Insurance Auto Auctions Announces Significant Enhancements to I-bid LIVE Product; Company's International Bidding Activity Continues to Grow

WESTCHESTER, Ill.--Jan. 1, 20067, 2006--Insurance Auto Auctions, Inc., a leading provider of automotive salvage and claims processing services in the United States, today announced the introduction of several significant enhancements to its I-bid LIVE(sm) product - the company's Internet-based tool that allows buyers to join live auctions through any Internet-enabled computer and bid along with both live local bidders and other Internet bidders. The product now provides online bidders the ability to monitor and bid on up to eight live auctions across the country through a single window instead of only one auction per window previously. With this change, a buyer can now bid on multiple cars located at multiple auctions at the same time, creating additional bidding opportunities.

"This improvement in the I-bid LIVE interface will allow buyers to simultaneously participate in more IAA auctions than ever before," said Tom O'Brien, CEO of IAA. "Our goal has continued to be improving our technology and services to generate the most buying activity possible, and this product enhancement will help achieve that goal by increasing the bidding ability of each of our Internet buyers. Improving our buyers' ability to bid at multiple auctions should have a positive impact on our selling prices, translating into even higher returns for both IAA and our insurance company suppliers."

Returns at IAA have continued to increase due largely to IAA's expanded service offerings, increased buyer base and dual bidding strategy in which live auctions are supplemented with a live auction Internet bidding capability. "We continue to generate the highest industry returns for our suppliers," said Tom O'Brien, CEO of IAA. "It has become clear over the past two years that combining live auction Internet bidding with live physical auctions is the optimal method of generating the highest returns. Adding the ability for buyers to now participate in up to eight auctions simultaneously will generate further competition among them and have a positive influence on selling prices."

Other recent enhancements to the I-bid LIVE product include the addition of two more vehicle images on the primary sale screen, bringing the total to seven. A low-bandwidth bidding option for those buyers who do not have high-speed Internet has also been added. By selecting this option when entering the system, buyers will be able to experience faster page loading times and more easily navigate the I-bid LIVE interface with their current low-bandwidth provider.

"All the improvements we have made to I-bid LIVE since its introduction have been designed to enhance the user experience and encourage more bidding opportunities for our customers. Consequently, we are able to allow more buyers to participate in our auctions than ever before. Just as we did by adding a low-bandwidth bidding option, we will continue to listen to the needs of our buyer base and respond with a solution that meets those needs," said O'Brien.

International Buying Activity

IAA also announced that it will begin capturing images of the manufacturer's sticker for each vehicle it sells, allowing buyers to obtain the date a vehicle was actually built. This feature is especially important for international buyers whose countries have tariff implications based upon the date of manufacture, not the year model of the vehicle. As a result, IAA expects this imaging feature to generate increased international buying activity because it will provide the information necessary for international buyers to make more informed buying decisions.

"Due to improvements in our overall technology platform, including specific enhancements such as the manufacturer's sticker imaging, the impact of international bidders on our business has been significant and will likely continue to grow," said O'Brien. "We currently sell more than 20% of all our vehicles internationally throughout 62 countries. This increase in buyer participation outside of the United States has played a major role in our ability to generate significantly higher returns for our insurance company suppliers in the past couple of years. We look forward to providing additional products and services to increase international buyer participation even more in the year ahead."

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 81 sites across the United States.

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