Insurance Auto Auctions Announces Acquisition in Altoona, Pennsylvania

Business Wire, May 26, 2005

WESTCHESTER, Ill. -- Insurance Auto Auctions, Inc., a leading provider of automotive salvage and claims processing services in the United States, today announced the acquisition of Insurance Recovery Center, Inc. located just outside Altoona, Pennsylvania. This 15-acre facility represents IAA's third location in the state and will supplement the Company's coverage in Pennsylvania by leveraging its existing locations in both Pittsburgh and Philadelphia.

"One of our ongoing endeavors at IAA has been to expand our footprint in the northeastern United States, and this acquisition aligns perfectly with that goal," said Tom O'Brien, CEO of IAA. "As we identify opportunities such as this we will take action where we can leverage existing facilities to add new buyers to our growing network. We will continue to identify additional areas in which to supplement our current presence in order to expand our geographic reach."

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 80 sites across the United States.

Safe Harbor Statement

This Report contains forward-looking statements that are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected, expressed, or implied by such forward-looking statements. In some cases, you can identify forward looking statements by use of words such as "may, will, should, anticipates, believes, expects, plans, future, intends, could, estimate, predict, projects, targeting, potential or contingent," the negative of these terms or other similar expressions. The Company's actual results could differ materially from those discussed or implied herein. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company's annual report on Form 10-K for the fiscal year ended December 26, 2004 and subsequent quarterly reports. You should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, the Company undertakes no obligation to publish, update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

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