Insurance Auto Auctions Announces Opening of Greenfield Facility in Tucson, Arizona

SCHAUMBURG, Ill., Jan. 20, 2004 -- 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 facility in Tucson, Ariz. This new 16-acre facility will provide needed coverage in the southern part of the state and will leverage IAA's existing location in Phoenix. The new facility will also improve IAA's regional coverage, complementing other existing locations in southern California and New Mexico.

"We continue to look for opportunities in which we can leverage our existing network of branches and customer relationships in a cost effective manner," said Tom O'Brien, CEO of IAA. "The opening of our facility in Tucson will achieve this goal by building off of our existing site in Phoenix and several additional locations throughout the Southwest. We will continue to identify and investigate additional opportunities such as this that will enhance our geographic reach and ability to service our customers throughout the country."

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 75 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