Insurance Auto Auctions Announces Opening of Greenfield Facility in Lincoln, Illinois

WESTCHESTER, Ill.--Dec. 1, 20043, 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 Lincoln, Illinois. Located midway between Chicago and St. Louis, the new 15-acre location will enable the company to effectively service the mid-state region around Bloomington, Champaign, Springfield, Peoria, and other surrounding communities. The facility represents IAA's fourth new branch of the year and opens with the Company's new IT system fully operational.

"We are pleased with the addition of the Lincoln facility, which gives us a cost effective opportunity to provide service throughout the state of Illinois," said Tom O'Brien, CEO of IAA. "The new location will create greater penetration into existing markets by offering a higher level of statewide service coverage, benefiting both new and existing customers. We continue to remain focused on looking for opportunities that will complement existing facilities and enhance our overall service offering to customers."

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 78 sites across the United States.

Safe Harbor Statement

This report contains forward-looking statements that are 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 statements. In some cases, you can identify forward looking statements by 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 28, 2003 and subsequent quarterly reports. You should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, the Company undertakes no obligation to publish, update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

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