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KAR Auction Services, Inc. Reports First Quarter 2010 Results

May 5, 2010

For Immediate Release
Eric Loughmiller
Executive Vice President and Chief Financial Officer
(317) 249-4254
eric.loughmiller@karauctionservices.com

KAR Auction Services, Inc. Reports First Quarter 2010 Results

Carmel, Ind. – KAR Auction Services, Inc. (NYSE: KAR) today reported financial results for the period ended March 31, 2010. For the first quarter of 2010, the company reported revenue of $458.4 million as compared with first quarter 2009 revenue of $442.5 million, an increase of 4%. Adjusted EBITDA for the first quarter of 2010 was $120.1 million as compared with first quarter 2009 Adjusted EBITDA of $97.1 million, an increase of 24%. Net income for the first quarter of 2010 was $8.1 million, or $0.06 per share, as compared with a net loss of $3.5 million, or $0.03 per share, in the first quarter of 2009. As shown in the attached reconciliation table, adjusted net income per share for the first quarter of 2010 was $0.29 versus adjusted net income per share of $0.09 for the first quarter of 2009.

2010 Outlook
KAR Auction Services, Inc. expects Adjusted EBITDA, net income per share and adjusted net income per share to be at the top end of its previously issued guidance of achieving Adjusted EBITDA of $458 million—$465 million, net income per share of $0.40—$0.45 and adjusted net income per share of $0.90—$0.95. Adjusted net income per share represents GAAP net income per share excluding excess depreciation and amortization resulting from the buyout and acquisition, stock-based compensation and the loss on extinguishment of debt, net of taxes.

Earnings Conference Call Information
KAR Auction Services, Inc. will be hosting an earnings conference call and webcast on Thursday, May 6th, 2010, at 11 a.m. EDT (10 a.m. CDT). The call will be hosted by KAR Auction Services, Inc.’s Chief Executive Officer Jim Hallett and Executive Vice President and Chief Financial Officer Eric Loughmiller. The conference call may be accessed by calling 1-800-768-6490 and entering participant passcode 9545229, while the live web cast will be available at the investor relations section of www.karauctionservices.com.

A replay of the call will be available for one month 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 pass code 9545229. The archive of the web cast will also be available following the call and will be available at the investor relations section of www.karauctionservices.com for a limited time.

About KAR Auction Services, Inc.
KAR Auction Services, Inc. (NYSE: KAR) is the holding company for ADESA, Inc., a leading provider of wholesale used vehicle auctions whose operations span North America with 62 used vehicle sites, Insurance Auto Auctions, Inc., a leading salvage auto auction company whose operations span North America with 154 sites and Automotive Finance Corporation, a leading provider of floorplan financing to independent and franchised used vehicle dealers with 88 sites across North America. For further information on KAR Auction Services, Inc., ADESA, Inc., Insurance Auto Auctions, Inc. or Automotive Finance Corporation (AFC), visit the company’s Web site at www.karauctionservices.com.

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