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Insurance Auto Auctions Announces Closing of Acquisition by Kelso & Company

WESTCHESTER, Ill.--May 2, 20055, 2005--Insurance Auto Auctions, Inc. , a leading provider of automotive salvage auction and claims processing services in the United States, today announced that it has received the shareholder votes necessary to complete the acquisition of IAA by an affiliate of Kelso & Company, a New York based private equity firm, for approximately $400 million. As previously announced, IAA's stockholders will receive $28.25 per share in cash as a result of the transaction.

Tom O'Brien, President and Chief Executive Officer of IAA, said, "IAA has accomplished many of its financial, operational and strategic goals over the past few years. Looking ahead, we will continue to focus on improving the products we offer and the level of service we provide to both our insurance company suppliers and our growing network of buyers."

Michael B. Goldberg, Managing Director of Kelso & Company, said, "We are pleased to have the opportunity to invest in IAA. IAA has established itself as a leader in the automotive salvage industry, and we will support IAA's growth objectives, including the expansion of its geographic footprint, in the years ahead."

All shareholders with questions regarding the conversion of their IAA shares should refer to the Company's proxy statement, which was mailed to shareholders of record on April 26, 2005.

Insurance Auto Auctions, Inc., founded in 1982, is a leader in automotive total loss and specialty salvage services in the United States. IAA provides insurance companies with cost-effective, turnkey solutions to process and sell total-loss and recovered-theft vehicles. The Company currently has 79 sites located 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 26, 2004 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