Insurance Auto Auctions Announces Acquisition in Orlando, Florida

SCHAUMBURG, Ill., June 27 -- Insurance Auto Auctions, Inc. , a leading provider of automotive salvage and claims processing services in the United States, today announced the acquisition of the Damaged Vehicle division of Manheim's Orlando Orange County Auto Auction located in Orlando, Florida. Representing IAA's second facility in the state, this 24-acre branch will help solidify IAA's coverage in central Florida by leveraging the Tampa Bay branch.

"Due to the significant number of people in the state, it goes without saying that Florida is a key market in the auto salvage industry," said Tom O'Brien, CEO of IAA. "Therefore, we are very pleased to announce the Orlando acquisition because of the positive impact it can ultimately have on our overall business. We believe it was a very cost effective way to further penetrate this new large market."

O'Brien continued, "We believe our expansion efforts in the first half of the year have been extremely successful. With eight new branches so far this year, and the potential to add more in the future, we are clearly recognizing opportunities that either leverage existing facilities or penetrate new markets. We will continue to deploy capital in those facilities that we believe will 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 74 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 .