Lithia Motors Acquires Stores in Idaho Northwest's Fastest Growing Company Continues Acquisitions

    MEDFORD, Ore., March 9 Lithia Motors, Inc.
announced today that it has completed the acquisition of two stores in
Pocatello, Idaho; one representing the Honda brand and the other with Dodge,
Chrysler and Hyundai brands. The stores have combined estimated 2000 sales of
$48 million.  Lithia's net investment in the stores totals approximately
$5.5 million and was paid in cash.
    Lithia Motors Chairman and CEO Sid DeBoer stated, "Lithia is dedicated to
continuing its growth in 2001.  The addition of two stores with strong brands
in a small but strong regional market is a perfect example of how we have
grown in the past, and how we will continue to grow in the future.  Pocatello,
Idaho is one of the strongest markets in the state and will be a good
compliment to our already growing operations in Boise."
    Separately, Lithia completed the planned alignment and disposition of its
Jeep, Mitsubishi and Kia franchises in Sioux Falls, South Dakota.  These
brands represented approximately $13 million in annualized sales for the two
stores owned by the company.  Lithia now operates two stand-alone stores in
the Sioux Falls market representing the Chevrolet and Subaru brands,
respectively.
    Sid DeBoer added, "The sale of these franchises serves both our interests
and those of the manufacturers. We have a good relationship with Chrysler, and
our sale of the Jeep franchise will help Chrysler in its effort to re-align
that franchise with its other brands in the area.  Furthermore, with strong
brands like Chevrolet and Subaru, it is desirable to operate facilities
exclusive to those brands.  We are confident that these stores will continue
to perform very well in the growing Sioux Falls market."
    With this most recent acquisition, Lithia now operates 114 franchises in
California, Oregon, Washington, Nevada, Colorado, Idaho, South Dakota and
Alaska.  Lithia sells 26 brands of new vehicles at 56 stores and over the
Internet through "Lithia.com - America's Car & Truck Store."  Lithia also
sells used vehicles; arranges finance, warranty, and credit insurance
contracts; and provides vehicle parts, maintenance, and repair services at all
of its locations.  Lithia retailed 68,126 new and used vehicles in 2000.
Lithia's current annualized revenue run rate, including all completed
acquisitions, is over $1.7 billion.
   This press release includes forward-looking statements, which management
believes are a benefit to shareholders. Within the meaning of the
"Safe-Harbor" provisions of the Private Securities Litigation Reform Act of
1995, these statements are necessarily subject to risk and uncertainty and
actual results could differ materially due to certain risk factors, including
without limitation economic conditions, acquisition risk factors and others
set forth from time to time in the company's filings with the SEC.  Specific
risks in this press release include revenue run rate.

    For additional information on Lithia Motors, contact:  Jeff DeBoer,
Senior VP and Chief Financial Officer 541-776-6868
(E-mail: invest@lithia.com) or Dan Retzlaff, Investor Relations Manager at
541-776-6819 or log-on to:  Lithia.com - About Lithia - Investor Info.