SCHAUMBURG, Ill., June 28 /PRNewswire/ -- Insurance Auto Auctions, Inc.
(Nasdaq: IAAI) a leading provider of automotive salvage and claims processing
services in the United States, today announced the signing of an agreement
with CVR (Computerized Vehicle Registration) forming an alliance that will
help streamline title processing within many of its facilities. Through this
new relationship, IAA will utilize CVR's electronic vehicle registration
application and connectivity to various State Departments of Motor Vehicles to
automate the title application process. Information required for the title
application will be sent electronically by CVR directly to the state DMV in a
format compatible with the State's computer system. The automated process
saves days and, in many cases, weeks of unnecessary manual processing.
"CVR is an ideal business partner for IAA," commented Tom O'Brien, Chief
Executive Officer. "By using technology, we will reduce the amount of time
required to sell vehicles. Our customers will experience a faster claim
cycle, and we will benefit from a reduction in the administration time
involved with manually processing title applications and by increasing
inventory turns."
Having successfully completed a pilot with IAA in Virginia during the past
year, CVR will soon begin automating title-processing services at IAA's other
locations where CVR operates and has existing agreements with the State. As
state coverage expands, IAA will benefit from a 12-month exclusive with CVR
within each new market.
About CVR
CVR is a general partnership between the Dealer Services Group of
Automatic Data Processing and the Reynolds and Reynolds Company. It was
formed in 1992 and chartered to develop and administer secure systems to
transmit electronic transactions to and from State Departments of Motor
Vehicles. CVR's clients include franchised automobile dealers, financial
institutions, insurance companies and agents, salvage operations, rental car
companies, fleet providers, and several multi-state retail consolidators (e.g.
AutoNation, CarMax and others). CVR currently processes nearly 2 million
vehicle transfers and 3.5 million secured DMV inquiries annually. The
business is built on the delivery of process improvement and financial
benefits to the DMV and private industry with enhancements to the service
provided to the consumer.
CVR currently supports programs in California, Florida, Virginia,
Maryland, Massachusetts, New Jersey, Texas, Wisconsin, Arkansas, Mississippi,
Tennessee, and North Carolina, with several other states presently in various
stages of development to offer registration, title and inquiry services.
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 58 sites
across the United States.
This press release contains forward-looking information that is subject to
certain risks, trends and uncertainties that could cause actual results to
differ materially from those projected, expressed, or implied by such forward-
looking information. In some cases, you can identify forward looking
statements by our use of words such as "may, will, should, anticipates,
believes, expects, plans, future, intends, could, estimate, predict,
targeting, potential or contingent," the negative of these terms or other
similar expressions. The Company's actual results could differ materially
from those discussed or implied herein. Factors that could cause or
contribute to such differences include, but are not limited to, those
discussed in the Company's annual report on Form 10-K for the fiscal year
ended December 31, 2000. Among these risks are: conducting business pursuant
to the purchase agreement method of sale; fluctuations in the actual cash
value of salvage vehicles; the ability to successfully renegotiate existing
purchase agreement contracts; the quality and quantity of inventory available
from suppliers; the ability to pass through increased towing costs; that
vehicle processing time will improve; that the Company's towing business will
reach forecasted levels of profitability; legislative or regulatory acts,
changes in the market value of salvage; competition; the availability of
suitable acquisition candidates; the ability to bring new facilities to
expected earnings targets and the dependence on key insurance company
suppliers; and the level of energy and labor costs.
For additional information regarding Insurance Auto Auctions free of
charge via fax, dial 1-800-PRO-INFO and use the Company's stock symbol,
"IAAI."
Additional information about Insurance Auto Auctions, Inc. is available on
the World Wide Web at http://www.iaai.com .
SOURCE Insurance Auto Auction
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Related links:
http://www.iaai.com
CONTACT:
Tom O'Brien, Chief Executive Officer of
Insurance Auto Auction, 847-839-4101, or General, Jeff Wilhoit,
312-640-6757, or Media, Tim Grace, 312-274-2240, all of The
Financial Relations Board
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