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ADESA and Insurance Auto Auctions Report First Quarter 2007 Results

May 30, 2007

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

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.

For the first quarter of 2007, ADESA reported that revenue increased 7percent 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.

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 quarter2006. 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 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.

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