Lithia Motors Acquires Summit Dodge in Helena, Montana; Lithia now has six dealerships in Montana

MEDFORD, Ore.--Nov. 1, 20046, 2004--Lithia Motors, Inc. the country's eighth-largest automotive dealership group, today announced the acquisition of Summit Dodge in Helena, Montana. Lithia has now made 11 acquisitions in 2004. This dealership will start up operations as Lithia Dodge of Helena on November 17, 2004. Lithia now generates approximately $155 million in annualized revenues in the state of Montana. Lithia has acquired nearly $340 million in total annualized revenues in 2004.

"We first entered the Montana market in April of 2003 with the purchase of a Chrysler Dodge store in Missoula, Montana. Later that year, we acquired a Dodge store in Billings. So far, in 2004, we have purchased a Chevrolet store in Helena, and two operations in Great Falls -- a Chrysler Dodge Jeep store and a Honda store. These stores have been successful for the company and we are excited to be able to increase our presence in the state of Montana with this new Dodge store in Helena. Helena has accepted us as an involved community business and we will serve the people of Helena in our proven Lithia way," said Lithia Chairman and CEO Sid DeBoer.

About Lithia Motors

Lithia Motors, Inc. is a Fortune 1000 and Russell 2000 Company that sells 25 brands of new vehicles and operates 86 stores and 163 franchises in 13 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