Insurance Auto Auctions Continues Expansion - Announces Intent to Purchase Indiana Auto Storage Pool

WESTCHESTER, Ill.--April 12, 2006--Insurance Auto Auctions, Inc., a leader in automotive total loss and specialty salvage services in the United States, today announced that it has entered into an agreement to purchase the assets of Indiana Auto Storage Pool (IASP). IASP operates two locations in Indiana--a 45-acre facility in Indianapolis and a 15-acre site in South Bend. IAA expects the acquisition to close by the end of April.

"The Indiana Auto Storage Pool is one of the premiere independent salvage operators in the United States and we are pleased to have the opportunity to work with Tom Duiser, Hershel Harris, Tim Nasco and their staff," said Tom O'Brien, CEO of IAA. "We look forward to continuing the fine tradition they have established of delivering outstanding customer service to clients in the state of Indiana and building upon that tradition by including the additional services and resources IAA has developed over the years."

The purchase of the IASP locations represents an important strategic move for the Company, significantly expanding IAA's footprint in the Midwest and complementing existing locations in Illinois and Michigan. Once the purchase is finalized, IAA will deploy the enhanced I-bid LIVE(sm) online bidding platform, providing buyers the option to bid on vehicles in real-time via the Internet.

O'Brien continued: "Throughout the process of expanding geographically, we continue to generate record returns for our suppliers. For the third consecutive year, IAA has produced double-digit increases in salvage returns and buyer attendance is up 24% year-to-date in 2006 over the same period last year. In addition to the thousands of buyers who attend our live auctions, online buyers from across the country and from 65 different countries are participating in live auctions through the Internet. Combining live auctions with live Internet bidding has proven to produce better results than any other auction format, including Internet-only auctions."

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 83 sites across the United States.

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