Insurance Auto Auctions Announces Acquisition of Mountain States Salvage Pool In Salt Lake City Area

SCHAUMBURG, Ill., April 30 -- Insurance Auto Auctions, Inc. , a leading provider of automotive salvage and claims processing services in the United States, today announced the acquisition of Mountain States Salvage Pool located in Ogden, Utah. Situated just north of Salt Lake City, the 22-acre facility represents the Company's first location in the state of Utah. The acquisition also signals IAA's cost effective entry into a new market, as no other Company branches currently exist within a 300-mile radius of the new facility.

"The acquisition of Mountain States Salvage Pool offers us a unique opportunity to expand in an area in which we have not had a presence historically," said Tom O'Brien, CEO of IAA. "We believe the acquisition was a cost effective way to enter this new market, as their current relationships give us a strong foundation upon which we can build. We look forward to expanding our presence in the area in the quarters ahead."

O'Brien added, "As the sixth new branch we've added so far this year, we have already reached our goal of adding six to ten new branches during the year. However, we believe a number of growth opportunities still exist throughout the country, and we will continue to deploy capital in those facilities that we believe offer our shareholders the best return on their investment."

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 72 sites across the United States.

Safe Harbor Statement

Certain statements in this document contain 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 29, 2002 or subsequent quarterly reports. Among these risks are: changes in the market value of salvage; the quality and quantity of inventory available from suppliers; the ability to pass through increased towing costs; that vehicle processing time will improve; legislative or regulatory acts; 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 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 .