I don't remember exactly when, but they replaced BOTH of my keys under warranty. My car is a very early '01 model, I took delivery within 30 days of the first 203 car being shipped to the states. It could be that your car is a little later built, after the key was updated. If he just told you without looking up your VIN or anything, then he might be blowing smoke.

I do know that on MY car there was a recall on the keys. These keys work by IR and RF. My early 210 car had only IR, but it still worked more than five feet from the car. I think you need to investigate a little further. I would suggest starting your research in the owners manual. It is very complete.

Good luck,