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Insurance Auto Auctions Announces Agreement with USAA

15 September 1999

Insurance Auto Auctions, Inc. Announces Signing of an Electronic Trading Agreement with USAA

    SCHAUMBURG, Ill., Sept. 14 -- Insurance Auto Auctions, Inc.
-- a leader in automotive total loss and specialty salvage
services, today announced the signing of an electronic trading agreement with
USAA for electronic commerce involving transactions from the assignment of the
vehicle through invoicing and payment.
    "USAA is the first of our customers to move to a complete Electronic Data
Interchange (EDI) approach for transaction processing.  We have been providing
Electronic Funds Transfer (EFT) services to IAA customers for some time and
are now glad to have a trading partner who is willing to capture the whole
transaction" said Chris Knowles, Chief Executive Officer.  A member of IAA's
IT team currently chairs the industry committee, Collision Industry Electronic
Commerce Association (CIECA), responsible for developing industry-wide
standards for EDI and EFT transactions.
    USAA has been serving present and former members of the U.S. military and
their families for more than 77 years as one of America's leading insurance
and financial services companies.  The association, well known for its
exceptional customer service, offers its 3.5 million members and associate
members a full range of insurance, banking, and investment products and
services designed to help them meet their financial security needs.
Headquartered in San Antonio, USAA has offices throughout the United States
and Europe.
    Founded in 1982, Insurance Auto Auctions, Inc. a leader in automotive
total loss 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.