Insurance Auto Auctions and Verastar Join Together

Business Wire, Feb 4, 2008

WESTCHESTER, Ill. -- Insurance Auto Auctions, Inc., a leader in automotive total loss and specialty salvage services in the United States, today announced that it has entered into a definitive agreement to acquire Salvage Disposal of Georgia and Auto Disposal of Nashville, and related entities. Salvage Disposal and Auto Disposal currently operate under the name "Verastar" in multiple locations which include five auction sites in Georgia, two in Kentucky, three in Tennessee and one in North Carolina. The acquisition, which shall include all of the Verastar operations, is the second largest transaction in IAA's 26 year history. The newly acquired auction sites play a strategic role in IAA's expanding geographic service coverage in the Southeast. The new sites, complemented by existing IAA facilities in surrounding states, will allow IAA to further improve its comprehensive remarketing services coverage throughout the entire United States.

"We are thrilled with the opportunity to now work with an organization with as strong a reputation for high quality service as Verastar. Verastar has been a leader in this industry for many years and we look forward to combining forces so that together we will be able to provide a level of service on a national scale that is unsurpassed in our industry", said Tom O'Brien, President and CEO of IAA. "As we assume daily operations in these new locations, we look forward to strengthening local relationships and expanding services to all of our customers using the combined resources of IAA and Verastar."

Janet Covey, President of Salvage Disposal of Georgia added: "After carefully considering the options for Verastar, Bob Poole and I agreed that joining forces with IAA would provide the best possible future for both our employees and our loyal customer base. We believe that IAA's auction model which combines live auctions with live auction internet bidding is the best way to optimize selling prices and IAA has a proven track record of exceeding customer expectations. Bob, Chris (Covey), Cyclone (Covey) and I are excited to be a part of the blending of these two outstanding organizations."

The transaction is scheduled to close and become effective on Friday, February 8, 2008.

Stephens Inc. served as the financial advisor to Verastar in the transaction.

About Insurance Auto Auctions

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 133 sites across the United States and 12 in Canada which operate under the name "Impact Auto Auctions."

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