ADESA and Insurance Auto Auctions Report First Quarter 2007 Results

ADESA, Inc., a leading provider of wholesale vehicle auctions and used vehicle dealer floorplan financing, and Insurance Auto Auctions, Inc., a leading provider of automotive salvage and claims processing services in the United States, today reported their first quarter financial results.

Acquisition of ADESA by Private Equity Group

As previously announced, the acquisition of ADESA by a group of private equity funds consisting of Kelso & Company, GS Capital Partners, an affiliate of Goldman Sachs, ValueAct Capital and Parthenon Capital closed on April 20, 2007. As part of the transaction, Insurance Auto Auctions, Inc. (“IAAI”) was contributed to the surviving corporation. Prior to the transaction, IAAI was owned by Kelso & Company, Parthenon Capital and certain members of its senior management. The total transaction value, including the contribution of IAAI, the assumption or refinancing of approximately $700 million of debt and the payment of related fees and expenses, was approximately $3.7 billion.

ADESA First Quarter Results

For the first quarter of 2007, ADESA reported that revenue increased 7 percent to $304.2 million, compared with $285.6 million in the first quarter of 2006. Net income for the first quarter of 2007 was $38.0 million compared with net income of $36.3 million in the first quarter of 2006. Results for the first quarter of 2007 included $2.4 million in transaction expenses related to the acquisition of ADESA by the group of private equity funds.

ADESA Segment Results

Auction Services Group (“ASG”) revenue in the first quarter of 2007 increased 6 percent from $250.4 million to $266.5 million. ASG revenue per vehicle sold increased to $474 as compared with $471 for the first quarter 2006. In addition, ASG experienced a twelve percent increase in operating profit to $54.0 million for the first quarter 2007 versus $48.1 million for the first quarter 2006. The used vehicle conversion rate for the quarter was 66.2 percent versus 66.3 percent in the first quarter of 2006.

Dealer Services Group (“DSG”) revenue in the first quarter of 2007 rose 7 percent to $37.7 million as compared to $35.2 million in last year’s first quarter. DSG loan transaction units increased ten percent to 309,379 loan transaction units in the first quarter of 2007. DSG’s first quarter operating profit increased to $23.6 million compared with $21.4 million in 2006.

IAAI First Quarter Results

IAAI recorded revenues for the quarter of $92.1 million, compared to $77.6 million in the first quarter of 2006, an increase of 19 percent. Fee income in the first quarter increased to $81.5 million versus $66.8 million in the first quarter of last year. IAAI’s earnings from operations increased from $5.5 million in the first quarter of 2006 to $9.2 million in the first quarter of 2007.

About ADESA, Inc.

Headquartered in Carmel, Indiana, ADESA, Inc. is a leading provider of wholesale vehicle auctions and used vehicle dealer floorplan financing. ADESA’s operations span North America with 54 ADESA used vehicle auction sites, 42 Impact salvage vehicle auction sites and 85 AFC loan production offices. For further information on ADESA, Inc., visit the company’s Web site at http://www.adesainc.com.

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, turn-key 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 http://www.iaai.com.

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