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Insurance Auto Auctions Responds to Copart's Proposal

17 March 1999

Insurance Auto Auctions Responds to Copart's Proposal

    SCHAUMBURG, Ill., March 17 -- Insurance Auto Auctions, Inc.
today said that its board of directors rejected an unsolicited
merger proposal from Copart, Inc., because the offer was not in the best
interest of its shareholders.
    The company believes that significant shareholder value will be achieved
through continued improvement in performance, and possible alternative
transactions including re-capitalizations, refinancing transactions and
strategic partnerships.
    Christopher G. Knowles, interim chief executive officer, said, "As
evidenced by our turnaround, we have begun to see the generation of
significant levels of profitability, which in due course, will be reflected in
shareholder value.  We believe IAA is in good shape for the future, our
financial position remains strong and we continue to be enthusiastic about the
opportunities ahead of us.  As the largest provider of services in this
market, we believe IAAI is well positioned to take advantage of the reach of
its facilities and to leverage its strengths to service its customers and
deliver value to the shareholders."
    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