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Insurance Auto Auctions Announces the Opening of New Miami Location

7 January 1999

Insurance Auto Auctions Announces the Opening of New Miami Location; Board Announces Management Changes

    SCHAUMBURG, Ill., Jan. 7 -- Insurance Auto Auctions, Inc.
today announced the addition of a new greenfield site in
Pembroke Pines, Fla., a west suburb of Miami.  The new site, which will go on
line later this year, will have over 20 acres containing office, warehouse and
storage facilities with the inclusion of over three acres for a vehicle
auction arena.  Additionally, the new site will have the added features
required for the new service offerings including onsite vehicle inspection,
digital imaging and vehicle enhancement services.
    Christopher G. Knowles, interim chief executive officer, said, "We are
pleased to announce the addition of our new Miami location as it reaffirms our
business strategy to grow through geographic expansion.  Florida and the
southeast will continue to be an important marketplace for us in the future.
In addition, we are excited to offer our suppliers with a new location that
will focus on reducing the time for total loss processing and result in a
rapid settlement of claims.  The new onsite services will save our suppliers
advance charges, claims costs, car rental and storage.  These premium service
offerings position IAA as a cost-effective, value-added supplier of salvage
processing solutions."
    Separately, the Board of Directors announced that Linda C. Larrabee, chief
financial officer, has been named senior vice president of Business
Development in addition to her CFO responsibilities.  The Board also announced
the promotion of Stephen L. Green to vice president-finance.  Green, along
with his current finance responsibilities, will be responsible for human
resources, treasury and facilities functions.  Ronald W. Hope, senior vice
president-business development, and Charles E. Rice,
vice president-information systems, have left the company to pursue other
opportunities.  The company stated that these management changes recognize the
increasingly important role that business development plays on the company's
future growth.
    Thomas J. O'Malia, chairman of Insurance Auto Auctions, commented, "Linda
has done a tremendous job during her tenure at IAA.  Her appointment to
oversee the business development of the company is indicative of the strength
and growth opportunity we see in this segment of our business.  In addition to
her extensive knowledge of implementing technology and marketing of service,
we believe Linda's dynamic leadership abilities will allow us to deliver the
most value to our customers."
    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 currently has 50 auction sites across the United States.
    This press release contains forward-looking information that is subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected, expressed or implied by such forward-looking
information.  The company's actual results could differ materially from those
discussed or implied herein.  Factors that could cause or contribute to such
differences include, but are not limited to, those discussed in the company's
annual report, Form 10-K for the fiscal year ended December 31, 1997, or
subsequent quarterly reports.  Among these risks are legislative acts, weather
conditions, changes in the market value of salvage, outcome of litigation,
competition, quality and quantity of inventory available from suppliers and
dependence on key insurance company suppliers.
    Additional information about Insurance Auto Auctions, Inc. is available on
the World Wide Web at http://www.iaai.com.