Lithia Motors Adds New Dealerships

MEDFORD, Ore., Dec. 5, 2002; Lithia Motors, Inc. announced today that it has completed the acquisitions of Les Vogel Chrysler/Jeep/Dodge in Burlingame, California and Sound Hyundai in Renton, Washington. These are fill-in acquisitions to existing markets for Lithia. The stores will be renamed Lithia Chrysler Jeep Dodge of Burlingame and Lithia Hyundai of Renton. Combined annualized revenues for the two stores total approximately $40 million. The acquisitions were paid for in cash. Lithia Motors Chairman and CEO Sid DeBoer added, "We've now acquired nearly $455 million in annualized revenues this year, which is 33% more than we acquired in 2001. These are Lithia's twelfth and thirteenth store acquisitions of the year. We've been successful at diversifying our markets this year with acquisitions in Texas, Nebraska, Colorado, California, Washington and Oregon." "In 2003 we expect to be able to continue with our active acquisition strategy. The acquisition environment for 2003 looks good with increasing opportunities. We have a very strong balance sheet and the capital in place to execute our acquisition plans," concluded Sidney B. DeBoer. Lithia Motors, Inc. is a Fortune 1000 and Russell 2000 Company that sells 25 brands of new vehicles and operates 71 stores and 133 franchises in 10 states in the Western United States 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 76,835 new and used vehicles and had $1.87 billion in total revenue in 2001.