NEWS RELEASE

MIDDLETOWN, NY (October 2, 2003) -- VAC Service Corp. has implemented a series of promotions in its Operations and Executive Divisions designed to increase efficiency, enhance communication, and stimulate growth while allowing the nation's leading service company to better meet customer needs, it was announced by Jim Tucker, President & CEO.

Within VAC's Operations Division, Jeff Hayden has been named to the new position of Director of Business Development. Hayden is now responsible for facilitating the development of strategic relationships with key VAC partners. Hayden joined VAC in the spring of 2002 in the position of National Service Director. He is a veteran of the service field who came to VAC from Montgomery Ward where he had been responsible for service plan marketing operations of 250 retail locations with annual revenues exceeding $76 million. Prior to that, Hayden spent more than a decade with Sun Television & Appliances, Columbus, OH, as Corporate Service Manager.

Also in the Operations Division, Catrina Beader has been named Director of Client Relations, responsible for providing high level client support while responding to and resolving issues, and developing strategies to ensure client satisfaction. Beader joined VAC in 1997 as a Customer Service Supervisor. She was subsequently promoted to Assistant Manager, Customer Service, and then transferred to Operations as Account Support Coordinator. In the spring of 2002, she was promoted to Director of Operations, a position she held until named to her new position.

In VAC's Executive Division, Barry Gosset has been appointed Director of Risk Retention. He is responsible for insurance and state regulation compliance and new program development. Gosset joined VAC Service in 1997 as Director of Claims, a position in which he was responsible for training claims personnel, developing training manuals and materials, evaluating service plans and supervising the claims department. Previously he had been with Citizens Service Corp., where he was Vice President and a principal in the company, a designer of new products for automobile service programs. He also brought to VAC some 15 years of insurance area experience with The DSN Companies, where he was Executive Vice President.

VAC Service administers warranty and extended service programs for a wide variety of products, including consumer and office electronics, electric housewares, major appliances, lawn and garden equipment, power tools, exercise and fitness equipment, bicycles, cameras, watches and jewelry, and now automobile tires, and more. VAC is also deeply involved in digital satellite system installation and service, software support, PC installation, and a wide variety of teleservices.

VAC Service Corp. is headquartered at 99 Tower Drive, P.O. Box 730, Middletown, NY 10940-0730. Telephone is toll-free 1-800-431-5843. Fax is (914) 692-3620. Visit VAC Service Corp.'s web site at www.vacservice.com. In addition to its executive offices and teleservices center in Middletown, VAC maintains regional offices on Long Island, NY, Las Vegas, NV, Denver, CO, Cincinnati, OH, Chicago, IL, and Orlando, FL.

A subsidiary, VAC Service Corp. of Canada, Ltd.(www.vacservice.ca), maintains regional sales offices in Toronto, ON, Montreal, QUE, and Vancouver, BC, as well as a full-service (sales, administration, and teleservices) office in Ottawa, delivering an uninterrupted service program 24 hours a day, seven days a week, 365 days a year. VAC Europe is based in the U.K.