ADESA Announces Closing of Acquisition by Private Equity Group; Insurance Auto Auctions is Contributed to Surviving Corporation

    CARMEL, IND. & WESTCHESTER, ILL., April 20 /CNW/ - ADESA, Inc.,
(NYSE:  KAR) a leading provider of wholesale vehicle auctions and used vehicle
dealer floorplan financing, announced today the closing of the acquisition of
ADESA by a group of private equity funds consisting of Kelso & Company, GS
Capital Partners, part of the principal investment area of Goldman Sachs,
ValueAct Capital and Parthenon Capital. As previously announced, ADESA
stockholders will receive $27.85 per share in cash.

    As part of the transaction, Insurance Auto Auctions, Inc. ("IAAI"), a
leading provider of automotive salvage auction and claims processing services
in the United States, 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, is approximately $3.7 billion.

    Michael B. Goldberg, Managing Director of Kelso & Company, said, "With
the closing of the deal now behind us, we look forward to entering the next
stage of our partnership with ADESA and IAAI. Both ADESA and IAAI have built
their organizations into leading competitors in their respective spaces, and
the equity sponsors will remain committed to providing the resources necessary
to help grow the combined company."

    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 visit the company's Web site at

    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 95
sites across the United States. Additional information about Insurance Auto
Auctions, Inc. is available on the World Wide Web at

    About Investors

    Kelso & Company, one of the oldest and most established firms
specializing in private equity investing, has been involved in leveraged
acquisitions both as principal and as financial advisor since 1971. Kelso
makes equity investments on behalf of investment partnerships, which it
manages. Since 1980, Kelso has invested in more than 90 companies. For more
information, please visit

    Founded in 1869, Goldman Sachs is one of the oldest and largest
investment banking firms. Goldman Sachs is also a global leader in private
corporate equity and mezzanine investing. Established in 1991, the GS Capital
Partners Funds are part of the firm's Principal Investment Area in the
Merchant Banking Division. Since 1986, Goldman Sachs' Principal Investment
Area has formed 13 investment vehicles aggregating $56 billion of capital to
date. For more information, please visit

    VALUEACT CAPITAL(R), with offices in San Francisco and Boston and more
than $4.8 billion in investments, seeks to make strategic-block value
investments in a limited number of companies. The Principals have demonstrated
expertise in sourcing investments in companies they believe to be
fundamentally undervalued, and then working with management and/or the
company's board to implement strategies that generate superior returns on
invested capital. VALUEACT CAPITAL concentrates primarily on acquiring
significant ownership stakes in publicly traded companies, and a select number
of control investments, through both open-market purchases and negotiated

    Parthenon Capital is a private equity firm with offices in Boston and San
Francisco. The firm provides capital and strategic resources to growing middle
market companies for acquisitions, internal growth strategies and shareholder
liquidity. The firm invests in a wide variety of industries with particular
expertise in Business Services, Financial Services and Healthcare. For more
information, please visit

    Forward-Looking Statements

    The statements contained in this release that are not historical facts
are forward-looking statements. Forward-looking statements are subject to
certain risks, trends and uncertainties that could cause actual results to
differ materially form those projected, expressed or implied by such
forward-looking statements, including, but not limited to: the risk that the
businesses will not be integrated successfully; the risk that the cost savings
and any other synergies from the transaction may not be fully realized or may
take longer to realize than expected; disruption from the transaction making
it more difficult to maintain relationships with customers, employees or
suppliers and other risks and uncertainties associated with the integration of
the businesses. In some cases, you can identify forward-looking statements by
use of words such as "may," "will," "should," "anticipates," "predict,"
"projects," "targeting," "potential," "or "contingent," the negative of these
terms, or other similar expressions. Actual results could differ materially
from those discussed in or implied by forward-looking statements for various
reasons, including those discussed in "Risk Factors" in ADESA's and IAAI's
Form 10-K. You should not place undue reliance on any forward-looking
statements. Except as expressly required by the federal securities laws, the
parties undertake no obligation to publish, update or revise any
forward-looking statements, whether as a result of new information, future
events, changed circumstances or any other reason.

For further information:

For further information: ADESA: Jonathan Peisner, 317-249-4390 Treasurer
OR Media Contact: Julie Vincent, 317-249-4233 Director of Corporate
Communications OR IAAI: Thomas C. O'Brien, 708-492-7001 Chief Executive
Officer OR AT ASHTON PARTNERS: Chris Kettmann, 312-553-6716 General Inquiries

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