Business Editors

CARMEL, Ind.--(BUSINESS WIRE)--November 13, 2008--KAR Holdings, Inc. today reported its third quarter financial results for the three months ended September 30, 2008. For the third quarter of 2008, the company reported revenue of $444.6 million as compared with third quarter 2007 revenue of $394.3 million, an increase of 12.8%. Adjusted EBITDA, excluding pro forma adjustments for recent acquisitions and cost savings as defined in the company’s senior credit facility dated April 20, 2007, increased 4.2% to $101.8 million in the third quarter of 2008, as compared with third quarter 2007 adjusted EBITDA of $97.7 million.

For the nine months ended September 30, 2008, the company reported that revenue rose 15.5% to $1,375.2 million as compared with revenue of $1,190.5 million for the combined companies of KAR Holdings, Inc. (“KAR”), ADESA, Inc. (“ADESA”) and Insurance Auto Auctions, Inc. (“IAAI”), for the comparable 2007 period. Adjusted EBITDA, excluding pro forma adjustments for recent acquisitions and cost savings, for the nine months ended September 30, 2008, rose 9.1% to $335.7 million as compared with adjusted EBITDA of $307.8 million for KAR, ADESA and IAAI combined for the comparable 2007 period.

Earnings Conference Call Information

KAR Holdings, Inc. will also be hosting an earnings conference call on Friday, November 14th at 11:00 a.m. EST (10:00 a.m. CST). The call will be hosted by KAR Holdings, Inc.’s Chairman and Chief Executive Officer Brian Clingen and Executive Vice President and Chief Financial Officer, Eric Loughmiller. The conference call may be accessed by calling 1-877-795-3648 and entering participant passcode 1241757.

A replay of the call will also be available for two weeks via telephone starting approximately 30 minutes after the completion of the call. The replay may be accessed by calling 1-888-203-1112 and entering conference code 1241757.

About KAR Holdings, Inc.

KAR Holdings, Inc. is the holding company for ADESA, a leading provider of wholesale used vehicle auctions whose operations span North America with 61 used vehicle sites, Insurance Auto Auctions, Inc., the leading North American salvage auto auction company whose operations span North America with 151 sites and Automotive Finance Corporation, a leading capital funding source for the used vehicle industry with 88 sites across North America. For further information on KAR Holdings Inc., ADESA, Insurance Auto Auctions, Inc. or Automotive Finance Corporation, visit the company’s Web site at http://www.karholdingsinc.com.

KAR Holdings, Inc.

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EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA

EBITDA and Adjusted EBITDA, as presented herein, are supplemental measures of the Company’s performance that are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). They are not measurements of the Company’s financial performance under GAAP and should not be considered as alternatives to revenues, net income (loss) or any other performance measures derived in accordance with GAAP or as alternatives to cash flow from operating activities as measures of the Company’s liquidity.

EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit), depreciation and amortization. The Company calculates Adjusted EBITDA by adjusting EBITDA for the items of income and expense and expected incremental revenue and cost savings as described in the Company’s $1,865 million credit agreement. Management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA is appropriate to provide additional information to investors about one of the principal internal measures of performance used by the Company. Management uses the Adjusted EBITDA measure to evaluate the performance of the Company and to evaluate results relative to incentive compensation targets. Adjusted EBITDA per the Credit Agreement adds the pro forma impact of recent acquisitions to Adjusted EBITDA. This measure is used by the Company’s creditors in assessing debt covenant compliance and management believes its inclusion is appropriate to provide additional information to investors about certain covenants required pursuant to the Company’s senior secured credit facility and the notes. EBITDA, Adjusted EBITDA and Adjusted EBITDA per the Credit Agreement measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of the results as reported under GAAP. These measures may not be comparable to similarly titled measures reported by other companies. Results for ADESA and IAAI prior to the consummation of the Merger on April 20, 2007 have been combined.

The following table reconciles EBITDA and Adjusted EBITDA to net income (loss) for the periods presented:

KAR Holdings, Inc.

EBITDA and Adjusted EBITDA (Continued)

Certain of the Company’s loan covenant calculations require financial results for the most recent four consecutive fiscal quarters. The following table reconciles EBITDA, Adjusted EBITDA and Adjusted EBITDA per the Credit Agreement to net income (loss) for the periods presented: