Insurance Auto Auctions Announces Acquisition of Wilmington Salvage Disposal Company in Wilmington, North Carolina Area

SCHAUMBURG, Ill., June 23 -- Insurance Auto Auctions, Inc. , a leading provider of automotive salvage and claims processing services in the United States, today announced the acquisition of Wilmington Salvage Disposal Company in Castle Hayne, North Carolina, which is located just north of Wilmington. The 23-acre facility represents a key strategic location for the Company, completing state-to-state coverage in North Carolina and South Carolina. The acquisition leverages locations in Charlotte and Raleigh/Durham, North Carolina as well as Charleston and Greenville/Spartanburg, South Carolina.

"We are very pleased with the acquisition of Wilmington Salvage Disposal Company as it fills a major gap in our coverage area," said Tom O'Brien, CEO of IAA. "In addition to allowing us to provide better, more convenient service to our existing customers in the region, the facility's significant size gives us the capacity necessary to add many new customers from the area as well."

O'Brien added, "The market continues to present us with opportunities to cost effectively grow the business. We have been able to add seven new branches so far in 2003, and going forward we expect to add additional facilities that further leverage our existing operations and customer relationships and create value for our shareholders."

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 73 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, terms materially from those discussed or implied herein. Factors that could cause or contribute to such differences include, but are not limited to, those 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 and labor costs.

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