Insurance Auto Auctions Acquires NW Penn Auction Sales/Warren County Salvage in Erie, Pennsylvania

WESTCHESTER, Ill.--March 8, 2006--Insurance Auto Auctions, Inc., a leader in automotive total loss and specialty salvage services in the United States, today announced the acquisition of NW Penn. Auction Sales/Warren County Salvage located in Erie, Pennsylvania. This acquisition represents the fourth IAA location in Pennsylvania, allowing IAA to better serve northern and central Pennsylvania as well as southwestern New York. The auction site will soon offer its customers a Run & Drive(R) facility at its live auctions as well as live auction Internet bidding through the upgraded I-bid LIVE(sm) portal.

"We are extremely pleased to be working with the existing local partners to make this a seamless transition of services now and as we go forward," said Tom O'Brien, CEO of IAA. "As a result of the ongoing success of our expanded service offering and dual bidding strategy, we continue to experience significantly greater buyer demand throughout the country that allows IAA to generate the highest industry returns for our suppliers in both new and existing markets. The NW Penn acquisition adds to IAA's footprint in the state of Pennsylvania as well as the Northeastern United States, an area of the country demonstrating high growth in demand for our services."

O'Brien continued, "The combination of live auction Internet bidding with the live physical auction continues to be the industry's best method for generating the highest returns and we expect to apply this way of doing business in our new Erie location. We will continue to use acquisitions such as this one to leverage existing facilities in order to expand IAA's network and customer base."

About Insurance Auto Auctions

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