Lithia Motors Acquires Reno Jeep Chrysler in Nevada

MEDFORD, Ore.--Jan. 2, 20049, 2004--Lithia Motors, Inc. announced today that it has completed the acquisition of Reno Jeep Chrysler located in Reno, Nevada. The store will be renamed Lithia Chrysler Jeep of Reno. The store has annualized sales of approximately $55 million.

Lithia Motors Chairman and CEO Sid DeBoer commented, "We first entered the Reno market in 1997 and it has been a solid performing market over the past six years. We are excited to be able to increase our presence there. We now have a very broad line-up in the Reno/Sparks area with six stores representing the Chrysler/Jeep, Volkswagen, Audi, Lincoln/Mercury, Subaru, Hyundai, Suzuki and Isuzu franchises."

Lithia Motors, Inc. is a Fortune 1000 and Russell 2000 Company that sells 24 brands of new vehicles and operates 79 stores and 148 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.

This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995 which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty, including estimated annualized sales assumptions and the ability of the company to complete additional acquisitions in the current year, as well as others set forth from time to time in the company's filings with the SEC. Actual results could differ materially due to these risk factors. Specific risks in this press release include estimated sales.