Insurance Auto Auctions, Inc. Announces Increase in Price for Tender Offer and Consent Solicitation for Its 11% Senior Notes Due 2013

. March 27, 2007

Insurance Auto Auctions, Inc. (the “Company”) announced today that it is amending its previously announced offer (the “Offer”) to purchase for cash any and all of its outstanding $150,000,000 aggregate principal amount of 11% Senior Notes due 2013 (the “Notes”) and the related solicitation of consents (the “Consent Solicitation”) from holders of the Notes for certain amendments that would, among other things, eliminate substantially all of the restrictive covenants in the indenture and certain events of default contained in the indenture under which the Notes were issued (the “Indenture”).

The Company has increased the total consideration to $1,157.50 from $1,120.00 per $1,000 in principal amount of Notes validly tendered and accepted for purchase in the tender offer. The total consideration includes a consent payment equal to $30 per $1,000 in principal amount of Notes (the “Consent Payment”). The Offer and the Consent Solicitation were commenced on March 22, 2007 and are being made on the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated March 22, 2007 and the accompanying Consent and Letter of Transmittal (the “Offer Documents”). All terms and conditions to the Offer and Consent Solicitation, other than price, remain unchanged.

If a holder has previously tendered its Notes, such holder need not take any further action in order to receive the increased price.

The Consent Solicitation will expire at 5:00 p.m., New York City time, on April 5, 2007, unless earlier extended or terminated (such date and time, as the same may be modified, the “Consent Time”). The Offer will expire at 8:00 a.m., New York City time, on April 23, 2007, unless extended or earlier terminated (such date and time, as the same may be modified, the “Expiration Time”).

Holders who validly tender their Notes after the Consent Time, but on or prior to the Expiration Time, will be eligible to receive the total consideration less the Consent Payment. In either case, all Holders who validly tender their Notes will receive accrued and unpaid interest up to, but not including, the date of settlement.

The Company has retained Bear, Stearns & Co. Inc. to act as sole Dealer Manager for the Offer and as the Solicitation Agent for the Consent Solicitation. Bear, Stearns & Co. Inc. can be contacted at (212) 272-5112 (collect) or (877) 696-BEAR (toll free). D.F. King & Co., Inc. is the Information Agent and can be contacted at (212) 269-5550 (collect) or (888) 887-1266 (toll free). Copies of the Offer Documents and other related documents may be obtained from the Information Agent.

The Offer and Consent Solicitation are being made solely on the terms and conditions set forth in the Offer Documents. Under no circumstances shall this press release constitute an offer to buy or the solicitation of an offer to sell any securities of the Company. This press release also is not a solicitation of consents to the proposed amendments to the indenture. The Offer and Consent Solicitation are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction.

None of the Company, the Dealer Manager or the Information Agent makes any recommendation as to whether holders of the Notes should tender their Notes or consent to the proposed amendments to the indenture and no one has been authorized by any of them to make such recommendations. Holders must make their own decisions as to whether to consent to the proposed amendments to the indenture and to tender the Notes.

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 99 sites across the United States. Additional information about Insurance Auto Auctions, Inc. is available on the World Wide Web at www.iaai.com.

Category: Auction News

Comments are closed.