Insurance Auto Auctions Forms International Marketing Alliances

WESTCHESTER, Ill.--Sept. 22, 2006--Insurance Auto Auctions, Inc., a leader in automotive total loss and specialty salvage services in the United States, today announced the formation of four non-exclusive international marketing alliances with auto purchasing businesses in Latvia, Lithuania, Belarus and Poland. These formal alliances will enable IAA to leverage local marketing expertise in an area of the world where growing demand exists for American insurance salvage vehicles.

"International demand for American cars has increased significantly over the past several years and IAA currently sells vehicles to buyers in 65 different countries," said Dan Oscarson, Vice President of Marketing at Insurance Auto Auctions. "Stronger economies in Eastern Europe, Russia and other surrounding areas are fueling the growing demand for affordable transportation in these regions. With the ease of Internet access to view and bid on vehicles in the United States through I-bid LIVE, buyers are quickly able to help meet that demand."

Under the terms of the marketing alliances, IAA will participate in joint advertising and promotional initiatives in the local markets. The reach of these marketing initiatives will extend not only to the Baltic region, but to Moscow and even to Kazakhstan.

"In addition to our ongoing efforts to recruit quality buyers both here and abroad, we are pleased to enter into these new marketing alliances as a means to create additional exposure of the vehicles we sell to buyers in a region where demand for American vehicles is strong," said Tom O'Brien, President of Insurance Auto Auctions. "These agreements will help IAA leverage our hybrid bidding system that combines live local auctions with live auction Internet bidding to optimize selling prices. As more people adopt Internet technology around the world and while economic and international legislative conditions remain favorable, we expect to see continued buyer support and growth both here and abroad."

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 95 sites across the United States.

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