 18, 2006 (PRIMEZONE) -- Reliant Home Warranty Corporation (OTCBB:RHWC) today announced its exclusive North American license of cutting edge mortgage servicing software developed by the Special Mortgage Application Reliable Technology (SMART(tm)) Group. The SMART(tm) Group is a provider of a suite of technologies and services to the mortgage industry that address the unique needs related to the origination, underwriting and servicing of residential mortgages and new home warranty products.
Boyd Soussana, CEO of Reliant stated that, "Reliant's exclusive licensing of this front end web enabled software platform will enable it to cost effectively originate, service, underwrite and risk manage, mortgages throughout the North American residential market. The SMART(tm) Group has developed this complete web-based mortgage software system exclusively for us. It is robust and scalable and will enable Reliant to make available an online, easy-to-use servicing and origination application software platform to our market. This new wave of client side technologies means lightweight, available anywhere, flexible interfaces that are rich in functionality, easy to use and powerful. Coupled with our planned use of platforms utilizing new Microsoft XML Net Technology, it represents the future of web applications."
Soussana concluded that, "The SMART(tm) platform will be a tremendous addition to our business solutions and will enable us to efficiently launch our mortgage lending platform without the expense of an outside servicer. It will ensure complete, cost effective control of our risk management systems and ultimately lead to our domination of the North American insured sub-prime residential mortgage market."
Canadian source revenue and profits project by the Reliant fiscal consortium made up of Dundee Securities Inc. (Fiscal Advisor), Sodha Associates (International Insurance Counsel), Brit Insurance (Global Reinsurer), Mpire Credit Corporation (Mortgage Brokerage), First National Financial Corporation (Title Insurance and Escrow Service), have been estimated at:
-- 1st Year profit of 12 million net before tax on revenues of
750 million USD.
-- 2nd Year profit of 18 million net before tax on revenues of
1.2 billion USD.
-- 3rd Year profit of 30 million net before tax on revenues of
2 billion USD.
It is projected that U.S. market penetration, when it occurs, will augment these projections by at least a third.
For more information on the Reliant programs visit the Web site at www.relianthwc.com.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical facts may be forward-looking statements. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made to involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. For a summary of such risks and uncertainties, see the Company's periodic reports and other filings with the Securities and Exchange Commission.