Lithia Motors Acquires Power Chevrolet in Montana

MEDFORD, Ore.--March 17, 2004--Lithia Motors, Inc. announced today that it has completed the acquisition of Power Chevrolet located in Helena, Montana. The store will be renamed Lithia Chevrolet of Helena. The store has annualized sales of approximately $40 million.

Lithia Motors Chairman and CEO Sid DeBoer commented, "We first entered the state of Montana in April of 2003 with the purchase of Lithia Auto Center of Missoula representing the Chrysler, Dodge and Lincoln/Mercury brands. Then in June of that year, we acquired our second operation, Lithia Dodge of Billings. These two stores have been successful for the company and we are excited to be able to increase our presence in the state of Montana with our Chevrolet store in Helena. Lithia now generates approximately $100 million in annualized revenues in the state of Montana giving us a good base for future growth."

About Lithia Motors

Lithia Motors, Inc. is a Fortune 1000 and Russell 2000 Company that sells 25 brands of new vehicles and operates 80 stores and 149 franchises in 12 Western states and over the Internet through "Lithia.com-America's Car & Truck Store." Founded in 1946, Lithia expanded from one dealership to a $2.5 billion industry-leading dealer group by 2003. Lithia became a publicly traded company in 1996 and today pursues an aggressive acquisition strategy, retailing more than 95,000 new and used vehicles in 2003. 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.

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.

For additional information on Lithia Motors, contact: Jeff DeBoer, Senior VP and Chief Financial Officer 541-776-6868 (E-mail: invest@lithia.com) or Dan Retzlaff, Director Investor Relations at 541-776-6819 or log-on to: Lithia.com - About Lithia - Investor Info