Insurance Auto Auctions Expands Geographic Reach Through New Locations In Pennsylvania

    SCHAUMBURG, Ill., Feb. 21 Insurance Auto Auctions, Inc.
, a leading provider of automotive salvage and claims processing
services in the United States, today announced the opening of a new greenfield
location that will serve Philadelphia, Eastern Pennsylvania, and Northern
Delaware from its base outside of Philadelphia.  The new site covers
approximately 17 acres and includes an adjacent property available for future
development.  Vehicles are now being accepted at the site.
    The company also announced today that it has acquired Pittsburgh Auto
Salvage Service. This acquisition expands IAA's coverage in Western
Pennsylvania to include Pittsburgh, Eastern Ohio and Northern West Virginia.
The two new locations bring the company's total to 58 auction sites.
    "These new locations are excellent strategic fits as we pursue enhanced
support for our customers in the heavily populated Northeastern United
States," said Tom O'Brien, Chief Executive Officer.  "The sites also give us
the critical mass necessary to provide time and money-saving services such as
vehicle enhancement, FastTrack(R) Appraisal and the Run & Drive(SM) auction
that our customers have embraced so well in other markets."
    O'Brien cited the two latest locations in Pennsylvania as evidence of the
company's continuing dedication to geographic expansion.  "Throughout the
coming year we will continue to explore additional opportunities to increase
market coverage through acquisition and new site development in markets where
we can add value," he added.

    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 58 auction
sites across the United States.
    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, 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, Form 10-K for the fiscal year ended December 31, 1999 and the
Company's quarterly reports on Form 10-Q for the quarter ended June 30, 2000
and September 30, 2000.  Among these risks are:  conducting business pursuant
to the purchase agreement method of sale; fluctuations in the actual cash
value of salvage vehicles; the ability to successfully renegotiate existing
purchase agreement contracts; 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; the ability to bring new facilities to
expected earnings targets and the dependence on key insurance company
suppliers.
    For additional information regarding Insurance Auto Auctions free of
charge via fax, dial 1-800-PRO-INFO and use the Company's stock symbol,
"IAAI."
    Additional information about Insurance Auto Auctions, Inc. is available on
the World Wide Web at http://www.iaai.com .