Insurance Auto Auctions Opens a Greenfield Facility in Little Rock, Arkansas

SCHAUMBURG, Ill., Feb. 10 -- Insurance Auto Auctions, Inc. , a leading provider of automotive salvage and claims processing services in the United States, today opened a greenfield facility in Scott, Arkansas. This new 20-acre facility located in the Little Rock metropolitan area is the company's first location in Arkansas. It features an indoor warehouse that will facilitate indoor Run & Drive(R) auctions and will be used as a vehicle inspection center by insurance company personnel. The facility will increase Insurance Auto Auctions' presence in the South-Central region of the U.S. and will complement IAA's current facilities located in Missouri, Louisiana and northeastern Texas. Since January 1, 2003, IAA has added four new facilities: Little Rock, two facilities acquired in New York and a greenfield in Dothan, Alabama.

"We continue to look for specific geographic opportunities where IAA can expand its reach to new or underserved customers," said Tom O'Brien, CEO of Insurance Auto Auctions. "The Little Rock facility significantly improves our ability to service customers in the state of Arkansas and further expands our coverage in the southern United States. Going forward, we expect to continue strategically expanding our regional and national coverage through acquisitions and the introduction of new greenfield facilities."

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 70 sites across the United States.

Safe Harbor Statement

This press release contains forward-looking information that is 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 information. In some cases, you can identify forward looking statements by our 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 30, 2001 or subsequent quarterly reports. Among these risks are: accelerated departure from conducting business pursuant to the purchase agreement method of sale, which departure could adversely affect the Company's client base; the ability to successfully renegotiate existing purchase agreement contracts; fluctuations in the actual cash value of salvage vehicles; the quality and quantity of inventory available from suppliers; the ability to pass through increased towing costs; that vehicle processing time will improve; that the Company's towing business will reach forecasted levels of profitability; legislative or regulatory acts; changes in the market value of salvage; competition; the availability of suitable acquisition candidates and greenfield opportunities; the ability to bring new facilities to expected earnings targets; the dependence on key insurance company suppliers; the ability of the Company and its outside consultants to successfully implement standardized key processes throughout the Company's operations as well as the ability to successfully complete the re-design of the Company's information systems, both in a timely manner and according to costs and operational specifications; and the level of energy and labor costs.

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

Source: Insurance Auto Auctions, Inc.

CONTACT: Scott Pettit, Chief Financial Officer of Insurance Auto
Auctions, Inc., +1-847-839-4040, or General Inquiries, Chris Kettmann of
Ashton Partners for Insurance Auto Auctions, Inc., +1-312-553-6716

Web site: http://www.iaai.com/