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IAA Expands its Geographic Coverage

17 August 2000

    SCHAUMBURG, Ill. - Insurance Auto Auctions, Inc., announced today the 
opening of new facilities in Woodinville, Washington and Caldwell, Idaho.

    These new facilities give the company complete geographic coverage in the
states of Washington, Oregon and Idaho.  Insurance Auto Auctions now has 56
storage and auction locations sites nationwide.

    The Woodinville location is IAA's second location servicing the greater
Seattle marketplace and provides 15 additional acres to address the market's
expanded business needs.  The 5-acre Caldwell, Idaho facility is a strategic
addition and will provide service coverage for Boise and the rest of Southern
Idaho as well as Northeastern Oregon and Southeastern Washington.

    "The addition of these new sites further expands our geographic coverage,"
commented Christopher Knowles, Chief Executive Officer.  "The Woodinville
facility in the north Seattle area significantly adds to our ability to
service our customers and solidifies our presence in the important Seattle
metropolitan marketplace.  We will continue to add new sites in 2000 through
acquisition and the opening of new facilities."

    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.  This is a $3 billion per year
industry.  The company currently has 56 auction sites across the United
States.

    For additional information regarding Insurance Auto Auctions free of
charge via fax, dial 1-800-PRO-INFO and use the company's stock symbol,
"IAAI."