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Insurance Auto Auctions and Former Chairman Settle Dispute

2 April 1998

Insurance Auto Auctions and Former Chairman Settle Dispute

    SCHAUMBURG, Ill., April 2 -- Insurance Auto Auctions, Inc.
, a leading provider of automotive salvage and claims processing
services in the United States, announced it has entered into a settlement
agreement resolving all outstanding disputes between the company and Bradley
Scott, who has resigned as chairman of the board and a director of the
company.
    As previously reported, Scott was a defendant in a lawsuit relating to his
sale of stock in Los Angeles Auto Salvage, Inc., a corporate predecessor of
Insurance Auto Auctions, and notified the company of his intent to seek
indemnification from Insurance Auto Auctions for any amounts paid in
connection with the adjudication or settlement of the lawsuit.  The company
denied any right to indemnification.  Scott recently settled his lawsuit.
    In the settlement agreement between the company and Scott, Scott resigned
from his positions with Insurance Auto Auctions and agreed not to pursue his
claim for indemnification, the parties terminated various agreements
(including agreements providing for compensation and certain benefits through
June 30, 1999, and all outstanding stock options), and the company made a lump
sum payment of $700,000 to Scott, which included a bonus payment for 1997 of
$126,000 pursuant to a 1996 agreement between the company and Scott.
    "The company wishes Bradley Scott the best in his future endeavors and is
appreciative of his past efforts in founding and helping to build Insurance
Auto Auctions into the largest salvage services firm in the United States,"
said James P. Alampi, president and chief executive officer.
    Founded in 1982, Insurance Auto Auctions, Inc. is the largest provider of
automotive and specialty salvage services in the United States, providing
insurance companies with cost-effective, turnkey solutions to process and sell
total loss and recovered theft vehicles, a $3 billion per year industry. The
company has 48 auction sites across the United States.

SOURCE  Insurance Auto Auctions, Inc.