Toyota Financial Joins DaimlerChrysler Services North America in Lithia Motors Credit Facility

MEDFORD, Ore.--Jan. 2, 20041, 2004--Lithia Motors, Inc. announced today that Toyota Financial Services has joined DaimlerChrysler Services North America as a partner in Lithia's credit facility. Toyota's participation will be for approximately $75 million. The credit facility of up to $200 million is for acquisitions and working capital.

Jeff DeBoer, Senior Vice President and CFO of Lithia Motors stated, "We welcome the addition of Toyota Financial Services to our established credit facility. Toyota Financial Services has an excellent position in the financial sector with a triple A credit rating from both Moody's and Standard and Poor's. DaimlerChrysler Services is one of the largest providers of automotive retail and commercial financing in the United States. The partnership of DaimlerChrysler Services and Toyota Financial Services creates a strong foundation for our long-term capital needs as we continue our strategy of consistent growth in the future."

George Borst, TFS President and CEO commented, "Toyota Financial Services has enjoyed a successful partnership with Lithia Motors and we are excited about the opportunity to expand our relationship with them by joining the DaimlerChrysler syndication."

Lithia Motors, Inc. is a Fortune 1000 and Russell 2000 Company that sells 24 brands of new vehicles and operates 78 stores and 144 franchises in 12 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 91,478 new and used vehicles and had $2.38 billion in total revenue in 2002.

About Toyota Financial Services

TFS is the finance and insurance brand for Toyota in the U.S., offering retail auto financing and leasing through Toyota Motor Credit Corporation (TMCC) and extended service contracts through Toyota Motor Insurance Services (TMIS). Lexus Financial Services is the brand for financial products for Lexus dealers and customers. TFS currently employs over 2,700 associates nationwide, and has managed assets totaling more than $42 billion. It is part of a worldwide network of comprehensive financial services offered by Toyota Financial Services Corporation, a wholly-owned subsidiary of Toyota Motor Corporation.

About DaimlerChrysler Services North America LLC

DaimlerChrysler Services North America LLC provides brand specific financing for automotive dealers' inventories and their retail consumers and does business as Chrysler Financial and Mercedes-Benz Credit. As DaimlerChrysler Services Truck Finance it also finances commercial vehicles for affiliate products such as Freightliner, Sterling and Western Star. The company serves as the headquarters for the operations in the United States, Canada and Mexico and has over 5,500 employees who manage a portfolio of $83 billion with nearly five million contracts. DaimlerChrysler Services North America is a member of the DaimlerChrysler Services Group, headquartered in Berlin, Germany which operates in 39 countries with an employee base exceeding 10,800 and a global portfolio of EUR 118 billion. DaimlerChrysler Services is one of the leading financial services companies worldwide.