Lithia Motors Acquires Santa Fe Chrysler Jeep Dodge in the State of New Mexico; First Lithia store in New Mexico

MEDFORD, Ore.--Nov. 3, 2004--Lithia Motors, Inc. the country's eighth-largest automotive dealership group, today announced the acquisition of Horace Dodge Chrysler Jeep. Lithia has now made 10 acquisitions in 2004. The store will start up operations as Lithia Chrysler Jeep Dodge of Santa Fe today, November 3, 2004.

"We are proud to enter the New Mexico market in the beautiful city of Santa Fe," said Lithia Chairman and CEO Sid DeBoer. "The company began as a small Dodge store in Southern Oregon, where we learned that customer service and establishing long-term relationships with our customers are vital. Lithia also brings uniform practices and a fully integrated operations method to the stores it acquires. We look forward to bringing Lithia's industry leading operating practices and a culture of customer service to our newly acquired operation in Santa Fe."

About Lithia Motors

Lithia Motors, Inc. is a Fortune 1000 and Russell 2000 Company that sells 25 brands of new vehicles and operates 85 stores and 161 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. 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. In Fortune magazine's 2004 "Most Admired Companies" survey, Lithia ranked No. 2 among all dealerships in the Automotive Retailing/Services category. Highlighting the great partnerships it has developed in each community, the list ranked Lithia No. 1 in "social responsibility," one of eight criteria used to measure each business against its competition.

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.