Insurance Auto Auctions Fully Operational in the Wake of Hurricane Katrina

WESTCHESTER, Ill.--Sept. 2, 2005--Insurance Auto Auctions, Inc., a leading provider of automotive salvage and claims processing services in the United States, is pleased to report that its facilities in the Gulf states escaped serious damage and avoided the flood waters in spite of catastrophic losses that occurred in surrounding areas. Current inventories also avoided significant damage in the wake of the devastation caused by Hurricane Katrina earlier this week.

"We consider ourselves lucky to have escaped the brunt of this terrible storm" said Tom O'Brien, IAA's CEO. "Our Baton Rouge, La. and Jackson, Miss. facilities felt a very minor impact -- yet continue to operate and will hold their regularly scheduled salvage auctions this week. Although both facilities initially lost power and temporarily lack primary data lines, they are open, fully staffed and are actively planning for the infusion of damaged vehicles from neighboring cities and other remote locations. Additional acreage for storing, cleaning and selling vehicles has been secured and IAA stands ready to assist insurance companies in obtaining the highest recovery possible for vehicles throughout the region."

As for the human drama which is still unfolding, O'Brien stated, "On behalf of all those individuals affected by Hurricane Katrina on the Gulf Coast, Insurance Auto Auctions has made an initial donation to the Red Cross Disaster Relief Fund." The Red Cross is operating more than 250 shelters across seven states, providing a safe haven for nearly 42,000 evacuees - many of whom have been left homeless. The first priority is meeting the urgent, critical needs of those people, which include providing emergency shelter, food and water.

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 80 sites across the United States.