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

MEDFORD, Ore.--Feb. 1, 20058, 2005--Lithia Motors, Inc. today announced that the Board of Directors has approved a dividend of $0.08 per share for the fourth 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 February 28, 2005, will receive the dividend that will be payable March 14, 2005.

About Lithia

Lithia Motors, Inc. is a Fortune 1000 and Russell 2000 Company that sells 25 brands of new vehicles and operates 87 stores and 171 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 98,331 new and used vehicles and had $2.7 billion in total revenue in 2004.

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.