Insurance Auto Auctions Rejects Copart's Merger Proposal

17 March 1999

Insurance Auto Auctions Rejects Copart's Merger Proposal

    BENICIA, Calif.--March 17, 1999--Copart, Inc. today announced that it recently made a proposal to Insurance Auto Auctions whereby IAAI would have merged into Copart. Under the proposal, IAAI shareholders would have received Copart stock in exchange for their IAAI shares at a certain ratio. The proposed transaction valued IAAI shares at approximately $13.27 per share given the closing prices of IAAI and CPRT on March 16, 1999. The proposal was preliminary; No formal negotiations were held and the proposal was subject to development of a definitive agreement containing other standard terms.
    IAAI's interim Chief Executive Officer, Christopher G. Knowles, notified Copart on March 16, that IAAI rejected Copart's proposal.
    Copart, founded in 1982, provides vehicle suppliers -- primarily insurance companies -- with a full menu of services to process and sell salvage vehicles through auctions, principally to licensed dismantlers, rebuilders and used vehicle dealers. Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes, or recovered stolen vehicles for which an insurance settlement with the vehicle's owner has been made. Operating 62 facilities in 32 states, Copart also provides services to other locations through its national network of independent salvage vehicle suppliers.