Insurance Auto Auctions Announces Opening of Greenfield Facility in Dothan, Alabama

    SCHAUMBURG, Ill., Jan. 27 -- Insurance Auto Auctions, Inc. , a leading provider of automotive
salvage and claims processing services in the United States, today announced
the opening of a greenfield facility in Dothan, Alabama.  This new 13-acre
facility will serve Southern Alabama, Southern Georgia, and the Florida
Panhandle. The site includes an indoor warehouse that will facilitate Run &
Drive(R) auctions and will be used as a vehicle inspection center by insurance
company personnel. The Dothan facility will fill an important gap in the
Southeast region by leveraging two facilities in Northern and Central Alabama,
one in Northern Georgia, and one in Central Florida.
    "This expansion allows us to leverage our existing facilities and
relationships in both the state of Alabama and the Southeast region to cover
an under-penetrated market," said Tom O'Brien, CEO of IAA. "The new operating
system and business processes have also been successfully installed and
implemented in the branch, providing a solid platform for our employees and
customers to do business."

    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 69 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 http://www.iaai.com .