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Insurance Auto Auctions Announces Search For New CEO

21 July 2000

Insurance Auto Auctions Announces Search For New CEO

    SCHAUMBURG, Ill. - Insurance Auto Auctions, Inc., a leading provider of 
automotive salvage and claims processing services in the United States, today 
announced it has engaged Korn Ferry International to conduct a nationwide search 
for a new CEO to succeed Christopher Knowles, whose contract with the company 
ends in December, 2000.

    Thomas J. O'Malia, Chairman of the Board, said "Chris Knowles stepped in
to lead IAA at a difficult time when our prior CEO left.  At the time he
assumed the position of CEO, Chris made his desires clear to the Board that he
would serve until the time that the company had restored its base competencies
to profitable levels and had established a clear direction for the future.  We
have reached that juncture.  The growth in all areas of our business -- base
business, initiatives and eBusiness -- are a testament to Chris and his
management team."

    "The company has a clear strategy in place and, to continue our progress,
we expect our next CEO to bring new skill sets that will enhance our ability
to serve the changing nature of our business," O'Malia added.

    Once the new CEO joins the company, Knowles has agreed to serve in an
advisory role, as needed, for the foreseeable future.

    Greif & Co.

    In addition, the company announced it has completed its work with Greif &
Co.  O'Malia commented, "Greif & Co. was very helpful in assisting the Board
and management in examining alternatives to increase shareholder value, in
stepping up the pace of the company's acquisition program and in developing
financing strategies for future growth. With the company now moving ahead
nicely, the services of Greif & Co. are no longer required on an ongoing
basis.

    "The Board appreciates the quality of work which was done and feels better
prepared to act on various approaches should the need arise in the future,"
O'Malia added.

    About Insurance Auto Auctions, Inc.

    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 54
auction sites across the United States.