Lithia Motors Offering 5.0 Million Shares of Class A Common Stock

    MEDFORD, Ore.--Feb. 25, 2002--Lithia Motors, Inc. announced today that it commenced its public offering of 5.0 million shares of its Class A Common Stock at a price of $18.25 per share.
    The offering includes 4.0 million newly issued shares to be sold by Lithia Motors and 1.0 million shares to be sold by W. Douglas Moreland, a selling shareholder. Lithia Motors is an operator of 65 automotive franchise stores, offering 24 brands of new vehicles through 123 franchises in nine western states.
    The net proceeds of the offering received by the Company will be used primarily to acquire additional automotive dealerships. Prior to such use, the Company will reduce borrowings under its credit lines.
    This offering is being managed by Morgan Stanley & Co. Incorporated and Stephens Inc. Copies of the prospectus relating to the offering may be obtained from Morgan Stanley, at 1585 Broadway, New York, NY 10036. The offering is scheduled to close on March 1, 2002.