Lithia Motors Inc. Declares Quarterly Dividend of $0.08 Per Share for the Third Quarter of 2004

MEDFORD, Ore.--Oct. 2, 20041, 2004--Lithia Motors, Inc. today announced that the Board of Directors has approved a dividend of $0.08 per share for the third quarter of 2004. Lithia inaugurated its first quarterly dividend of $0.07 per share in the second quarter of 2003. Shareholders of record as of November 1, 2004, will receive the dividend that will be payable November 15, 2004.

About Lithia

Lithia Motors, Inc. is a Fortune 1000 and Russell 2000 Company that sells 25 brands of new vehicles and operates 85 stores and 162 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 95,255 new and used vehicles and had $2.51 billion in total revenue in 2003.

Additional Information

For additional information on Lithia Motors, contact the Investor Relations Department: 541-776-6591 or log-on to: www.lithia.com -- go to Investor Relations.