Insurance Auto Auctions Announces Opening of New Facility in Tukwila, Washington

Business Wire, Jan 6, 2005

WESTCHESTER, Ill. -- Insurance Auto Auctions, Inc. (Nasdaq: IAAI), a leading provider of automotive salvage and claims processing services in the United States, today announced the opening of a new facility in Tukwila, Washington. Located approximately 10 miles southeast of downtown Seattle, the Tukwila facility is the result of a relocation of IAA's Woodinville, Washington auto salvage operation. In 2002, the Company received notice from Washington's King County of its intent to condemn the Woodinville site to open a water treatment facility there. In spite of this unexpected move, the Company was able to obtain this centrally-located 25-acre Tukwila facility which features an indoor auction capability and complements existing regional locations in Auburn and Spokane, Washington, Portland and Eugene, Oregon, Boise, Idaho and Salt Lake City, Utah.

"The relocation to this strategically located facility is further evidence of our commitment to provide exceptional salvage services to the insurance industry at both a regional and national level," said Tom O'Brien, CEO of IAA. "With our new location in Tukwila, IAA has the capacity to provide salvage services for losses occurring throughout the state of Washington and to leverage other existing operations in the northwestern corner of the country. In addition to identifying ways to expand into new geographic locations, as we have done throughout the past few years, we will continue to recognize opportunities such as this that cost effectively leverage our existing locations and enhance our overall service offering to customers."

About Insurance Auto Auctions, Inc.

Insurance Auto Auctions, Inc., founded in 1982, a leader in automotive total loss and specialty salvage services in the United States, provides insurance companies with cost-effective, turnkey solutions to process and sell total-loss and recovered-theft vehicles. The Company currently has 78 sites across the United States.

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Additional information about Insurance Auto Auctions, Inc. is available on the World Wide Web at www.iaai.com.