Lithia Motors Reports Full-Year 2002 Net Income

    MEDFORD, Ore., Feb. 13 -- Lithia Motors, Inc.
today announced that net earnings rose 49% to $32.32 million for
the full-year 2002 compared to $21.75 million in 2001.  Earnings per share
rose 15% to $1.84 per share versus $1.60 in the same period last year.  This
was on 29% more diluted shares outstanding than in 2001.  2002 total revenues
were $2.38 billion.
    Full-year total retail same store sales increased +1.1%.  Full-year new
vehicle same store sales increased +5.7%, as compared to an industry that was
down approximately 2%.
    Fourth quarter 2002 net earnings increased 18% to $7.26 million from $6.13
million in the fourth quarter of 2001.  Earnings per share were $0.40 on 33%
more shares outstanding.  Fourth quarter 2002 revenues were $580.60 million.
    Sid DeBoer, Lithia's Chairman and CEO, commented: "Business slowed
substantially in October, November and the first part of December but then
picked up strongly in the second half of December.  As a result, our earnings
performance was better than expected for the quarter and the year.  With
earnings of $0.40 per share for the fourth quarter we exceeded the high end of
recent fourth quarter guidance by 6 cents.  Our initial full-year 2002
earnings guidance, issued in October of 2001, was for a range of $1.72 to
$1.80 per share, which did not include the secondary offering of 4.5 million
new shares completed in the first quarter of 2002.  Our book value per share
at year-end was $17.72."
    Lithia Motors will be providing more detailed information on the results
for the fourth quarter and full-year 2002 in its press release scheduled for
February 26th at 8 a.m. E.T. and conference call scheduled for 11 a.m. PT,
2 p.m. E.T. that same day.  The live conference call can be accessed by
calling 973-582-2700. To listen to a live webcast or hear a replay, log-on to:
http://www.lithia.com -- go to Investor Relations -- and click on the Live Conference
Call icon.
    Lithia currently owns 132 franchises in California, Oregon, Washington,
Nevada, Colorado, Idaho, South Dakota, Alaska, Texas and Nebraska and sells 24
brands of new vehicles at 71 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.
    For additional information on Lithia Motors, contact: Jeff DeBoer, Senior
VP and Chief Financial Officer at 541-776-6868 (E-mail: invest@lithia.com) or
Dan Retzlaff, Director Investor Relations at 541-776-6819 or log-on to:
http://www.lithia.com -- go to About Lithia -- Investor Relations