IAA’s dual bidding strategy has continued to drive more buyers
to the Company’s auctions than ever before, resulting in
increased bidding activity and higher vehicle returns for its
insurance company suppliers.

“Combining the feedback we have been receiving from our
customers with our internal data, we believe our vehicle returns
were the highest in the industry during the quarter, which we
feel is a direct result of our dual bidding platform and
improved levels of customer service,” said Tom O’Brien, CEO. “On
average, our returns have increased more than $300 per unit
compared to 2003, providing a significantly better return for
our insurance company suppliers. Our live auctions, most of
which feature Run & Drive(R) auction lanes, are supplemented
with our state-of-the-art Internet bidding capability, giving
our growing customer base the flexibility to see and bid on our
vehicles up close or through the Internet from anywhere in the
world in a real-time setting. Enthusiastic buyer support of our
auction model is clearly evident from the increase in buyer
participation we have experienced, both at live auctions and via
the Internet. By encouraging more buyers to come on to our
bidding platform than ever before, we believe that during the
quarter we were able to generate more bidding activity and the
highest vehicle returns in the industry.”

Commenting further on the Company’s recent operating
performance, O’Brien said, “We haven’t missed a beat throughout
the organization since the close of the Kelso & Company
acquisition in late May. The transaction has allowed us to focus
even more of our time and energy on improving our operations and
service levels to our customers, translating into much higher
returns for our suppliers and higher profits for IAA. The
Company generated revenues of $71.9 million in the second
quarter, compared with $60.0 million in the same quarter of
2004. Gross profit margins improved to 26% in the second
quarter, up from 22% in the same quarter of last year. We also
continued to strategically expand during the quarter,
specifically in Jacksonville, Altoona and Charleston, providing
IAA with a greater geographic reach to meet the needs of our
current and potential customers. Going forward we will continue
to target new strategic opportunities that will further increase
our buyer base and maintain our momentum of generating
significantly higher returns.”

S-4 Filing: Insurance Auto Auctions also filed an S-4 today that
provides supplemental financial information to the results
provided herein. Please refer to this document for additional
financial information about the Company and its quarterly
results.

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 80 sites across the United States.

Additional information about Insurance Auto Auctions is
available on the World Wide Web at:

http://www.CarLackey.com

http://www.AutoLackey.com

http://www.RichLackey.com

Please Help Hurricane Katrina Victoms below: Visit “RED CROSS”
by using the link below… http://www.redcross.org/

Victims of Hurricane Katrina are attempting to recover from the
massive storm that is still making its way across the
Mid-Atlantic States. American Red Cross volunteers have been
deployed to the hardest hit areas of Katrina’s destruction,
supplying hundreds of thousands victims left homeless with
critical necessities. By making a financial gift to Hurricane
2005 Relief, the Red Cross can provide shelter, food, counseling
and other assistance to those in need. http://www.redcross.org

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1. What is a salvage auto auction? An insurance auction is basically a regular car auction that only sells vehicles that insurance companies have labeled as salvaged.

2. What are salvaged cars? Salvaged cars are those that have been in an accident, flood or fire and are considered totaled by the previous owner’s auto insurance. A salvage car could get that title for something as little as having the airbag deploy in a minor fender bender. Or be completely burned to a crisp.

3. Is there any risk involved? You’re taking more of a risk when buying from these type of car auctions because the cars are sold in as-is condition and will need repairs and/or body work done. Sometimes the repairs could be as little as replacing a bumper to something so serious the car can only be used for parts. The car could’ve also been in a flood which will cause the electrical system to go out sooner or later. So, know what you’re getting into!

4. Who can go to one? Because of the risk involved, insurance salvage auto auctions are only open to car dealers that have a valid license. But, you can become friends with a local dealer that might take you along with them to their next auction. 9 times out of 10 they’ll charge you a fee though.

5. Where can I find an insurance auto auction near me? You can ask your local dealer or find a car auction site online that will give you some locations near you.

So, now you know the real deal about insurance salvage auto auctions. They sell cars that have been totaled, so you’re going to have to make some kind of repair to it no matter what. You can find one near you by looking online or going with a used car dealer you know. But, you’re really better off going to a regular public auto auction that has cars that are generally in good condition. That way you don’t have to come out of your pockets to pay for repairs.

Not feeling too sure about going to a insurance salvage auto auction? I don’t blame you. Thankfully there are plenty of public, government and police car auctions you can go to that will still save you $1000’s off your next car.

Find out local car auctions in your area by visiting MyCarAuctionReview.com for the best car auction sites around!

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